Platinum Industries Ltd. Reports Strong Q1 FY2025 Performance with 66% Revenue surge and 56% Increase in PAT

MUMBAI, India, Aug. 13, 2024 /PRNewswire/ -- Platinum Industries Ltd., a global leader in the manufacturing of PVC and CPVC additives and notably the third-largest player in India's PVC stabiliser market (Source: CRISIL Report), is pleased to announce its financial results for the first quarter of the fiscal year 2024-25, ending June 30, 2024. The Company has achieved a remarkable milestone by exceeding the ₹1000 million revenue threshold in a single quarter for the first time, marking the highest consolidated revenue since its founding.

Key Consolidated Financial Highlights for Q1 FY2025 

Revenue From Operations: Platinum reported consolidated revenues of ₹1,026.55 million, a significant 66% increase from ₹619.16 million in Q1 FY2024. This achievement signifies not only the first time the Company has surpassed the ₹1000 million mark in a quarter but also underscores the strongest revenue performance in its history. The growth was driven by a 40% increase in export sales and a 27% rise in domestic sales, underscoring our robust export capabilities and overall solid market performance.

Gross Profit: The consolidated gross profit for the quarter was ₹339.56 million, representing a 33% increase from ₹254.68 million in the same period last year. Although the gross margin percentage decreased to 33.08% from 41.13%, this reduction is attributed to higher costs of raw materials, increased shipping expenses thereon and introduction of new products in the market. Despite these factors, the increase in gross profit highlights our strong operational efficiency.

EBITDA: The Company reported an EBITDA of ₹204.68 million, marking a strong 26% increase from ₹161.90 million in Q1 FY2024.

EBITDA Margin: The EBITDA margin in Q1 FY2025 decreased by 621 basis points to 19.94%, down from 26.15% in Q1 FY2024, despite a 26% rise in EBITDA. This decline is primarily attributed to the introduction of new products aimed at market penetration. Additionally, an unprecedented increase in shipping costs has impacted raw material prices. We expect the impact of these elevated shipping costs to be temporary, with a correction anticipated in the near future.

Profit Before Tax (PBT): Platinum posted a Profit Before Tax of ₹238.96 million, up 58% from ₹150.82 million in the previous year. The PBT margin is 23.28%, marginally lower than the 24.36% recorded last year.

Profit After Tax (PAT): The Profit After Tax for the quarter was ₹177.38 million, an impressive 56% increase from ₹113.95 million in Q1 FY2024. The PAT margin marginally reduced to 17.28% from 18.40% last year.

Earnings Per Share (EPS): The EPS for the quarter stood at ₹3.19, reflecting a 12% increase from ₹2.86 in Q1 FY2024.

Mr. Krishna Rana, Chairman and Managing Director of Platinum Industries, commented, "We take great pride in reaching a significant milestone, as our consolidated revenues have surpassed ₹1000 million in a single quarter for the first time in our history. This record performance, along with solid growth in EBITDA and PAT, reflects the success of our strategic initiatives and strong market presence. Despite some margin pressures, our focus on operational excellence and market expansion has driven these results."

Looking ahead, Mr. Rana added, "The Company is making substantial progress on key strategic initiatives, including expanding lead-free capacity, automating operations, and introducing energy-efficient processes to reduce production costs. We are also intensifying our efforts in the export market. As we journey through FY2025, our primary focus is securing additional market share for the upcoming scaled capacity and managing product pricing. We are actively expanding our customer base and product offerings to meet these targets and sustain our momentum."

Operational Updates:

Exports: In Q1 FY25, export sales soared by 40%, making up 10% of total revenues. This strong performance underscores the Company's growing global market presence and successful penetration into key international markets. Fuelled by a targeted geographic diversification strategy and ongoing product enhancements, the Company is actively driving new sales to capture additional market share. These efforts are strategically aligned with the upcoming capacity expansions, reinforcing the Company's commitment to broadening its export footprint and capitalizing on new growth opportunities.

Capacity Expansions: Progress on the new manufacturing facilities is advancing as scheduled. The Palghar plant is expected to commence operations within FY24-25, which will immediately increase production capacity. Similarly, the Egypt facility remains on track, with operations anticipated to begin in Q2 of FY25-26. These expansions are projected to enhance the Company's production capabilities significantly, positioning it to meet growing demand and support strategic objectives in domestic and international markets.

Intellectual Capital: The Company reports significant progress in its R&D efforts during Q1FY25. Its state-of-the-art R&D centre, equipped with advanced analytical and application testing facilities, has focused on developing new additives for the PVC/Polyolefin industry, CPVC additives, and Oleochemical derivatives. These innovations are expected to expand the product range and enhance market competitiveness. As these developments approach commercialisation, they are anticipated to strengthen the Company's market position and drive future growth, reaffirming Platinum Industries' commitment to innovation and industry leadership.

Leadership Update: Platinum Industries Ltd. is pleased to announce the appointment of Mr. Gyandeep Mittal as Chief Financial Officer (CFO). A Chartered Accountant since 2006, Mr. Mittal brings nearly 20 years of experience across the manufacturing, logistics, and service sectors. With over five years in leadership roles, he has demonstrated a strong track record in strategic planning and operational efficiency. His expertise encompasses finalizing and consolidating accounts, direct and indirect taxation, legal compliance, corporate finance, mergers and acquisitions, ERP implementation, and multi-currency treasury management. Mr. Mittal has consistently supported company growth, managed investor and stakeholder relationships, and successfully led change and conflict management initiatives.

About Platinum Industries Ltd.

Platinum Industries Ltd. is a premier multi-product company in the speciality chemicals sector, specialising in PVC & CPVC Additives, Metal Soaps and lubricants. As India's leading PVC stabiliser manufacturer, Platinum supplies to over 30 countries from its ISO 9001:2015 certified facility in Palghar, Maharashtra, strategically located near JNPT Port for efficient import and export operations. The Company's product range includes lead stabilisers, Hybrid™ low lead stabilisers, Highstab™ Ca-Zn/Ca-Org stabilisers, CPVC compounds, CPVC Add Packs, Metal Soaps and various lubricants, which are used in PVC pipes, fittings, profiles, electrical wires and cables, SPC floor tiles, Roofing and packaging materials.

According to the CRISIL Report, Platinum Industries holds a 13% market share, making it the third-largest player in the domestic PVC stabiliser market for FY 2022-23. Platinum's commitment to innovation is reinforced by a technical collaboration with HMS Concept E.U., led by Dr. Horst Michael Schiller. Additionally, an in-house R&D facility in Dhansar, Palghar, drives continuous product development. The Company's substantial domestic market share, innovation, sustainable growth practices, and strategic global expansion plans, including new facilities in Egypt and Palghar, solidify its status as a market leader with a team of 104 people in Mumbai, India.