Saturday, May 31, 2025

Vipul Organics Q4 Profit Dips 46% Amid Rising Costs

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Vipul Organics Limited, a specialty chemicals company based in Mumbai, reports a 45.69% drop in net profit for the Q4 (fourth quarter) of FY 2024-25. The company earns Rs 0.78 crore in Q4, down from Rs 1.44 crore in the previous quarter. The drop comes despite an increase in revenue and total income, mainly due to rising costs.

Revenue Sees Growth

The company’s revenue from operations grows 6.47% to Rs 44.08 crore in Q4, compared to Rs 41.4 crore in Q3. Total income also increases 5.88% to Rs 43.97 crore, up from Rs 41.53 crore in the earlier quarter. This growth shows positive sales momentum in the final quarter of the fiscal year.

Despite the rise in revenue, total expenses climb 7.83% to Rs 42.81 crore in Q4, compared to Rs 39.70 crore in Q3. These increased costs reduce the company’s overall profit, leading to the sharp decline in net earnings. Rising input prices and operational costs continue to challenge the bottom line.

Full-Year Growth Remains

For the full financial year 2024-25, Vipul Organics reports total revenues of Rs 163 crore. According to Managing Director Vipul P. Shah, the company achieves an 8% topline growth along with a 33% increase in profit after tax for the year. He credits cost-cutting measures and better operational efficiency for the improved annual performance.

The company is currently developing a new greenfield manufacturing facility in Sayakha, Gujarat. The first phase of this plant is expected to become operational in the third quarter of FY 2025-26. Once online, this unit is expected to contribute significantly to revenue growth in the coming years.

Strong Global Presence

Vipul Organics operates two existing manufacturing units in Maharashtra and exports its products to over 45 countries. It is a major player in the pigments and dyes market and produces a wide range of products, including lake colours and pigment intermediaries. The company’s international reach and upcoming capacity expansion are key to its long-term growth strategy.

While the Q4 profit decline highlights short-term challenges, the company’s annual growth and new projects signal long-term potential. Vipul Organics remains focused on improving margins and scaling its global presence through better infrastructure and efficient production.

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