Operational Highlights
- The revenues for Q3FY22 stood at ₹929.1Cr from ₹674.7 Cr in same period previous year accounting to growth of 37.7% YoY
- EBITDA for the quarter stood at ₹78.2Cr translating to EBITDA margins of 8.4%
- PAT contracted by (-46.5%) YoY to ₹45.6 Cr in Q3FY22 from ₹85.2Cr in Q3FY21 translating to PAT margins of 4.9% for the current quarter
- Supply led volatility continued in Q3FY22
- While the volumes remain flat YoY, the decline in EBITDA impacted the overall performance
- Across the board inflationary scenario combined with Supply Chain challenges (Freight Costs + On time Container availability + Port congestion) impacted International Volumes and Margins
- EBITDA/MT below the stated band of Rs 16,000-18,000/MT on account of higher input costs and higher cost of servicing given the volatile scenario
Volume breakup for Q3FY22
- Performance Surfactants 36,983MT
- Specialty care-21,044 MT
- Total production volume is at 58,027 MT
- Indian market grew by 6.9% on YoY basis
- Africa, the Middle east and Turkey contracted by 9.2% on YoY basis. RoW regions grew by 2.5%
- Volumes were affected in turkey due to local problems, besides that all other geographies stood robust in terms of demand
- Logistical issues in North America is more on the the internal truck network, the containers are timely on ports but delivery is delayed due to lack of availability of trucks
Revenue Split in Q3FY22
- Performance Surfactants -61% i.e ₹570 Crs
- Specialty care-39% i.e ₹361Crs
- Fatty Alcohol prices in this Quarter increased to an average price of $ 2,602/MT vs, average prices of $ 1,558/MT in Q3FY21.
- Crude derivatives, fatty alcohols, and fatty acids constitute nearly 80% of raw material procurement and sudden surge in fatty alcohols, crude and freight rates impacted the margins. Compared to September, the have increased in Oct-Dec quarter by 10-45%. These incremental costs will be passed on with lag of one quarter
- Significant share of the speciality business is on contractual basis with a quarterly lag to pass the incremental rice increase.
- Export incentives realised in egypt during Q3 to the tune of ₹14 Crs was not recognized in the current quarter.
- Raw material availability improved in this quarter, but container shortage resulted in delayed shipments accounting to loss of volumes
- Plant commissioning in line at Jhagadia, the capacities has been well utilised and will ramp up fast whereas at Tarapur facility, which is under process of commissioning will ramp up slower compared to Jhagadia
- Expecting to spend ₹150-₹200 Cr for capex every year
- The new product diversification basket will be more speciality based
- Certain orders will be deferred and have a quarter lag due to delay in availability of raw materials
- Target to have volume growth of 6-8%
- Fatty alcohols prices were $2600/MT in Q3 and has elevated to $3000/MT
- Capacity utilisation for 9M stood at 67% and for previous year it was 65%