Largest Textile Chemical Company Board Approves Final Dividend of 25 Per Cent; Capacity Expansion Of 13,000 MTPA and Reports 22.60 Per Cent Revenue Growth
With a PE ratio of 28.7x, the company trades at a discount compared to the industry PE of 30x.
The Board of Directors of Rossari Biotech Limited convened a meeting on Friday, April 25, 2025. The board approved the audited financial results and statements, both standalone and consolidated, for the quarter and financial year ended March 31, 2025. This included the audited financial statements for the financial year ended March 31, 2025, along with the Auditor's Report, which had an unmodified opinion.
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A final dividend of 25 per cent (i.e., Re. 0.50/- per share) on equity shares with a face value of Rs. 2/- each for the financial year ended March 31, 2025, was approved. The dividend will be paid or dispatched within 10 working days from the conclusion of the 16th Annual General Meeting, pending approval from the company's members. Information regarding the book closure and record date for the dividend payment will be announced separately.
The Board of Directors also approved the appointment of M/s. Shah Patel & Associates, Practicing Company Secretaries, Mumbai, as the Secretarial Auditor of the Company.
Furthermore, the board approved the grant of 834,250 Stock Options under the Rossari Employee Stock Option Plan - 2019. Additionally, 2,825 Equity Shares of Rs. 2/- each were allotted to grantees under the same plan. Following this allotment, the issued and paid-up equity share capital of the Company increased to Rs. 11,07,33,182, consisting of 55,366,591 Equity Shares of Rs. 2/- each. The Board also reviewed and discussed growth and expansion opportunities, approving a capacity expansion. This expansion will add 13,000 MTPA and is expected to be completed by the 4th Quarter of FY 2025-26, funded through a mix of internal accruals and debt, with an investment of Rs. 95 Crores.
In the Quarterly Results of March 2025, the company reported a revenue of Rs 579.56 crore, reflecting a YoY growth of 22.60 per cent compared to Rs 472.72 crore in March 2024. The operating profit stood at Rs 69.49 crore, marking a 9.28 per cent increase from Rs 63.59 crore in the same quarter last year. The profit after tax (PAT) increased by 0.91 per cent to Rs 34.44 crore from Rs 34.13 crore in March 2024.
In FY24, the company posted a revenue of Rs 2,080.29 crore, registering a 13.64 per cent growth compared to Rs 1,830.56 crore in FY24. The net profit for the year stood at Rs 136.38 crore, up 4.35 per cent from Rs 130.69 crore in the previous financial year.
Rossari Biotech Limited is a company incorporated in India. It is an ISO 9001:2015 & 14001:2015 Certified Company. The company's registered office is located at Rossari House, Golden Oak, LBS Marg, Surya Nagar, Opp. Mahindra Showroom, Vikhroli (West), Mumbai. Rossari Biotech Limited operates in the Home, Personal Care and Performance Chemicals, Textile Speciality Chemicals, and Animal Health and Nutrition sectors.
With a PE ratio of 28.7x, the company trades at a discount compared to the industry PE of 30x. The company has ROCE of 18.1per cent and ROE of 13.32 per cent. Investors must keep this stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.