Sudarshan Chemical Industries (SCIL) showcased financial progress on Thursday, with a notable surge in the performance of its Pigment division, according to a research report released by Sharekhan today. The firm's total revenue reached ₹601 crore, marking a year-on-year increase of 3%, despite a slight dip in the operating profit margin (OPM) of 51 basis points to 11.3%.
The Pigment division emerged as a key growth driver for SCIL, recording an impressive 10% annual growth. This was primarily fueled by a significant surge in domestic revenues, which hit ₹272 crore (INR100 crore = approx. USD12 million). This substantial increase significantly overshadowed the minor 3% rise in export revenue.
However, not all financial aspects performed at the same level. The Profit After Tax (PAT) was reported at ₹18 crore, underperforming by 11% from the expected figure. Despite this, the overall financial advancement demonstrated by SCIL signifies promising developments within the firm's operations and market reach.
InvestingPro Insights
In line with the financial progress of Sudarshan Chemical Industries (SCIL), InvestingPro data and tips offer additional insights. SCIL's strong earnings, as evidenced by the surge in its Pigment division's performance, align with InvestingPro Tip: Strong earnings should allow management to continue dividend payments. This is further supported by the fact that SCIL has maintained dividend payments for 29 consecutive years, a testament to its financial resilience.
InvestingPro data further highlights SCIL's position as a prominent player in the Chemicals industry. The company's impressive gross profit margins and high return on assets corroborate the firm's financial advancement and its potential for continued growth.
Finally, SCIL's current trading at a low earnings multiple suggests potential for investment. For more insights like these, InvestingPro offers a total of 11 tips for SCIL, aiding investors in making informed decisions.
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