Operations Highlights
- The revenue for Q3FY22 grew by 22% QoQ to ₹255 Cr from ₹208.8 Cr in the previous quarter.
- Gross margins stood at 37% in Q3FY22 compared to 40.6% in previous quarter, degrowth of (-362 bp)
- 53.05% contribution of revenue from exports and 46.9% from domestic markets
- Top 10 products contributed 65%+ revenues in 9MFY22
- The contracts with Nippon Kayaku and a Japanese company are performing well, the clients are satisfied with the product quality and high demand for molecules is anticipated
- In discussion to add 2 more products to the portfolio and commissioning in next few quarters
- 60-65% of revenue from contractual basis with MNC’s
- Sales were in line with raw material cost and unfavourable product mix resulted in depression of margins
- EBITDA margins of 13%-15% is sustainable as per management
- 70% of sales from agrochemicals industry distributed between herbicides and fungicides
- 130-140 Cr of sales from one API molecules is expected ahead
Business strategy
- Working on certain intermediates and expected to commercialise till second quarter next year
- ₹1500 Cr order book from customers in which the existing contracts are extended to 2-3 years and new contracts undertaken are for 5 years and so.
- These contracts will be renewed at the time of expiry hence creating a recurring revenue
- Expecting 25% increase in industrial chemicals (phosphorus chemistry)
- Another new upcoming product will be acting as an import substitute and is already in high demand from customers like Mylan, Divis labs, and Laurus labs
- The consistent supply of products without disruption is what makes Punjab chemicals preferential supplier to its customers
- Higher margins in new products
- 60% work of capex is done