Fairchem Organics Limited announced its financial results for the fourth quarter (Q4) and full year (FY) ended 31 March 2025, through an earnings presentation on 28 May 2025.
- For Q4 FY25 (January-March 2025):
- Revenue from operations stood at ₹120.8 crore, a decrease of 24.8% year-on-year from ₹160.6 crore in Q4 FY24, though an increase of 6.3% quarter-on-quarter from ₹113.6 crore in Q3 FY25.
- EBITDA significantly declined by 76.6% year-on-year to ₹4.4 crore from ₹18.8 crore in Q4 FY24, with EBITDA margins at 3.64%.
- Profit After Tax (PAT) plummeted by 94.9% year-on-year to ₹0.6 crore from ₹11.8 crore in Q4 FY24, resulting in PAT margins of 0.50%.
- Diluted EPS for the quarter was ₹0.46 per share.
- For Full Year FY25 (April 2024-March 2025):
- Revenue from operations was ₹537.9 crore, down 13.5% from ₹621.5 crore in FY24.
- EBITDA decreased by 36.1% to ₹42.8 crore from ₹67.0 crore in FY24, with margins at 7.96%.
- PAT for the year was ₹22.0 crore, a decline of 45.7% from ₹40.5 crore in FY24, with PAT margins at 4.09%.
- Diluted EPS for FY25 was ₹16.88 per share.
- Operational Highlights:
- The decline in Q4 FY25 EBITDA margins was primarily due to relatively higher raw material costs as a percentage of sales.
- In Q4 FY25, the company processed 14,784 M.Tons and sold 12,146 M.Tons of material.
- A 22% customs duty, effective 14 September 2024, on raw material for Dimer Acid production raised costs, which could not be fully passed on due to competition from Chinese suppliers not subject to the additional duty.
- Domestic sales contributed 91.40% and exports 8.60% to total revenue in FY25.
- Management Outlook:
- The company remains optimistic about its high-value product, Isostearic Acid, with export volumes expected to increase gradually from the first half of FY26 and further in the second half.
- Dividend:
- The company recommended a dividend of 75% for FY25.