Vinati Organics sees capacity utilisation improving in FY25, stable margins

Vinati Organics, a speciality chemical maker, on November 9 reported a 27.4% decline in net profit for the July-September 2024 quarter to ₹84.16 crore from ₹115.93 crore in the year-ago period.  The company's revenue during the quarter fell 20.9% to ₹448.13 crore against ₹566.29 crore in the previous year.

Vinati Saraf Mutreja, MD, Vinati Organics says the numbers will look better in the second half once the financials of subsidiary Veeral Organics are consolidated.

Mutreja noted a decrease in the volumes, attributing it to a reduction following an exceptional previous year marked by high purchasing. She explained that by March and April, customers had accumulated excess inventory, leading to a period of destocking that is expected to persist into December. This inventory adjustment is the primary reason for the projected 15-20% decline in the bottom line.