EBITDA has improved to some extent, from 42 Crores in FY 2023-24 to 61.81 crore in FY 2024-25, but Profit after Tax has remained negative. Yield improvements, better capacity utilisation, and cost reductions are some of the areas on which our team has begun to focus, and we will continue to strengthen these efforts in the years ahead.
I am pleased to present our FY 2024-25 Annual Report. The period was marked by its steady course correction. The first half of the fiscal tested our preparedness with fluctuating input prices and muted demand. During this time, we focussed on our core chemistries and improved process stability across all sites. However, in the second half of the fiscal, demand improved across dyes, pigments, agrochemicals, and pharmaceutical sectors, bringing in some relief.
Hence, our journey during the fiscal is communicated through the theme ‘Turning the Tide. Rebuilding Momentum.’ This reflects our decisive actions, strengthening supply chain, and process optimisation. These measures, in turn, improved margins and restored financial health, which helped us position ourselves to aim for scale and growth in the next phase of our journey.
In FY 2025, the global economy was being weighed down by inflationary pressure and supply chain realignments. Commodity markets were marked with price fluctuations, and trade flows adjusted to shifting geopolitical priorities. The fiscal saw India’s GDP grow by 6.5% during the year, on the back of infrastructure creation, rising domestic consumption, and an enabling policy framework. These conditions established a stable base for sectors linked to manufacturing and exports, including specialty chemicals.
Specialty chemicals in India maintained its global growth position, with the sector valued at US$ 6,450 crore and projected to reach US$ 9,260 crore by 2033. Capacity expansion, backward integration, and export diversification helped the industry capture demand from both domestic and overseas markets. The China+1 approach of global buyers shifted sourcing patterns in favour of India.
However, US tariffs of 50% are expected to have an adverse impact on exports to the US. On the other hand, the Russian and Chinese markets may open up to some extent.
We operate from a position of strength within India’s specialty chemicals sector. Our stronghold in the market is enabled by leadership in the core chemistries such as chlorination, ammonolysis, and hydrogenation. Our integrated operations and backward links secure raw material supply and improve value capture. Strategic locations near ports support cost-efficient logistics and timely deliveries to domestic and global customers.
During the year, stabilisation of Para Amino Phenol production and quality enhanced our portfolio. Additionally, it also strengthened our customer relationships in the pharmaceutical segment.
Chlorination and ammonolysis lines generated strong off take from agrochemicals, dyes, and pigments. Operational improvements across sites, supported by disciplined supply chain management, have created a leaner, more responsive structure to address emerging demand.
Our focus during FY 2024-25 was on building operating strength and aligning capacity with market opportunities. We have debottlenecked our key processes to improve throughput and reduce cycle times. Additionally, backward integration initiatives secured critical intermediates on one hand, while forward integration supported entry into higher-value segments on the other.
Cost control remained a priority for us. We consolidated transport partners, optimised shipment planning, and strengthened long term sourcing arrangements for better pricing stability. By improving energy efficiencies in boilers and utility systems, we have successfully reduced our energy consumption during the year. With the help of real time sampling and in-process checks, we have been able to improve product quality and reduce batch release time.
Customer engagement stayed strong through consistent delivery performance and technical support. These measures improved margins and prepared our operations for higher utilisation in the near future. Our integrated model, diversified end-use exposure, and continuous process optimisation is expected to guide our strategic actions, going forward.
FY 2024-25 was a year of operational recovery and financial improvement for us. Stable revenue at 718.8 crore showcased steady demand in the second half after a muted start to the fiscal. The impact of process stabilisation and disciplined cost control was visible in our operating performance.
We view responsibility as a shared commitment to our stakeholders, our communities, and the environment. This guides our operations, investments, and engagements with people and community. We focus on building processes that use resources wisely, ensure safe workplaces, and support the communities around our sites. These choices are shaped by a belief that business growth and social progress move together. Every step we take, whether in efficiency, innovation, or outreach, is aimed at creating value that endures. Integrating responsibility into our decisions enabled us to deliver consistent performance while contributing to the long-term wellbeing of all connected to our journey.
We enter FY 2025-26 with stronger operations, a sharper focus on our core chemistries, and a clear growth blueprint. Higher capacity utilisation, an optimised product mix, and steady customer demand give us the base to improve performance. We will continue to invest in process efficiency, integration, and technology to strengthen our competitiveness in both domestic and global markets.
Our progress is the result of the commitment shown by our people and the trust of our stakeholders. We value this support and see it as the driving force behind our journey. Together, we will build on the momentum achieved this year and move forward with purpose, creating sustainable value for customers, employees, partners, and shareholders.
Warm Regards,
Managing Director