Operational Highlights
- The revenues for Q3FY22 stood at ₹429.4Cr from ₹310.3 Cr in same period previous year accounting to growth of 38.4% YoY
- EBITDA for the quarter stood at ₹48.5Cr translating to EBITDA margins of 11.29%
- . The contributors to Consolidated Net Profit after tax of ₹106.02Crore in Q3-FY22 include share of profit of DyStar (associate company of Kiri) to the tune of ₹81.49 Crore, and ₹13.44Crore from Lonsen Kiri Chemical Industries Limited
- Consolidated Gross Margin has strengthened to 33%, a Q-o-Q increase of 3% which is further expected to improve in coming quarters
Capacity utilisation
- Dyes- 38%
- Dye intermediates- 78% Basic chemicals- 90%
- New specialty intermediates (operational from January 21st)- 27%
- Vinyl sulfone prices have increased to around ₹380 to ₹390. Maybe shortly it will touch ₹400. The trend is going up. H-Acid is somewhere around ₹475 to ₹485 and expect H-Acid to cross ₹500
- The legal & professional fees, for litigation against Senda and DyStar in Singapore Court(s) which are non-recurring expenditure and exceptional in nature are included in operational expenses, impacting EBITDA of the company.
- The company was able to stimulate its business performance in Quarter 3 FY22 due to improved volumes across its diverse product portfolio and also due to fully integrated plants for dyes and 2-stage backward integration of dyes intermediates, specialty intermediates as well as basic chemicals.
- Kiri experienced a significant increase in power and fuel costs for the second consecutive quarter. With gas prices increasing by 46% and coal prices increasing by around 23% in the current quarter, compared to the previous quarter.
- The rise in coal prices, gas prices, and lignite prices have impacted power and fuel cost, while rising crude oil prices have increased the freight cost.
- Inventory turnover has stabilised at 31 days from 36 days on quarter-on-quarter basis. Similarly, trade payables have been reduced to 97 days from 107 days on a quarterly basis. Recovery from receivables has also improved to 34 days from 47 days on quarterly basis.
- The incremental are absorbed temporarily, if the trend continues eventually these will be passed on to customer
- The court case is under favour of kiri industries and will evaluate opportunities for settlement in buyout payment or having controlling stake in Dystar
- Hired a few more very senior project people who have joined the project team now. So earlier, it had 3 to 4 people in the project team, now have close to 10 people in project team and some of very senior people from GNFC and other leading companies, who have years of experience along with young team
Capex
- The new upcoming products are specialty intermediates, which are small in quantity for the niche requirement. There are about 26 products and to be launched one after another, on an annual basis,the first phase is expected to generate around ₹600-₹700 Crs in revenue