Operational Highlights
- The revenue for the quarter was ₹1748 cr it was up 41% YoY as against ₹1240 Cr in same quarter previous year
- EBITDA margins stood at 22% translation to EBITDA of ₹378 Cr
- Continued robust revenue momentum was fueled by solid growth trajectory in Phenolics
- In Q3 FY22, the company has achieved highest ever top line in a quarter, both on standalone and consolidated basis
- Business segments are interwoven, this means that if prices of BI increases, you may see a simultaneous dip in FSCsegment, as internal product transfers take place at market prices.
- This year has been very strong for BI segment. In FSC segment, as most are long term contracts, there is some lag inpassing the input costs
- In 9MFY22 volumes grew by 10% partially because of brownfield expansion
- Evaluating opportunities to develop expertise in levels of fluorination and photochlorination.
- China is the largest manufacturer of certain commodities but most of it is captively consumed, so it doesn’t really impact much to the domestic capacities
- Phenol and acetone will remain strong in further quarters
- Last year was covid period, thus it is essential to understand that YoY volume growth is with the base of covid year and thus seems to be higher
- phenol ‘s captive consumption is around 20-25% and expected to rise upto 40-45%, post expansion
- Commodity companies did well during the Q3 but it won’t be the same going forward as the KSM prices neutralises, margins will be back in place
- Having dominant wallet share and market position in operating geographies with most of the products having 75-80% market share
- Rise in crude price have impacted the propylene prices
- Cost of the diesel used for transporting materials to customers (trucks & tankers) is ₹15Crs on monthly basis
- Revoke of anti dumping duty does not affect the business
Segment performance
Basic Intermediates segment
- Basic Intermediates revenue was ₹345.81 cr up by 76.2% YoY
- Benefited from healthy realisation gains as price hikes were undertaken for key products,in-line with higher input costs.
- Volume growth for 9M FY22 came in at 10%
Fine & Specialty
- Fine & Speciality Chemicals revenue stood at ₹206.66 cr down by 2% YoY
- The performance of the FSC segment must be seen in light of significant challenges linked to logistics.
- In addition to this, the Company witnessed elevated raw material costs from BC segment
Performance Products
- Performance product segment stands to benefit from demand supply asymmetries
- Performance Products Revenue was ₹169.88 cr up by 88% YoY
- Momentum in DASDA demand is seen, resulting in higher realisation and OBA was also able to pass on this increase in DASDA costs
- volume growth for 9M FY 22 remained strong, at 44%
Phenolics
- Phenolics revenue stood at ₹1,033.11 cr up by 38.3% YoY
- Capacity utilisation was 117%
- Company plans to bring in downstream products of phenol in FY 22-23
Capex
- Brownfield expansion of IPA was commissioned on 19th December 2021. This has doubled the IPA capacity to 60,000 MTPA