Thirumalai Chemicals Ltd is a part of the Thirumalai Group, which has business interests in chemicals, surfactants, pigments, and education. Incorporated in 1972 and based in Chennai, India, the company stands as a premier specialty chemicals manufacturer in India.
The company's principal activities involve manufacturing and selling organic chemicals such as phthalic anhydride, maleic anhydride, malic acid, fumaric acid, diethyl phthalate, and various fine chemicals and derivatives, both in India and internationally. Thirumalai Chemicals has established itself as a significant player in the specialty chemicals sector, serving diverse industries including pharmaceuticals, agriculture, and industrial applications.
Thirumalai Chemicals is involved in the production of Phthalic Anhydride, Maleic Anhydride, and Food acids. Its product Phthalic Anhydride is utilized in the production of unsaturated polyester resins, and applications in wire and cable, hoses, pipes, coated fabrics, and swimming pool liners, among others. Its product Malic Acid is used in the manufacture of skin and dental care products and can be employed in a number of technical applications, such as electroplating and metal cleaning.
The company serves the plastics, paints, food, cosmetics, and pharmaceutical industries. Its diverse product portfolio positions it well to cater to multiple end-user industries, making it a versatile player in the specialty chemicals market.
Thirumalai Chemicals operates through six subsidiaries located abroad in the USA, Netherlands, Singapore, Malaysia, and the UK. TCL has established two manufacturing facilities in the states of Tamil Nadu and Gujarat. With an international customer base, TCL exports its chemical products to approximately 60 countries, showcasing its extensive global reach.
This significant global footprint demonstrates the company's commitment to international markets and its ability to compete on a worldwide scale. The strategic location of its manufacturing facilities in Tamil Nadu and Gujarat provides logistical advantages for both domestic and export markets.
• Market Capitalization: ₹2,984 Crore (as of recent data, down -6.32% in 1 year)
• Revenue (FY2025): ₹2,050 Crore
• Net Profit (FY2025): -₹46.1 Crore
• Promoter Holding: 41.9%
• Book Value: ₹113
• Dividend Yield: 0.34%
• ROCE (Return on Capital Employed): 0.26%
• ROE (Return on Equity): -4.13%
For FY 2025, the company reported a net loss of ₹46.10 crore, compared to a net loss of ₹38.79 crore in the previous fiscal year ended March 2024. Sales declined by 1.61% to ₹2049.51 crore in FY 2025, down from ₹2083.13 crore in FY 2024.
In the quarter ended March 2025, Thirumalai Chemicals reported a net loss of ₹14.06 crore, an improvement from a net loss of ₹20.47 crore in the same quarter of the previous year. However, sales for the quarter declined by 0.66% to ₹523.06 crore, compared to ₹526.52 crore in the quarter ended March 2024. These figures indicate the company faced operational challenges during FY 2025, with declining revenues and widening annual losses.
The stock is currently trading at 2.58 times its book value. Key indicators highlight operational and profitability challenges:
* The company has a low interest coverage ratio, indicating potential difficulties in servicing its debt.
* It exhibits a low return on equity of 0.09% over the last 3 years, reflecting poor profitability from shareholders' investments.
* Debtor days have increased from 28.3 to 35.4 days, suggesting challenges in working capital management and slower collection of receivables.
The company's leadership includes R Parthasarathy as Chairman and Ramya Bharathram as Managing Director. A positive aspect of corporate governance is the absence of promoter pledging in Thirumalai Chemicals Ltd, which is often seen as an indicator of financial stability from a promoter perspective.
Furthermore, the company has actively engaged in the healthcare and education sectors to fulfill its Corporate Social Responsibility (CSR) requirements, demonstrating its commitment to social responsibility and community development.
The Board of Thirumalai Chemicals, in its meeting on May 16, 2025, decided not to recommend a dividend for the year ended March 31, 2025. This decision was made to conserve and allocate funds for projects that are in advanced stages of execution, reflecting the company's focus on capital allocation towards growth projects during challenging times.
The company continues to explore opportunities in the specialty chemicals market, leveraging its established manufacturing capabilities and global presence. With its diversified product portfolio and international reach, Thirumalai Chemicals is positioned to capitalize on a recovery in chemical industry cycles, though near-term challenges remain regarding profitability and operational efficiency.
