Vinati Organics Ltd

The new entity was incorporated on 13 February 2025, with an authorized share capital of 5,000 shares at $100 par value each. The US subsidiary will focus on the processing, distribution, and sale of chemical solutions, including raw material acquisition and processing into finished goods. The company has initially subscribed to 10 shares at $100 per share in cash consideration, maintaining 100% ownership of the subsidiary. The expansion aligns with Vinati Organics' strategy to explore opportunities in the US market and enhance its specialty chemicals business presence. The subsidiary's incorporation complies with India's Foreign Exchange Management Regulations, Reserve Bank of India guidelines, and applicable US regulatory requirements. This development follows the company's earlier announcement on February 1, 2025, regarding its plans to establish a US subsidiary. The new entity will also handle the manufacturing and sale of Vinati Organics' products in the US market. Vinati Organics is one of India's leading manufacturers and exporters of specialty organic intermediaries, monomers, and polymers. On a consolidated basis, Vinati Organics's net profit gained 21.78% to Rs 93.70 crore in Q3 FY25 as against Rs 76.94 crore in Q2 FY25. Revenue from operations spiked 16.44% to Rs 521.68 crore in Q3 FY25 over Q2 FY25. Shares of Vinati Organics declined 3.63% to Rs 1,533.20 on the BSE.Powered by Capital Market - Live

Net profit of Vinati Organics rose 21.78% to Rs 93.70 crore in the quarter ended December 2024 as against Rs 76.94 crore during the previous quarter ended December 2023. Sales rose 16.45% to Rs 521.68 crore in the quarter ended December 2024 as against Rs 447.99 crore during the previous quarter ended December 2023. ParticularsQuarter EndedDec. 2024Dec. 2023% Var. Sales521.68447.99 16 OPM %27.2925.59 - PBDT148.94122.47 22 PBT126.62103.14 23 NP93.7076.94 22 Powered by Capital Market - Live

On a consolidated basis, Vinati Organics's net profit gained 21.78% to Rs 93.70 crore in Q3 FY25 as against Rs 76.94 crore in Q2 FY25. Revenue from operations spiked 16.44% to Rs 521.68 crore in Q3 FY25 over Q2 FY25. PBT jumped 22.76% to Rs 126.62 crore in Q3 FY25 over Q2 FY25. On a year-on-year basis, the company's consolidated net profit fell 10.21% while revenue from operations tumbled 5.71% in Q3 FY25. PBT slipped 5.18% YoY. Total expenses dropped by 9.10% to Rs 401.73 crore in the third quarter from Rs 441.99 crore recorded in the same period last year. This was primarily due to lower raw material costs (down 13.99% YoY) and lower power and fuel costs (down 4.61% YoY). Vinati Organics is one of India's leading manufacturers and exporters of specialty organic intermediaries, monomers, and polymers.Powered by Capital Market - Live

Vinati Organics will hold a meeting of the Board of Directors of the Company on 1 February 2025.Powered by Capital Market - Live

Vinati Organics has appointed Amit Thanawala (DIN: 10864545) as an Additional Director designated as Whole Time Director of the Company with effect from 13 December 2024, for a term of 5 (Five) consecutive years, subject to the approval of the shareholders. Powered by Capital Market - Live

Vinati Organics announced that Jayesh Ashar (DIN: 00041532) has tendered his resignation as a Whole Time Director of the Company, with effect from 02 December 2024.Powered by Capital Market - Live

Net profit of Vinati Organics rose 44.06% to Rs 104.36 crore in the quarter ended September 2024 as against Rs 72.44 crore during the previous quarter ended September 2023. Sales rose 19.53% to Rs 553.32 crore in the quarter ended September 2024 as against Rs 462.93 crore during the previous quarter ended September 2023. ParticularsQuarter EndedSep. 2024Sep. 2023% Var. Sales553.32462.93 20 OPM %24.1722.63 - PBDT155.87114.46 36 PBT133.5497.15 37 NP104.3672.44 44 Powered by Capital Market - Live

Vinati Organics will hold a meeting of the Board of Directors of the Company on 12 November 2024Powered by Capital Market - Live

Vinati Organics has subscribed to the additional 4,26,48,200 fully paid-up equity shares of the face value of Rs 10/- each at par, amounting to Rs 42.64 crore by way of subscription towards the rights issue of Veeral Organics, a wholly owned subsidiary, the shares rank pari-passu to existing equity shares of the company.Powered by Capital Market - Live

The agency has also affirmed the company's short-term rating at 'CARE A1+'. CARE Ratings stated that the ratings assigned to bank facilities of Vinati Organics (VOL) draw significant comfort from its market leadership in its two key products, 2-acrylamido-2-methylpropane sulfonic acid (ATBS) and isobutyl benzene (IBB) ' in the global market. CARE Ratings believes that VOL's competitive advantage in both its product segments is expected to sustain in the medium term, as the manufacturing processes are not easy to replicate, and the same acts as an entry barrier for new entrants. Ratings continue to derive strength from the long-track record and experience of the promoters in the speciality organic chemical industry. VOL continues to benefit from long-term relationship with an established and reputed clientele across geographies. The backward integrated manufacturing process with zero discharge and VOL's cost-efficient operations acts as an entry barrier for new entrants. Ratings derive strength from the healthy cash flows from operations, the favourable capital structure, strong liquidity, and debt coverage indicators. Ratings continue to be tempered by the concentration of its total operating income (TOI) from limited key products and VOL's operating margin susceptible to raw material price and foreign exchange fluctuations. The credit rating agency said that significantly growing TOI on the back of increased demand from the existing products and effective diversification in product profile while maintaining an operating margin of around 27-30% could lead to a positive rating action. However, factors like significant debt-funded organic or inorganic expansion undertaken by the company that will adversely impact its capital structure and weakening of its return on capital employed (ROCE) below 15% having an adverse impact on its debt coverage indicators could lead to a negative rating action. Vinati Organics is one of India's leading manufacturers and exporters of specialty organic intermediaries, monomers, and polymers. VOL is the world's largest manufacturer of isobutyl benzene (IBB) and 2-Acrylamido 2-Methylpropane Sulfonic Acid (ATBS). The scrip shed 0.14% to currently trade at Rs 1989.95 on the BSE. Powered by Capital Market - Live