Ashish Kacholia Portfolio: Specialty Chemical Stock Declares Q4 Results & Final Dividend For FY25

Fineotex Chemical Limited (FCL), one of India's largest multinational specialty performance chemical manufacturers, announced its financial results for the fourth quarter and full year ended March 31st, 2025.

Fineotex Chemical's net profit decreased 33.68% to Rs 19.97 crore in the March 2025 quarter from Rs 30.11 crore in the March 2024 quarter. Compared to Q4FY24, when sales were Rs 153.02 crore, they fell 21.72% to Rs 119.79 crore in Q4FY25.

In the year ending in March 2025, net profit decreased 9.68% to Rs 108.21 crore, compared to Rs 119.81 crore in the year ending in March 2024. Compared to Rs 568.97 crore in FY24, sales fell 6.26% to Rs 533.33 crore in the entire year ended in FY25. The company's total income dropped by 4.76% to Rs 557.64 Cr in FY25 from Rs 585.51 Cr in FY24. In FY25, its EBITDA was Rs 127.23 Cr, and its EBITDA margin was 23.85%.

"The Board has recommended a final dividend of Rs. 0.40/- per equity share (20% of face value of Rs. 2/- each) which amounts to Rs. 4,58,30,036/- (Rupees Four Crore Fifty Eight Lakhs Thirty Thousand and Thirty Six only) subject to the approval of members at the ensuing Annual General Meeting. The company had paid an interim dividend of Rs. 0.40/- per share during the FY 2024-25 and therefore the total dividend would be Rs. 0.80/- (40% of Face Value) per share for the FY 2024-25 amounting to Rs. 9,16,60,072/- (Rupees Nine Crore Sixteen Lakhs Sixty Thousand and Seventy Two only)," said Fineotex Chemical in a stock exchange filing.

The company's cash and cash equivalents and investments (apart from investments in subsidiaries) total Rs. 35,246.65 Lacs, while its consolidated Return on Capital Employed (ROCE) for FYE 2025 is around 23.56%. The company's new production facility is undergoing another exciting update. It is still on schedule and should be operational by Q2 of FY26.

Mr. Sanjay Tibrewala, Executive Director, Fineotex Chemical Limited said, "We ended FY25 on a stable footing, with steady performance in the textile chemicals segment and strong growth in newly diversified businesses. Despite a nuanced demand environment, our strategic direction remains clear, and we continue to execute with resilience and a long-term growth mindset. During the quarter, the textile chemicals segment remained stable, with sustained demand across key geographies. We added 30 new customers during fourth quarter, a testament to our expanding reach and trusted product performance. We also developed 15 new products, reinforcing our focus on innovation and our ability to respond swiftly to evolving customer requirements. While the FMCG, Cleaning & Hygiene segment witnessed a temporary softness in volumes, the underlying demand fundamentals remain intact, and we anticipate a pickup in the coming quarters."

"Our new business verticals - Water Treatment and Oil & Gas - delivered strong performance, with a substantial increase in both volumes and value contribution backed by a robust and growing order pipeline. Further, we are undertaking focused capital expenditure, promotional and brand-building initiatives. These investments are aimed at enhancing production capabilities, strengthening market presence, and accelerating customer acquisition in these fast-growing business segments. These business lines are expected to play an increasingly significant role in our revenue mix in the coming years," he added.

"A major milestone during the year was the government approval of AquaStrike Premium, our biotechnologybased mosquito control solution developed using Azadirachtin. This plant-based, sustainable innovation opens up growth opportunities in public health and institutional hygiene, both in India and emerging markets. Looking ahead, we are optimistic about the export environment. The India-UK Free Trade Agreement, is expected to improve market access, reduce trade barriers, and enhance our competitiveness in the UK and Europe, particularly for textile and specialty chemicals," Sanjay Tibrewala stated.
"To support our growth aspirations, we are pleased to report that our greenfield expansion is progressing as planned and will add 15,000 MTPA of capacity, increasing our total installed capacity to 1,20,000 MTPA expected to commence operations in Q2 FY26. With a diversified product portfolio, strong demand pipeline, growing international reach, and a healthy balance sheet, we remain confident in our strategic roadmap and we are well-positioned to deliver consistent, long-term value to all stakeholders," Sanjay Tibrewala highlighted.

One of the top multinational specialized performance chemical producers in India, Fineotex Chemical Limited offers sustainable technology-driven solutions to a variety of industries, including the oil and gas, clean and homecare, and textile and garment processing sectors. During the quarter that ended in March 2025, Ashish Kacholia, an active investor, held 31,35,568 shares in the corporation, or a 2.74% stake in the corporation.