Operational Highlights
- Revenues stood at ₹1356 Cr, 17% growth YoY from ₹1162 Cr in Q3FY21
- EBITDA grew by 8% YoY to ₹297 Cr
- 19% growth in export business and 8% growth in domestic business
- Overhead increased by 24% mainly attributed to increase in power and other utility cost
- Hike in selling prices partially cover the incremental overheads and full impact to be reflected in next quarters
- Gross margins stood at 46% and EBITDA margins at 22% for Q3FY22
- Lower export incentives, partial cost pass through, etc. marginally impacted the gross margin despite favourable product mix
- Overheads increase of 24% is mainly attributable to sharp increase in fuel and related utilities, shipping cost and one‐time expenses
- Maintained higher inventory levels of ₹1,355 crore compared to last year
- Q4 demand is expected to be good for insecticides, fungicides and bio‐nutrients owing to robust commodity prices and positive crop sentiments
- One new process innovation to be commercialised in Q4.
- Expecting substantial increase in volume for new products in 2-3 years
- Contract manufacturing business is always working on cost benefit arbitrage so there is no pressure on manufacturing cost.
Client leads
- Surge in new enquiries/products scale up driving the growth of CSM Export
- 32 new enquiries received: More than 35% from non agchem space
- 8 new customers were acquired during current fiscal
- robust order book of ~$1.4 Bn
Agri products launches
- One new insecticide for rice and two specialty fungicide focused on horticulture and rice launched
- Successful launch of 12 new products in horticulture segment
- During Q3, received regulatory approval for 1 insecticide in cotton, 1 insecticide in rice, 1 specialty fungicide for horticulture
R&D
- 4 new molecules commercialised and 3 more planned in Q4FY22
- >40 products at different scale up stages of which more the 20% are non agrochemicals product
- Continuous flow chemistry developed for 1 intermediate at pilot plant
- Implemented technology to improve solvent recovery
Expansions
- 1 more Multi Product Plant (MPP) fully commissioned in Q3
- New chemistry building block (MMH) commissioned in Q3
- Overhead increased by 24% mainly attributed to increase in power and other utility cost
- Evaluating various M&A opportunities in India and globally