Camlin Fine Sciences Q3 2022 Concall Highlights

Revenue grows QoQ grows by 22.4% to ₹380Cr fueled by robust demand
Gross margin improves by 166 bps QoQ to 46.7% despite the inflationary trend in raw material and logistic costs
EBITDA margin improves by 719 bps QoQ to 14.5%
Sustained performance despite annual maintenance shut down in Diphenol Plant in Europe

Lockheed martin deal production will start from FY24
Substantial breakthrough in feed additive business and focus to expand business in north and central America geographies
Entering in geographies of Ecuador for aquatic market
4-5 new products to be introduced in new feed additives business segment with revenue potential of ₹250-300 Cr in 3-4 years
Catechol is having limited induce and hydroquinone is facing challenges in demand and expected to continue further
Expecting to achieve zero discharge at navi mumbai facility by FY22
Price pass on is partially done in hydroquinone, rest of the pass ons will be done later
For CFS North America, revenue is expected to stay at break even until FY23
Converting china plant to a forward derivative product of catechol
Hydroquinone is having better realisation compared to MEHQ thus resulting in higher margins
Evaluating options to manufacture MEHQ from anisole
17-20% EBITDA margins sustainable post vanillin capex
Pricing is now done on a quarterly basis. 80% of business is direct consumer driven and rest 20% is distributor driven

- CAPEX program on track with Ethyl / Methyl Vanillin Plant at Dahej SEZ expected to achieve mechanical completion in March 2022 and commercial production in June / July 2022
- ₹30-40Cr capex for new business segments i.e. feed additives.

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