India Glycols

India Glycols manufactures green technology based bulk, specialty and performance chemicals and natural gums, spirits, industrial gases, sugar and nutraceuticals. Using the molasses-ethyl alcohol-ethylene 'green route', the company is the only one of its kind in the world.

Despite lower sales, higher realisations, lower costs, lower interest outgo helped the company end Q1Fy16 with a net profit of Rs.8 crore v/s Rs.1 crore in previous Q1 and a loss of Rs.3 crore in Q4. Net sales for the quarter was down 3% (YoY) at Rs.699 crore. Total costs came down 8%. EBITDA for the quarter was up 63% and margin rose from 6.38% v/s 10.73%. The company has two segments – industrial chemicals, which contributes 87% to turnover and it showed a 45% (YoY) increase in EBIT. The other segment is ethyl alcohol which showed a 28% rise in EBIT.

The good thing about the rise in bottomline is that it has come despite Rs.9.45 crore exceptional expense due to reinstatement of forex borrowings. Tax out go for the quarter was at Rs.3.5 crore due to deferred tax v/s Rs.64 lakh in previous Q1.  Interest outgo has come down from Rs.44 crore to Rs.38 crore (YoY).