Kanoria Chemicals & Industries Ltd has reported a net profit of Rs 5.18 crore during the second quarter to September 30 against Rs 42 lakh in the corresponding period last year.

N K Nolkha, CFO of the company told Business Line that decline in key raw material – methanol – as well improved operational efficiency was behind the jump in net profit during the quarter.

“Though prices of methanol, the key raw material, and the finished products – formaldehyde and hexamine – are interlinked, there is always a cost benefit on account of inventories in a falling market. This benefit accrues as there remains a time lag in price adjustment between raw material and the finished chemicals,” he explained.