Bodal chemicals

**Bodal Chemicals has experienced a significant surge in its stock price and financial performance following the Indian government's imposition of anti-dumping duties on Trichloro Isocyanuric Acid (TCCA) imports from China and Japan.** This development has had a positive impact on the company's revenue and profitability, but also highlights some challenges and mixed financial performance.

1. **Impact of Anti-Dumping Duties**:
- The anti-dumping duties, ranging from USD 766-986 per metric ton for Chinese producers and USD 276/MT for Japanese producers, have led to a 16% surge in Bodal Chemicals' stock price to Rs 65.71.
- These duties, effective for five years, are aimed at protecting domestic manufacturers like Bodal Chemicals from material injury caused by below-normal-value imports.
- The additional revenue generated by these duties, estimated to be Rs 50-60 crore per annum, is expected to improve the company's bottom line.
2. **Financial Performance**:
- Bodal Chemicals reported a robust Q3 FY2025 with standalone revenue at Rs. 436 crore, marking a 28% year-on-year growth.
- The company reported an EBITDA of Rs. 124 crore, with a growth of 48%, and a profit of Rs. 7.3 crore, a growth of 905% on a YoY basis.
- On a consolidated basis, the net profit of Bodal Chemicals rose by 453.06% to Rs 5.42 crore while net sales rose by 30.99% to Rs 443.47 crore in Q3 December 2024 over Q3 December 2023.
3. **Market Position and Challenges**:
- Bodal Chemicals is the sole Indian producer of TCCA, with a 12,000 MT per year production capacity.
- Despite the positive revenue growth, the company faces challenges such as project stabilization issues and the impact of hyperinflation on its Turkish subsidiary, which resulted in a loss.
- The company's stock has experienced a shift in its evaluation, reflecting a transition from a mildly bullish to a mildly bearish stance, indicating complexities in its financial health and market position.
4. **Strategic Expansion and Future Prospects**:
- Bodal Chemicals is expanding into new product lines, such as benzene downstream products, which are expected to contribute to future growth.
- The company's Saykha Greenfield Project has commenced commercial production of benzene downstream products, with expected meaningful contributions to revenue in the second half of FY25.

In conclusion, Bodal Chemicals is poised for growth due to the anti-dumping duties and its strategic expansions, but it must navigate challenges such as project stabilization and the impact of hyperinflation. The company's mixed financial performance and evaluation adjustments underscore the complexities of its financial health and market position.