Jyoti Resins & Adhesives reports a 17% revenue increase in the June quarter amid raw material price swings and geopolitical disruptions, with new capacity set to boost future growth.
Jyoti Resins & Adhesives said revenue rose 17% in the June quarter from a year earlier, helped by 10% volume growth even as the company grappled with a sharp swing in raw material prices and geopolitical disruption, according to its earnings call summary. Management said the performance showed that the brand continued to hold up well in the market despite passing through higher costs.
The Ahmedabad-based adhesives maker also said its brownfield capacity expansion is close to completion. The plant is being lifted from 2,010 tonnes to 3,510 tonnes a month and is expected to be operational within one to two months. Management said the enlarged facility could support ₹600 crore to ₹650 crore in revenue from the existing site, while a future greenfield project is tied to a longer-term revenue goal of ₹1,000 crore.
Margins came under pressure in the quarter. The company said EBITDA margin fell to 16% after vinyl acetate monomer, a key input, surged from about ₹75-₹78 per kilogram to ₹170-₹180 in late March and April before easing to around ₹100. It also pointed to higher employee expenses after hiring and appraisals, along with spending on dealer and carpenter outreach. Management said it had taken price increases in April and May and secured 90-day supply contracts for the current quarter, which it expects will help restore margins over time.
The company said it remains debt-free and continues to generate cash, giving it room to fund expansion internally. It has also widened its network of registered carpenters to 210,000, which management sees as an important loyalty channel. Even so, trade receivables remain elevated at roughly ₹145 crore to ₹150 crore, with collection days above 150, and management said it aims to bring that down over the next few quarters. The company also said it is not pursuing a buyback at present and expects its NSE listing to move ahead this quarter. A separate market report by Mint noted that in the previous quarter, Jyoti Resins had reported total income of ₹75.10 crore, operating profit of ₹20.18 crore and net income of ₹17.38 crore, underscoring how sharply conditions have shifted as the company navigates raw material volatility.
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