Mumbai: Diversified Godrej Industries saw a 43% jump in March quarter net profit as a focus on high margin speciality oleochemicals boosted growth, a top official said on Monday.
“Speciality chemicals is a high margin business than our traditional commodity business, so we are focussing more on that going forward,” Adi Godrej, chairman said.
The company manufactures oleochemicals, which are made from vegetable oils and used in various industries.
The company, which makes industrial chemicals, holds stakes in other group firms such as Godrej Consumer , Godrej Properties , Godrej Agrovet and Godrej Hersheys.
Godrej enjoys a 40% revenue share in its chemicals business from overseas and the remaining is from the domestic market.
Godrej posted an 88% jump in standalone net profit to Rs 50.6 crore in the quarter ended March.
It’s consolidated net profit rose to Rs 109 crore from Rs 76.4 crore a year ago and saw a 41% jump in net sales to Rs 1367 crore for the March quarter.
The company is also in the process of raising capacity of its speciality oleochemicals. In January, Godrej Industries also said it will spend Rs 52 crore to expand its fatty acid manufacturing capacity at Gujarat and plans to fund the expansion via a mix of internal accruals and debt.
Last fiscal, the firm had earmarked a capex of Rs 220-250 crore to set up a new oleochemical manufacturing plant at Ambernath in Maharashtra, which will be operational by FY13.
The company has also lined up significant investments in its oil palm plantation business and its agri businesses under Godrej Agrovet, Godrej said, but did not disclose details of the investment.
Shares of the company ended 2.15% up at Rs 185.35 the Bombay Stock Exchange.