Profit before tax in Q2 FY24 stood at Rs 44.81 crore, registering a growth of 33.3% from Rs 33.62 crore recorded in the corresponding quarter previous year.

Total expenses rose 12.04% YoY to Rs 440.04 crore during the quarter. Cost of materials consumed stood at Rs 355.63 crore (up 36.15% YoY) while employee benefit expenses came in at Rs 27.53 crore (up 14.04% YoY) in Q2 FY24.

EBITDA was at Rs 63.6 crore in the September quarter, up 13% as against Rs 56.5 crore posted in Q2 FY23. EBITDA margin reduced to 13.2% in Q2 FY24 as compared to 13.3% registered in Q2 FY23.

Meanwhile, the company announced its capacity expansion plans at Dahej Facility. The project is anticipated to entail an investment of Rs 50 crore.

Further, the firm has also announced an expansion at Dahej Facility of Unitop Chemicals. An investment of Rs 128 crore is expected to be required for the project.

The company said that both the projects are expected to be commissioned in a phased manner by Q3 FY25. Funding will be sourced through a blend of the company's internal accruals and external borrowing, it added.

Edward Menezes, promoter & executive chairman, and Sunil Chari, promoter & managing director, said, "The flag bearers for this strong performance were our core HPPC and TSC division. While HPPC grew by 21%, TSC was up 5% in revenue as compared to the corresponding quarter in the previous year. In the AHN division, we witnessed subdued performance due to seasonal softness in demand.

After encountering certain challenges in the previous year, we are encouraged to observe renewed momentum in our core HPPC offerings during the quarter. This positive trajectory highlights the efforts put in by our team to drive growth in a challenging operating environment.

In a strategic move towards future readiness, we are excited to announce an expansion of our facility at Dahej, to foray into products related to HPPC in the specialty chemical space, as well as for producing ingredients for our subsidiary companies. Also, to cater to the growing demand in agro chemicals, home and personal care, oil & gas and the pharma sector, we are further expanding the Ethoxylation capacity at the Dahej facility of Unitop Chemicals Private Limited.”

Rossari Biotech is a specialty chemical manufacturer and offers tailor-made solutions for home, personal care and performance chemicals (HPPC), textile speciality chemicals and animal health and nutrition (AHN).

Shares of Rossari Biotech declined 1.58% to Rs 808.60 on the BSE.