⚡ Flash Summary
Sitara Chemical Industries Limited (SCIL) reported its FY 2024-25 financial results, showcasing growth in revenue and profitability. The company’s revenue increased by 4.56% to Rs. 32,530 million. Net profit saw a substantial rise of 60.42% reaching Rs. 939 million, driven by efficient operations and cost management. The company’s expansion plans, particularly the commissioning of the 50 MW Coal Fired Power Plant, are expected to further bolster its performance.
📌 Key Takeaways
- 📈 Revenue increased by 4.56% to Rs. 32,530 million in FY25 from Rs. 31,110 million in FY24.
- 💰 Gross profit increased by 14.22% to Rs. 5,619 million in FY25.
- ✅ Net profit surged by 60.42% to Rs. 939 million in FY25.
- ⭐ Earnings per share (EPS) increased by 60.42% to Rs. 43.83 in FY25.
- 🏦 EBITDA grew by 9.38% to Rs. 5,295 million in FY25.
- ✔️ The company declared a cash dividend of Rs. 11.00 per share, a 10% increase.
- 🏭 Chemical division has a Caustic soda manufacturing capacity of 630 MT per day.
- ⚡ VIS Credit Rating Company reaffirmed SCIL’s ratings at A+ (Long-Term) and A-2 (Short-Term).
- 🌱 Real GDP growth recorded at 2.68% in FY 2025 vs. 2.38% in similar period of FY 2024
- 📉 Average inflation dropped to 4.7% (Jul-Apr FY 2025) from 26.0% last year.
- 🌿 The 50 MW Coal Fired Power Plant is in the commissioning phase and expected to be operational soon.
- ⚠️ Key challenges include potential increases in natural gas/RLNG and international coal prices.
🎯 Investment Thesis
BUY. SCIL’s strong financial performance in FY25, coupled with its strategic expansion plans, makes it a compelling investment. The increase in revenue, net profit, and EPS indicates robust growth potential. The commissioning of the 50 MW Coal Fired Power Plant is expected to improve operational efficiency and reduce energy costs. A price target of Rs. 600 within a 12-month horizon is justified based on expected earnings growth and improved market conditions.
Disclaimer: AI-generated analysis. Not financial advice.