Submission Details
• Date of submission: May 23, 2024
• Transcript of Q4 FY24 Earnings Call held on May 17, 2024
• Hosted by: Valorem Advisors
Financial Overview
• Challenges: Weak global demand and increased imports in the chemical industry
• Key Issues: Operational challenges in Soda Ash and PVC markets
• Performance:
• EBITDA: Rs. 46 crores for the quarter
• Credit rating: ‘A’
• Anticipated improved performance in H2 FY25
Revenue and Growth
• Q4 FY24 Revenue: Rs. 622 crores
• 56% increase QoQ
• 6% increase YoY
• EBITDA: Rs. 69 crores
• 1.9 times increase QoQ
• 34% decline YoY
• Margin: 11% (down from 18% in Q4 FY23)
• Fiscal Year Revenue: Rs. 1,872 crores (down from Rs. 2,634 crores)
• Focus: Specialty Chemicals contributed 67% of EBITDA
Specialty Chemicals Insights
• Future Contribution: High-margin, low-volume products
• Goal: Increase Specialty EBITDA to over 50% in coming years
Market Environment
• Margins:
• SIOP: ~35%
• CPVC: 30%
• Soda Ash: 18-20%
• Caustic Soda: Currently unprofitable
• Capacity Issues: No recent capacity addition in Caustic Soda due to market surplus
Capital Expenditures
• Plans: Enhance South facility and explore new chemistry
• Routine CAPEX: Rs. 35-40 crores, funded through bank borrowings
Capacity and Production
• Current Operations: 90% capacity utilization due to technical disruptions
• Future Expectations: Improvements anticipated by Q4 FY25
• Soda Ash Imports: Nearly doubled from the previous year due to insufficient domestic capacity
Management Outlook
• Optimism: Future price trends and capacity expansions in specialty chemicals are expected to improve overall performance.

Regulatory Compliance
• DCW Limited submitted a transcript of its earnings call to the National Stock Exchange of India and BSE Limited.
Financial Performance
• Q3 FY24 Results:
• Revenue declined by 4% to Rs. 398 crores.
• EBITDA dropped by 48% compared to the previous quarter.
• Year-on-year revenue decline of 32%.
• Challenges:
• Weak global demand and excess imports.
• Operational disruptions due to severe flooding in Tamil Nadu.
• Positive Aspects:
• Strong domestic demand for certain products.
• Growth in specialty chemicals, particularly C-PVC with a 25% increase in sales volume.
Commodity Chemical Segment
• Price Declines:
• Caustic soda prices fell by 10% to Rs. 30,000 per tonne.
• Soda ash prices softened by 7% to Rs. 26,000 per tonne.
• Capacity Utilization:
• Operated at 85% capacity due to a gearbox failure.
Management Outlook
• Optimism for recovery in Q4 as production ramps up and export conditions improve.
• Anticipation of a potential recovery in commodity prices in the coming months.
Future Capacity and Investments
• Caustic Soda Utilization:
• Expected to remain stagnant in the next quarter, with improvements anticipated in the first quarter of the next financial year.
• Renewable Energy Investments:
• Investment in solar energy expected to reduce power costs starting in Q2 of the next year.
Regulatory Challenges
• Current regulations in Tamil Nadu limit rooftop solar project feasibility.
• Solar energy not commercially viable for soda ash production in Gujarat.
Pricing Dynamics
• Gradual recovery in chemical prices expected from the first quarter of next year.
• Ongoing pressure from imports affecting pricing.
Production Capacity
• New plant commissioned on October 31 expected to ramp up production to 50-60% in Q4, with full capacity anticipated in the following quarter.
Conclusion
• The call concluded with an invitation for further inquiries.

Submission Details
• Date of Submission: November 17, 2023
• Call Date: November 10, 2023
• Regulatory Compliance: Transcript submitted to National Stock Exchange of India and BSE Limited.
Key Highlights
• Sector Challenges:
• Excess imports from China causing price erosion and reduced sales volumes.
• Revenue and margins contracted by 5.5% and 16%, respectively.
• Segment Performance:
• PVC segment achieved positive EBITDA for the first time since FY23.
• Soda ash production limited to 75% capacity due to mechanical issues.
• Caustic soda segment under pressure from overcapacity and weak global demand.
• Specialty chemicals (CPVC and SIOP) performed well with strong margins.
Financial Performance
• Revenue: 414 crores, down 5.5% quarter-on-quarter and 40% year-on-year.
• EBITDA: 46 crores, a 58% decrease year-on-year.
• Current Ratio: 1.2; reduced borrowings by 62 crores.
• FY24 EBITDA Expectation: 230 to 250 crores, with improvements anticipated from new CPVC volumes.
Operational Updates
• CPVC Plant: Operational with production ramp-up expected to full capacity by Q4.
• CAPEX: Additional 10,000 capacity within the limit of 125 crores.
• Price Trends: CPVC prices decreased from Rs.205,000 to Rs.150,000 per tonne; margins expected to stabilize at 30-35%.
Market Insights
• PVC Imports: Averaging 100,000 tonnes monthly from China; confidence in market stabilization.
• Caustic Soda Production: Deliberately limited to 80% capacity due to low prices.
• Employee Costs: Decreased due to variable commissions; overall expenditure down from 70 crores to 60 crores.
Shipping and Maintenance
• Shipping Costs: Clarified by Amitabh Gupta; maintenance costs increased due to repairs at soda ash and caustic facilities.
• Chlorine Market: Remains negative; plans to increase captive consumption to 70-72% with new CPVC plant.
Contingent Liabilities
• Decrease: From 278 crores to 220 crores following a favorable customs judgment.
Conclusion
• Management expressed optimism about future price improvements and demand growth, inviting further questions and wishing participants a Happy Diwali.

Submission Details
• Date of submission: August 22, 2023
• Transcript of Q1 FY24 Earnings Call held on August 16, 2023
• Compliance with National Stock Exchange of India and BSE Limited regulations
Financial Performance Highlights
• Revenue Decline:
• Q1 revenues: 438 crores (down 25% from previous quarter, 43% year-on-year)
• Price corrections in PVC (9%) and caustic soda (5%)
• Significant volume declines:
• Caustic soda: -20%
• PVC: -8%
• Soda ash: -30%
• EBITDA:
• Q1 EBITDA: 55 crores (down 45% from previous quarter, 55% year-on-year)
• EBITDA margin: 12.5%
• Debt Management:
• Interest costs reduced to 17 crores
• Plans to repay 125 crores of debt, targeting 380 crores by year-end
Future Outlook
• Anticipated improvements with new project commissioning
• Expected recovery in export demand in the second half of the year
• Cautious optimism for price recoveries in PVC and caustic soda
SIOP Division Insights
• Non-commodity nature with customization for clients
• Positive responses from major clients (e.g., Asian Paints, JSW)
• Projected quarterly EBITDA growth from 10 crores to 20 crores as production increases
Energy and CAPEX Plans
• Current reliance on coal for energy, exploring alternative options
• Planned CAPEX for FY24: approximately 125 crores
• Emphasis on timing CAPEX to avoid excessive debt
Margin Expectations
• Recent margin dip to 13%, with recovery anticipated to over 20% by FY25
• Focus on maximizing EBITDA and cash flow over top-line revenue
Market Challenges
• Soda Ash Market:
• Seasonal slowdowns and increased imports causing a glut
• Optimism for improvement by October
• Caustic Soda:
• Low prices due to poor economic conditions in China
• Stabilization of chlorine prices noted
Price Changes and Segment Performance
• Soda ash prices decreased from Rs. 33,000 to below Rs. 30,000
• Caustic soda prices around Rs. 30,000
• PVC prices have seen slight increases; SIOP prices stable between Rs. 80,000 and Rs. 83,000
Conclusion
• The call concluded with gratitude from Saatvik Jain and an invitation for further inquiries.

Regulatory Compliance
• Transcript submitted to National Stock Exchange of India and BSE Limited.
• Call hosted by Valorem Advisors.
Financial Highlights
• Q4 FY23 Performance:
• Revenue: 588 crores (up from 579 crores in Q3).
• EBITDA: 104 crores (flat with an 18% margin).
• Net Profit: 79% increase year-on-year.
• Year-on-year revenue decrease of 20% due to price drops in PVC and caustic soda.
• Fiscal Year Performance:
• Total Revenue: 2,625 crores (7% increase).
• EBITDA: 444 crores (34% increase).
• Improved financial health with a current ratio of 1.38 and debt-to-equity ratio below 0.5.
Operational Insights
• Focus on specialty chemicals to mitigate commodity price volatility.
• Strong demand for SIOP and positive outlook for the paint sector.
• Anticipated recovery in commodity chemical segment prices.
Market Dynamics
• Decline in CPVC net realizations but improved EBITDA margins.
• Strong domestic demand for soda ash despite international price declines.
• Ongoing capital expenditures for CPVC and SIOP with expected volume increases.
Demand and Pricing
• CPVC demand growing at 12-13% year-on-year.
• Price realizations for CPVC linked to PVC resin prices.
• Management expects continued decrease in caustic soda prices.
Energy and Cost Management
• Measures to reduce energy consumption and evaluate renewable energy options.
• Gross debt reported at 504 crores, net debt at 340 crores.
Competitive Landscape
• Confidence in product superiority in CPVC despite competition.
• Balanced growth strategy between specialty and commodity chemicals.
Dividend Policy
• Paid a 20% dividend last year and an interim dividend of 10% this year.
• Proposals for an additional 15% dividend, aiming to distribute 10% of net profits.
Future Projections
• Projected EBITDA of 115 crores from SIOP and CPVC this year.
• Anticipated annualized profits from CPVC and SIOP to exceed 200 crores once capacity increases are realized.
Conclusion
• Management expressed cautious optimism about maintaining margins despite price fluctuations.
• Emphasis on operational excellence and growth initiatives moving forward.

DCW Limited Q3 Earnings Conference Call Summary
Date and Participants
• Date of Call: February 15, 2023
• Key Management Present:
• President: Saatvik Jain
• COO: Sudarshan Ganapathy
• CFO: Pradipto Mukherjee
Financial Highlights
• Revenue Growth: 17% increase year-on-year for nine months ending December 31, 2022.
• EBITDA Growth: 47% rise year-on-year.
• Specialty Chemicals Segment: 35% EBITDA growth.
• Commodity Chemicals Segment: 57.5% EBITDA increase.
• Operating EBITDA: Maintained above 100 crore for four consecutive quarters.
Q3 Performance Insights
• Quarterly Revenue: 580 crore, a 17% decline attributed to a 20% drop in PVC production and sales.
• EBITDA Margin: 18.25%, the highest in company history.
• Debt Refinancing: Resulted in reduced finance costs and lowest interest costs in several quarters.
Capacity Expansion Plans
• CPVC Capacity: Increased from 10,000 tons to 20,000 tons.
• SIOP Output: Increased from 60 tons to 85 tons per day.
• Future CAPEX Plans: To double CPVC capacity and enhance synthetic Rutile production.
Market Insights
• VCM-PVC Spread: Currently around $200, down from $300 in FY22.
• Soda Ash Segment: Stable prices expected around 34,000 to 35,000.
• Caustic Soda Prices: Anticipated softening throughout FY24.
• Chlorine Prices: Expected to stabilize near zero.
Future Projections
• EBITDA Contribution: Specialty chemicals expected to contribute 35-40% of EBITDA in FY24.
• EBITDA Growth: Projected at 8-10% for FY24.
• Profit Before Tax Growth: Expected to be 25-30%.
Closing Remarks
• Management's Focus: Operational efficiencies and cost management amid fluctuating raw material prices.
• Investor Relations: Encouraged further inquiries to be directed to their investor relations agency, Dickenson.