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Key Highlights • Date of Call: May 17, 2024 • Management Present: Chairman Punit Makharia, CFO Deepak Beriwala
Financial Performance • Q4 Results: • Standalone revenue: INR 135 crores (13% growth) • PAT: INR 11 crores (329% increase) • EBITDA: INR 16 crores (36% increase) • Consolidated revenue: INR 191 crores (6% growth) • Consolidated EBITDA: INR 19 crores (8% decline)
• FY24 Results: • Standalone revenue: INR 487 crores (16% growth) • PAT: INR 27 crores (91% increase) • Consolidated revenue: INR 726 crores (6% growth) • Volume metrics: • Dyes: 5% increase • Dyes Intermediate: 82% increase • Fertilizers: Flat • Animal Feed: 10% decrease
Strategic Focus • Capex Plans: INR 215 crores for new fertilizer unit and solar power initiatives. • Production Capacity: • Unit 6: 150,000 tons • Unit 4: 12,000 tons of specialty products • Solar Project: INR 45 crores capex, expected savings of INR 37-38 crores by FY25.
Market Outlook • Optimism: Improvement in market conditions, especially in Dyes and Intermediates. • Challenges: Issues in Acid and Fertilizer segments.
Debt and Financial Management • Debt Clarification: INR 40 crores of debt explained; INR 85 crores in non-funded limits. • Cash Position: Strong cash reserves of INR 118.5 crores.
Questions from Participants • Backward Integration: Not necessary due to local availability of sulphuric acid. • Fertilizer Margins: Margins are reasonable and vary by unit. • Export Opportunities: INR 77 crores in exports, primarily dyestuffs.
Future Projections • Revenue Growth for FY25: Expected between INR 875 crores and INR 935 crores (15%-20% increase). • EBITDA Margins: Expected 14%-16% for FY25.
Capacity Utilization • Current utilization at 65%, with expectations to reach 70-75% post-expansions.
Conclusion • The call concluded with an invitation for further questions through the investor relations team, emphasizing the company's commitment to transparency and shareholder value.
Conference Call Overview • Date: February 14, 2024 • Transcript issued on: February 20, 2024 • Key Participants: • Chairman: Punit Makharia • CFO: Deepak Beriwala
Strategic Focus • Emphasis on stability and efficient operations over rapid growth. • Significant sales increases noted in the Ratnagiri region. • Ongoing projects include a new solar power plant. • Strong balance sheet and cash position despite global economic challenges.
Financial Performance • Q3 FY24: • Revenue: Rs. 174.60 crores (14% increase) • Profit After Tax (PAT): Rs. 7.6 crores (49% increase) • Nine-month period: • Revenue: Rs. 535.4 crores (6% increase) • EBITDA: Declined by 13%
Q&A Highlights • Chemical Division Composition: • Includes dyes, intermediates, and acids. • Internal consumption not reflected in sales figures. • Market Conditions: • Gradual improvement expected for dyes and intermediates. • Caution regarding fertilizer segment due to high import dependency and logistics costs. • Sales Figures: • Q3 sales of Rs. 13 crores for cattle feed. • Ratnagiri project expected to enhance backward integration and revenue growth.
Capital Expenditure (CAPEX) Plans • New CAPEX: Rs. 106 crores, completion expected by March FY25. • Funding through internal accruals and promoter contributions. • Confidence in returning to previous EBITDA levels of 14-16% and PAT around 10% in the next financial year.
Capacity Utilization and Future Outlook • Current capacity utilization: • Chemicals: 65-70% • Fertilizers: 40% • Expected growth: • Chemicals: 10% • Fertilizers: 20-25% • Anticipated consolidated revenue for the financial year: Over Rs. 725 crores with stable margins. • Commitment to improve the timeline for quarterly financial reporting.
Conference Call Overview • Date: November 6, 2023 • Key Participants: • Punit Makharia (Chairman) • Deepak Beriwala (CFO)
Company Focus • Emphasis on: • Efficient manufacturing operations • Cash flow management • Customer relationship maintenance • Significant Developments: • Increased sales in Ratnagiri • Establishment of a 3.8 MW solar plant • Financial Resilience: • Robust balance sheet with non-lien deposits of Rs. 113 crores
Financial Performance • Q2 FY24: • Revenue: Rs. 185.2 crores (2% growth) • Profit After Tax (PAT): Rs. 8.5 crores (74% increase) • H1 FY24: • Revenue: Rs. 361 crores (3% growth) • PAT: Rs. 16.3 crores
Revenue and Profitability Insights • Expected consolidated revenue: ~Rs. 900 crores (Rs. 350-400 crores from fertilizers) • Historical PAT levels: 9-11% • Impact of market conditions on profitability • Anticipated recovery in fertilizer segment by Q4 2023
Operational Updates • Unit-5: Fully operational • Ongoing CAPEX projects, including solar power expansion (completion by March 2024) • Unit-6: Focus on complex NPK fertilizers
CAPEX and Future Projections • Total planned CAPEX: Rs. 215 crores • Backward integration allocation: Rs. 80 crores • Potential revenue under normal conditions: ~Rs. 1,400 crores
Working Capital and Production Capabilities • Increased working capital due to new projects • Focus on reactive dyes; pigments require different facilities • Expansion of dye manufacturing capacity to double current output
Market Outlook • Shift in global focus from China to India in the chemical sector • Preparedness for future growth without reliance on bank funding
Conclusion • Call concluded with an invitation for further inquiries and Diwali wishes from Makharia.
Key Executives and Overview • Date of Call: August 11, 2023 • Participants: Chairman Punit Makharia, CFO Deepak Beriwala • Focus: Financial and operational performance, cautious growth strategy
Financial Performance • Revenue: Rs. 175.53 crores (4% YoY increase) • EBITDA: Rs. 14.02 crores • PAT: Rs. 7.90 crores • Sector Growth: • Chemical sector: 43.5% volume increase • Fertilizer sector: 18.81% growth
Strategic Insights • Growth Approach: Emphasis on cash flow management and avoiding costly inventory • Challenges: Global demand fluctuations, geopolitical tensions • Optimism: Future profitability supported by a strong balance sheet and government initiatives
Operational Developments • New Plant: Commissioned with a capacity of 132,000 metric tons of Single Super Phosphate • CAPEX: ₹175 crores spent since 2020 on acquisitions and solar energy
Market Conditions • Raw Material Prices: Stabilized after previous lows • Inventory Management: High-cost inventory manageable; seasonal factors affecting fertilizer inventory
Future Outlook • Q2 Expectations: Critical for recovery; optimism for normalcy by Q3 • Capacity Utilization: Chemical division operating at 75-80% in Q1 • Revenue Potential: New facility for Sulphur Chemistry Derivatives expected to generate ₹200 crores under normal conditions
Conclusion • Management Confidence: Strong belief in stability and growth prospects; open to further inquiries.
Conference Call Details • Date: May 17, 2023 • Key Executives: • Mr. Punit Makharia (Chairman & Managing Director) • Mr. Deepak Beriwala (CFO) • Ms. Rasika Sawant (Moderator) • Transcript Availability: On company website, compliant with SEBI regulations.
Financial Performance • Revenue Growth: 17% increase for FY23 compared to FY22. • Final Dividend Declared: INR 1.50 per equity share. • Q4 Revenue Figures: • Chemicals: INR 85.42 crores • Fertilizers: INR 94.90 crores • Overall FY23 Revenue: Decrease in Q4 but overall increase for the fiscal year.
Business Outlook • Focus Areas: Sustainable growth, efficient operations, strong cash conversion cycle. • Market Conditions: Softening demand for dyes and fertilizers, but signs of recovery noted. • Future Projections: • Revenue growth of 20-25% for FY24. • Cautious outlook on performance due to prolonged demand depression.
Segment Insights • Fertilizer Division: Positive outlook with government support for indigenous products. • Chemical Sector: Facing demand and price pressures; expected improvement in Q2. • Capacity Utilization: Approximately 60% for both fertilizer and chemical businesses.
Challenges and Strategies • Geopolitical and Market Conditions: Affecting realizations and profitability. • Consolidation Phase: After recent INR 175 crores capex; no aggressive new investments planned. • Transportation Costs: Limit product movement, impacting regional demand.
Investor Concerns • Share Price Decline: Investor suggestions for promoter share purchases to boost confidence. • Management Response: Focus on company performance over share price fluctuations.
Conclusion • Positive Outlook: Despite challenges, the company remains optimistic about future growth and profitability. • Engagement with Investors: Encouraged further inquiries through Investor Relations Advisor.
Key Executives • Chairman: Punit Makharia • CFO: Deepak Beriwala
Company Performance • Chemical Exports: Decline due to global pressures; recovery in dye demand from Bangladesh and Turkey. • Fertilizer Division: Stable volume levels; significant revenue increase. • Revenue Growth: 12% year-on-year increase for Q3 FY '23; EBITDA margins at 9%.
Future Outlook • Optimism for growth supported by a strong balance sheet and ongoing capital projects, including Unit 5. • Anticipated stabilization and better performance in FY '23-'24 due to operational improvements.
Production Insights • Chemical Volumes: 30% increase attributed to Unit 5; low-value acid products included in value calculations. • Capacity Utilization: Low overall; 25% increase in chemical production year-on-year; 15% decline in fertilizer volumes.
Market Challenges • Decline in dyestuff demand linked to energy and currency crises in Europe. • Impact of China's zero-COVID policy has not negatively affected business. • Current pricing for H-acid and Vinyl Sulphone shows stable trends.
Pricing and Raw Material Costs • Vinyl Sulphone prices currently depressed due to rising energy costs, particularly coal. • Emphasis on maintaining cash flow and minimizing inventory during challenging market conditions.
Fertilizer Division Insights • Low capacity utilization: 1.5 lakh tons produced against a capacity of 4.5 lakh tons. • Anticipated production increase to around 3 lakh tons next year with average utilization of 65-70%.
Demand Sources • Chemical division revenue from a mix of domestic and export markets, including Switzerland, Europe, Bangladesh, and Turkey.
Fertilizer Division Projections • Potential for 10% PAT margins and 18-19% EBITDA margins. • Projected revenue increase to around INR 500 crores next year.
Conclusion • Makharia expressed confidence in the company's growth potential and encouraged further inquiries through the investor relations team.