Refnol Resins Posts Strong Revenue Growth and Returns to Profitability
The chemical maker's revenue grew 12.3% year-on-year, while profit swung from a loss to a positive figure, signaling a quarterly recovery.
Refnol Resins reported a 12.3% YoY rise in revenue to ₹18.65 crore for Q1 FY24. The company also swung to a quarterly profit of ₹0.25 crore, marking a significant sequential improvement.
Refnol Resins & Chemicals delivered a quarter of robust top-line growth and a welcome return to profitability for the three months ended June 2023. While the company's revenue expanded healthily, the more notable story is a sharp sequential recovery in its bottom line.
Revenue for Q1 FY24 reached ₹18.65 crore, a 12.3% increase compared to the same quarter last year and a 10.9% rise from the previous quarter. This sustained sales momentum is a positive sign for the textile and polyester chemicals maker. More importantly, profit after tax (PAT) came in at ₹0.25 crore, a significant turnaround from the loss of ₹0.30 crore in Q1 FY23 and a 212.5% jump from the ₹0.08 crore profit in Q4 FY23. This pushed the net profit margin into positive territory at 1.3%, a substantial improvement from -1.8% a year ago.
The recent quarterly performance shows a clear trajectory of stabilization after a volatile period.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY24 | PreviousQ4 FY23 | Same quarter LYQ1 FY23 |
|---|---|---|---|
| Revenue (₹ Cr) | 18.65YoY +12% | 16.81 | 16.60 |
| Profit (₹ Cr) | 0.25YoY +183% | 0.08 | -0.30 |
| Net Profit Margin (%) | 1.3YoY +172% | 0.5 | -1.8 |
Key Points
- The trailing twelve-month (TTM) revenue stands at ₹66.62 crore with a slim TTM profit of ₹0.08 crore.
- The company maintains a conservative balance sheet with a low debt-to-equity ratio of 0.31.
- The stock trades at a significant premium to its industry, with a P/E of 354.7 compared to the chemicals sector average of 40.5.
This quarter's results mark a step forward from the losses reported in the full FY23 financial year. The focus now shifts to whether Refnol Resins can sustain this positive profit momentum and translate it into more consistent annual earnings.
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· REFNOL RESINS
(BSE)
ISIN: INE428C01011
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