The shares of GHCL Ltd. was trading at Rs.388.80, up by 8.2%, hitting a 52 week high of Rs.397.70 in today’s trading session.
The stock price has increased by 44.43% in last one month, while the benchmark index S&P BSE Sensex has increased by 0.20%.
The stock rallied after the company has announced its financial results for Q1 FY22.
Revenue increased sequentially, with revenue for the quarter standing at Rs 854 cr, up from Rs 821 cr in Q4 FY21 and Rs 440 cr in the same quarter last year.
Ebitda margins increased year on year to 22.1% from 19.1%. In Q4FY21, the EBITDA margin was 23.8%.
EBITDA for the quarter stood at Rs 189 cr, down from Rs 195 cr in Q4 FY21 and Rs 84 cr in the same quarter last year.
Net profit margins were 12%, and net profit for the quarter was Rs 101 cr, compared to Rs 104 cr in Q4 FY21 and Rs 17 cr in the same quarter last year.
The revenue from the Inorganic Chemicals division is Rs 527 cr in Q1 FY22, compared to Rs 531 cr in Q4 FY21 and Rs 346 cr in the corresponding quarter in FY21.
The revenue from the Home Textiles business is Rs 327 cr in Q1FY22, compared to Rs 290 cr in Q4 FY21 and Rs 94 cr in the previous quarter.
R S Jalan, who is the Managing Director of GHCL, commented on the financial performance, saying, “We have begun the new fiscal year on an encouraging note with substantial gains across all of our business segments.” This was possible despite severe disruptions in Q1 due to localised restrictions and lockdowns caused by the pandemic’s second wave.
Our Inorganic chemicals business grew at a healthy rate, with positive realizations supported by consistent demand in key end user categories. The management believes this positive trend will continue as demand stabilizes, and are also looking to expand portfolio to include some products that will allow leveraging the scale and expertise.
The company received consent from secured creditors for the textile demerger, and will now seek approval from the honorable NCLT. The business experienced initial temporary disruption in the textile business due to the second wave of COVID, but this has now been normalized, and is now operating at peak utilization levels in both spinning and home textiles based on a strong demand scenario, and has achieved record profits during the quarter.
Overall, the objective is to strengthen the leadership position across key product categories in order to boost performance momentum and create more value for the stakeholders.
GHCL Limited was founded in 1983, and has since established itself as a well-diversified group. It has established its presence in the Chemicals, Textiles, and Consumer Products segments. The company is primarily engaged in two segments: inorganic chemicals and home textiles.
For more fundamental data and analysis, click on GHCL Ltd.
Disclaimer: This document and the process of identifying the potential of a company have been produced for only learning purposes. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.