Sumitomo Chemical India announces Q2 results: Profit Rises by 34.22% YoY

The comprehensive analytics outlining the performance and outlook of Sumitomo Chemical India Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Sumitomo Chemical India Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 9.39 %. However, it did see a marginal increase of 17.81 % from the previous quarter. Expenses ticked up slightly by 9.63 % quarter-on-quarter, aligning with the annual rise of 3.84 %. Operating profit, while up 30.5 % compared to last year, faced a quarter-on-quarter increase of 52.25 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 4.02 %, but an expansion of 5.62 % sequentially. Other income rose by 20.08 % compared to the last quarter, despite an annual growth of 27.14 %. Interest expenses surged remarkably by 2.52 % from the previous quarter, yet the year-over-year decrease remains at a moderate -1.61 %. Depreciation costs climbed by 5.72 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -0.38 %. Profit before tax grew annually by 32.78 % but saw an increase from the preceding quarter by 51.75 %.
Tax expenses as a percentage of profits decreased slightly by -0.79 % compared to last year, with a more notable quarter-on-quarter decrease of -0.11 %. Net profit rose by 34.22 % year-on-year but experienced a 51.98 % expansion from the last quarter. In summary, Sumitomo Chemical India Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Sumitomo Chemical India Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 9.39 % year-on-year growth, however, there was a minor increase of 17.81 % from the previous quarter. Expenses rose by 3.84 % compared to the previous year, with a 9.63 % increase quarter-on-quarter. Operating Profit surged by 30.5 % annually, and saw a 52.25 % increase from the last quarter.
Net Profit showed yearly increase of 34.22 %, and experienced a 51.98 % increase from the previous quarter. In essence, while Sumitomo Chemical India Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.