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Specialty chemicals player Anupam Rasayan has expressed confidence in sustaining its growth as it is witnessing the benefits of the Europe+1 trend.

European Chemical players, who once had the advantage of low gas prices, ended up creating large-scale capacities of bulk chemicals. The entire economics is now under threat due to elevated gas prices.

A note from IIFL says that in addition to being a competitor, Europe is also an export destination and that this crisis enhances visibility for the entire chemical sector in India.

Anupam Rasayan's net profit for the September quarter increased 15 percent from last year to Rs 41 crore. Revenue witnessed a growth of 25 percent while the margin expanded over 450 basis points.

Speaking of the Europe+1 trend, the company signed two contracts with a European crop protection company for supplying two new life science-related specialty chemicals a couple of weeks earlier. The products will be supplied over the next three years.

The company also raised funds this month through a Qualified Institutional Placement (QIP), issuing shares to eligible bidders at Rs 725 per share.

Shares of Anupam Rasayan opened higher but have given up most of their gains. The stock is currently trading 0.7 percent higher at Rs 788 and is down 25 percent for the year so far.

(Edited by : Rukmani Krishna)