Operational Highlights
- Revenue grew by 44% on YoY basis, driven by growth across product segments to ₹1,286 in Q3FY22 from ₹893 in Q3FY21
- Revenue from Pharma, Nutrition and Agro end use increased significantly.
- Most of the input cost is passed on resulting in better realisations
- Dow Jones sustainability index is 81% for the company and ranked top 20 chemicals globally and top 3 in India
- Acetic acid prices were high due to china and supply constraints
- The change in duty for acetic anhydride and methanol will benefit more to consumers then the manufacturers
Business strategy
- Focus on debottlenecking on existing products
- Acetic acid supply will be better at the end of quarter and prices are softening
- Targeting to increase volume QoQ
- 34 new products under pipeline and expected to launched in coming years
- Might consider additional capex until next call
- 55% of business is from the life science segment and 45% from speciality. Post capex as the revenue mix shifts more to speciality, margins expansion will be visible
- If raw material prices stay high and continue at these levels, the revenue will be doubled earlier the FY26
Segmental Overview
Speciality chemicals
- Revenues stood at ₹349 Cr contributing 27% to revenues with 21.8% EBITDA margins
- Speciality Chemicals revenue grew by 22% YoY driven by volume growth across products and passing-on of higher input costs.
- Pharma Sales share to total revenue grew to 52% from 47% earlier.
Health and Nutrition
- Revenues stood at ₹216 Cr contributing 16% to revenues with 24.4% EBITDA margins
- Nutrition and Health Solutions revenue grew by 37% YoY driven by higher volumes and improved price realisation
- Sales in vitamin B3 improved due to high realisations and volume growth
- Revenue share from EU increased to 36% as against 20% last year and share from North America increased to 21% from 11% earlier.
Life sciences
- Revenues stood at ₹722 Cr contributing 56% to revenues with 13.9% EBITDA margins
- Life Sciences Chemical revenue grew by 60% YoY, driven by higher prices on account of favourable market conditions
- High demand in European as well as domestic regions
- Life Sciences Chemical revenue growth was driven by higher prices of Ethyl Acetate and Acetic Anhydride
Capex
- Food Grade Acetic Acid. (expected by April to June 2022)
- CDMO GMP Facility at Bharuch. (expected by July to Sep 2022)
- Three Multi-Purpose plants of Speciality Chemicals. (expected by July to Sep 2022)
- Acetic Anhydride Plant. (expected by Jan to March 2023)
- Agro Actives Phase-1. (expected by Jan to March 2023).
- Diketene plant is commissioned and demand is high in India as many consumers are importing. Few customers are waiting with order books
- Capex is on course and expect to double the revenues in FY26 from FY20 mark
- Committed investment worth Rs. 450 Crore for key growth capex is progressing well. At peak capacity these investments are expected to generate additional annual revenue of ₹ 900-₹1,000 Crore at prevailing prices.
- Expected capex cash outflow for the year is expected to be in the range of ₹300 crore.
- Gross Debt reduction by ₹263 Crore and Net Debt reduction by ₹201 Crore from 31st March 2021