Operational Highlights
- Revenue from operations stood at ₹860 Cr attributing to growth of 95% YoY
- EBITDA stood at ₹118.7 Cr with EBITDA margins at 14%
- Bounce back from the setback caused due to floods in previous quarter
- Both the business performed strongly
- Import duty on prime raw material “acetic acid” is now reduced from 7.5% to 5% which will have favourable impact on raw material cost
- India is a very small producer of acetic acid and one of the large consumer globally
Segmental review
Specialty intermediates
- Business contributed 30% of the top line.
- The robust performance of speciality intermediates is attributed to ramped up production, following the flood restoration, increased realisations and better product mix optimization towards high value added products
- Exports contribute 30% of SI sales which was less than 10% in previous years
- Raw material prices are correcting and margin visibility is sustainable
- Capacity utilisation at 70% for 9MFY22
Acetyl intermediates
- Business contributed 62% of the top line.
- The strong growth on account of increased realisations and high volumes supported by the subsidiary capacity (Yellowstone Pvt Ltd)
- The prices in the overseas market remain strong through most part of quarter specially in Europe
- volume is growth is sustainable in future, given that the raw material prices correcting and commodity cycles are normalising, expansion in margins could be expected
- Capacity utilisation at 80% for 9MFY22
Capex
- Initial capex was ₹280-₹290 Cr, now it’s reassessed value is ₹450Cr. Part of this incremental cost is time overrun, escalation in cost and significant part of it is increasing infrastructure for capacities of new and existing product
- On track to commercialise speciality intermediates projects and these will start clocking in revenues from Q1FY23
- Decision on launching phase2 capacity of fluoro chemicals to add incremental capacities simultaneously and will commercialise in Q3FY23. Expected turnover from fluorochemicals is ₹280-₹300 Cr
- One in every 3 new APIs will be based on fluorine chemistry