Operational Highlights
- Revenues stood at ₹166.4Cr in Q3FY22 from ₹97.5Cr in previous year same quarter, growth of 70.7% YoY
- EBITDA grew by 82.3% YoY to ₹28.2 Cr with EBITDA margins at 17% in Q3FY22
- Volumes increased by 35.8% YoY to 2953 MTPA
9MFY22 Revenue contribution
- Growth driven by the specialty segment followed by rubber and lubricants.
- Aroma chemicals- 14%
- Food antioxidants-13%
- Rubber chemicals- 36%
- Lubricant additives- 13%
- Specialty chemicals- 24%
Total 148 products across these verticals
- Domestic revenues stood at 38% followed by USA- 26, Europe- 22% and RoW- 14% (export revenues- 62%)
- Tier1 and Tier 2 suppliers for FMCG customers like, Adani wilmar, colgate, SH kelkar, continental tyres, CEAT, mischelinen, jk tyres, indian oil, HPCL etc
- Expanded capacity from 6000 MT to 11000 MT for rubber, lubricants and speciality segment
- Improvement in margins will begin from Q4FY22 onwards
- Current capacity utilisation is at peak of 90% (existing + part of new capacities) for 9MFY22 and continues to operate on optimal levels.
- Company is evaluating opportunities for capacity expansion
- Unexpected incremental cost of power and raw materials will be passed on in next quarter
Key raw materials for every vertical
- Antioxidants- Hydroquinone & Tertbutyl alcohol
- Aroma chemicals- Clove leaf oil (imported from madagascar)
- Rubber and lubricants- Carbon di-sulfide, amines & di-phenylamines
- 3-6 months contract with suppliers for procurement. Also having contracts with customer on quarterly to monthly basis and many other are on spot basis
- FY22 revenue guidance of ₹540Cr approx.
- Applied for EC and under approval process
- Working in 3 segments within lubricants i.e antioxidants, corrosion inhibitors and fixer modifiers of which- lubricant is performing well, fixer modifiers approval period is longer and is picking up well and corrosion inhibitors will be driven by the demand ramp up of ethanol blended fuel
- Specialty segment products finds applications in stabilisers for monomer in acids, epoxy resin and thermoplastics
Competitors
- Food antioxidants- Camlin fine science, Clean science, Solvay and dishman chemicals
- Aroma chemicals- manufacturer from indonesia because clove oil is grown mainly there
- Rubber segment- NOCIL, Lanxess and some chinese players
- Lubricants- BASF , Lanxess and few competition from china
- The greenfield project is under consideration and approvals are expected soon.
- Moderate growth for 2022-23 and will be more into rubber, lubricants and specialty segment
- Increasing R&D capacity and intend to increase R&D spending from this quarter onwards and will be focused on lubricant and rubber products
- ₹25 Crores as non tangible fixed assets spent for REACH certificates.
- Long term debt is ₹40-45 Cr and short term debt is ₹100 Cr. Debt reduction will not be anytime soon as focus on greenfield expansion
- No customers contributed more the 5% of revenues
- Long term guidance of 70-8000 EBITDA/ tonn
- Rubber, specialty and lubricants segment have better margins compared to food and aroma business