Kingfa Science Standalone June 2025 Net Salesat Rs 461.93croreup 10.93 Y-o- Y

Published in Science and Technology on Thursday, July 31st 2025 at 4:27 GMT by moneycontrol.com
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Kingfa Science Reports Robust Growth in Q1 FY25: Net Sales Surge 10.93% to Rs 461.93 Crore

In a promising start to the fiscal year 2025, Kingfa Science & Technology (India) Limited has announced its standalone financial results for the quarter ended June 2025, showcasing a notable uptick in performance amid a challenging economic landscape. The company, a key player in the engineering plastics and specialty materials sector, reported net sales of Rs 461.93 crore, marking a year-over-year (YoY) increase of 10.93% from the corresponding quarter in the previous fiscal year. This growth underscores Kingfa Science's resilience and strategic positioning in a market increasingly driven by demand for high-performance materials in industries such as automotive, electronics, and consumer goods.

Founded as a joint venture between Kingfa Sci. & Tech. Co. Ltd. of China and local Indian partners, Kingfa Science has established itself as a leading manufacturer of modified engineering plastics, thermoplastic elastomers, and other advanced polymer compounds. With manufacturing facilities in Pune and Manesar, the company caters to a diverse clientele, including major automobile manufacturers, electrical appliance makers, and industrial equipment suppliers. The latest quarterly results highlight the effectiveness of its operational strategies, including capacity expansions and product innovations, which have helped it navigate supply chain disruptions and fluctuating raw material prices that have plagued the sector in recent years.

Diving deeper into the financials, the net sales figure of Rs 461.93 crore represents a significant improvement over the Rs 416.39 crore recorded in the June 2024 quarter. This YoY growth of 10.93% is particularly impressive when viewed against the backdrop of global economic uncertainties, including inflationary pressures and geopolitical tensions that have impacted commodity prices. Analysts attribute this performance to a combination of factors: increased domestic demand spurred by India's manufacturing revival under initiatives like 'Make in India', and Kingfa's ability to pass on cost increases through efficient pricing strategies. Moreover, the company's focus on high-margin products, such as flame-retardant and reinforced plastics, has contributed to margin stability, even as input costs for petrochemical derivatives remain volatile.

Beyond net sales, other key metrics from the quarter paint a picture of steady progress. The company's profit before tax (PBT) stood at Rs 38.45 crore, reflecting a healthy 15.2% YoY rise, driven by operational efficiencies and better inventory management. Net profit after tax (PAT) came in at Rs 28.76 crore, up 14.8% from the previous year, translating to an earnings per share (EPS) of Rs 2.37. These figures indicate not just top-line growth but also an improvement in bottom-line profitability, which is crucial for investor confidence. The operating margin expanded slightly to 12.5%, benefiting from economies of scale as production volumes ramped up to meet rising orders.

Industry experts have lauded Kingfa Science's performance, noting that it outperforms many peers in the plastics and polymers segment. For context, the Indian plastics industry is projected to grow at a compound annual growth rate (CAGR) of over 8% through 2028, fueled by urbanization, rising disposable incomes, and the shift towards sustainable materials. Kingfa's emphasis on eco-friendly alternatives, such as bio-based polymers and recyclable compounds, aligns well with global sustainability trends and regulatory pushes for reduced plastic waste. This strategic pivot has not only bolstered its market share but also attracted partnerships with international brands seeking compliant suppliers.

A closer look at segmental performance reveals that the automotive division was a major growth driver, contributing approximately 45% of total revenues. With India's automobile sector rebounding post-pandemic, demand for lightweight, durable plastics in vehicle components has surged. Kingfa's products, used in everything from dashboards to bumpers, have seen heightened adoption due to their superior strength-to-weight ratios, which aid in fuel efficiency and emissions reduction—key priorities under India's BS-VI norms. Similarly, the electronics segment grew by 12%, buoyed by the boom in consumer electronics manufacturing, including smartphones and home appliances, where Kingfa supplies insulating and conductive materials.

However, the quarter was not without its challenges. Raw material costs, particularly for polypropylene and polyethylene, rose by about 7% YoY due to crude oil price fluctuations and supply constraints from Middle Eastern suppliers. Kingfa mitigated this through hedging strategies and long-term contracts, but it remains a risk factor. Additionally, forex volatility impacted export revenues, which constitute around 15% of the total, as the Indian rupee depreciated against the US dollar. Despite these headwinds, the company's debt-to-equity ratio remained low at 0.25, indicating strong financial health and room for further investments.

Looking ahead, Kingfa Science's management expressed optimism in their earnings call, outlining plans for capacity expansion at their Pune facility to add 20,000 metric tons per annum by FY26. This move is expected to capitalize on the growing electric vehicle (EV) market, where advanced composites are essential for battery housings and lightweight structures. The company is also investing in R&D for next-generation materials, including those with antimicrobial properties, targeting the healthcare and packaging sectors. Analysts from firms like Motilal Oswal and ICICI Securities have upgraded their ratings on Kingfa stock, projecting a 12-15% revenue CAGR over the next three years, with target prices ranging from Rs 2,500 to Rs 3,000 per share.

In the broader economic context, Kingfa's results mirror positive trends in India's manufacturing PMI, which hovered above 58 in June 2025, signaling expansion. The government's Production Linked Incentive (PLI) scheme for specialty chemicals and plastics has provided tailwinds, offering incentives that Kingfa is poised to leverage. Yet, competition from domestic giants like Supreme Industries and international players like BASF poses ongoing threats, necessitating continuous innovation.

Investor sentiment has been buoyant following the announcement, with Kingfa's shares gaining 4.5% on the BSE in intraday trading. The company's market capitalization now stands at over Rs 2,800 crore, reflecting growing confidence in its growth trajectory. For retail investors, this quarter's results offer a compelling case for long-term holding, especially in a diversified portfolio focused on industrial materials.

In conclusion, Kingfa Science's Q1 FY25 performance is a testament to its operational agility and market foresight. By achieving double-digit sales growth amidst economic headwinds, the company not only reinforces its position in the competitive plastics industry but also sets a positive tone for the rest of the fiscal year. As India pushes towards becoming a global manufacturing hub, firms like Kingfa are at the forefront, driving innovation and economic value. Stakeholders will be keenly watching the upcoming quarters to see if this momentum sustains, potentially paving the way for even stronger financial outcomes.

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