Operational Highlights
- Revenues for the quarter stood at ₹428.4Cr, up 104% from same period previous year
- EBITDA stood at ₹46.7 Cr translating to EBITDA margins of 10.9%
- PAT stood at ₹22.5 Cr with PAT margins of 5.3%
- Delivered steady performance during the quarter despite a challenging inflationary macro-environment
- Undertaking price hikes wherever possible to offset these persistent raw material pressures.
- This is the first full quarter of consolidation of recent acquisitions of Unitop and Tristar in Rossari’s performance. Both these companies delivered growth during the period, which assisted overall performance.
- Latest acquisition of Romakk Chemicals has now been consolidated with effect from December 01, 2021. The timely integration of Romakk will further strengthen presence in the textile and Home and Personal Care segment
- On a standalone level, Rossari registered organic growth of 30.6 % YoY ➢ Revenue contribution from the HPPC segment stood at 71%, followed by TS
- Depreciation was higher owing to amortisation of fair valuation on account of consolidation of subsidiaries
- Actively undertaking cross selling opportunities and exploring new geographies
- Targeting ₹270 odd Crs of turnover per quarter
- Acrylic acid prices last month was 2000$/ton and suddenly this month it has gone up to 2700$/ton
- Volatility in raw material prices is expected to continue for next 2 quarters
- Utilisation at dahej stood at 50-60%.
- For ₹2500 Cr revenue generation, no more additional capex is required, only maintenance capex to continue
- Strategy is to procure at low rates from spot market and servicing all the customers during these difficult times is what will eventually pay off in long term horizon
- Q1 is expected an improvement on supply and prices side
- Volumes are lower on QoQ basis but higher on YoY basis. However major growth is on behalf of hike in prices
- Antiviral and antimicrobial for textile are more consumer based products catering to large manufactures like Marks&Spencer and others. Towel manufacturers are one of the largest consumer of these products, however these additives makes up only 5% of composition of final product
Segmental split
- HPPC- revenue for this segment stood at ₹305.24 Cr contributing 71% to total revenues. The segment grew 155.2% YoY and 29.3% on a QoQ basis.
- The business reported healthy sales supported by stable traction in FMCG, anti-viral & personal hygiene product portfolio volumes
- TSC- Revenues for the segment stood at ₹102.8 Cr translation 24% contribution to revenues. The segment grew 31.5% YoY, however it contracted by (-6.3%) on a QoQ basis. Growth driven by a pickup in demand in domestic and export markets
- AHN- Revenues for the segment stood at ₹20.38Cr i.e. contributing 5% to total revenues with growth of 67% YoY. however the segment contracted by (-47.3%) on a QoQ basis. Growth driven by a pickup in demand in domestic and export markets
Product introductions
- Introduced new technology i.e. polyester resin
- Introduced new green products i,e, green urea and green silicate.
- Substitutes for bleach
- Introduced lycra protector, water repellents, acrylic polymers etc