Sumitomo Chemical India Ltd. reported a 20.5% year-on-year rise in its consolidated net profit for the quarter ended June, while revenue growth remained largely flat. The improvement in operating profitability and margins is likely to remain in focus for investors tracking the company's first-quarter performance.
The company posted a consolidated net profit of Rs 215 crore in the June quarter, compared with Rs 178 crore in the corresponding quarter last year.
Revenue Growth Remains Muted
Revenue from operations increased marginally by 0.6% year-on-year to Rs 1,063 crore, against Rs 1,057 crore reported in the year-ago period.
While the topline remained broadly stable, the company delivered stronger growth at the operating level during the quarter.
Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 6.4% to Rs 233 crore, compared with Rs 219 crore in the same quarter last year.
Margin Expands
Sumitomo Chemical India's Ebitda margin improved to 21.9% in the first quarter of fiscal 2027, up from 20.7% a year earlier. The expansion of 120 basis points indicates improved operating profitability despite limited revenue growth.
Investors will now track whether Sumitomo Chemical India can sustain the improvement in profitability over the coming quarters while accelerating revenue growth.
Share Price Movement
Shares of Sumitomo Chemical have gained 1.5% intraday on Monday, post the announcement of results. The stock is currently trading at Rs 528.3 apiece on NSE, up from its previous close at Rs 520.45.
In the past month, the stock rallied close to 24%.
Currently, the stock is trading at a price-to-earnings multiple of 47.8 times, while its market cap stood at 26,389.8 crore as at the end of the previous trading session.
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