Camlin Fine Sciences Q3 2022 Concall Highlights

Operational 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

Revenue split

  • Shelf life: 31%,
  • Blends: 32%,
  • Performance chemicals: 36%,
  • Aroma chemical: 1%
  • 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

CSF regional breakup

  • India-  Revenues stood at ₹200Cr with growth of 22% YoY
  • Mexico- Revenues stood at ₹91.3Cr with growth of 29% YoY
  • Europe- Revenues stood at ₹87.4Cr with growth of 26% YoY
  • Brazil- Revenues stood at ₹22.1Cr with growth of 21% YoY
  • North America- Revenues stood at ₹13.4Cr with growth of 68% YoY

Capex

    • 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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