Some excerpts from the concall transcript:
Dyestuff contributed to 13% of revenue for fy 2017, with higher contribution of around 19% in quarter 4. Dye intermediates which comprises of around 63% of the revenue, saw a volume growth of about 21% from last year. While in value terms, the dye intermediates business grew by about 15%. Co sold almost 1,400 tons of dyestuff in comparison with our capacity of 3,000 tons, all of it post Sep 16. And plans to sell about 4000 tons in FY18.
The fertilizer segment contributed about 19% to the sales and witnessed a volume growth of about 8% and revenue growth of about 18%
implemented and improved our zero-waste ideology over the past few years
Speciality chemicals generates high level of waste, companies like Shree Pushkar Chemicals which have a compliant status have many advantages and stand to gain from China's gradually declining share in the global colouring industry
Foray into textile chemicals very soon will position us as a complete textile solution provider company. There's a good explanation on the importance of textile chemicals on pg. 17
7%-8% of revenue from exports. Export volumes will be much larger in fy18. Blue Sign accreditation is a very high quality standard accreditation given by a company based in Switzerland that is highly respectable accreditation expected to boost international marketing for the dyestuff. Accreditation expected by Q2-Q3.
CAPEX for financial year 2018 will be roughly around Rs.15 crores. New dyestuff capacity is under implementation and should be completing by Q1 fy2018. Doubling dyestuff capacity by 3000 tons per year by Q1-Q2 fy 18 (current capacity is 3000 tons per year), b) doubling of SOP capacity by Q3 fy 18 –from 10000 tons to 20k tons
Ballpark realization in dyestuff is around Rs. 300 to Rs. 350 per kg. In the last quarter average Vinyl Sulphone realization was around Rs. 275 approximately similarly H-Acid also close to 400 some odd amount. Price trend has been reducing over Q1 to Q4, Hence management expects these will go up going forward, but prefers that they remain stable, even if no increase. Increase in volumes was main contributor to the financials.
GST - existing tax rates as of now is 12.5% excise and then it is 6% VAT or the 2% CST. I believe the new tax rates have not been published up till now. But co believes that it should be around in the same range or 1% or 2% higher.
The situation is not at all clear in China. In fact, Hubei Chuyuan started only for inhouse consumption of intermediates and producing dyestuff from those intermediates. They are not yet into the market for selling of the intermediates. They are not able to start their capacities to the fullest level. Compnay said that they heard that again Hubei Chuyuan faced some big problem and either they have shut again or they are going to be shut again. in China, the things are traveling from bad to worse slowly and gradually. The same thing has happened in Europe also, almost 20-25 years back that all the facilities of these kinds of products from Europe vanished. Same thing, same process, now China is going through.
(this bodes v well for bodal)
Receivables of 43 crores has become 62 crores this year, that is increase of 19 crores. Of that, Rs. 8 crores is of Huntsman against whom we have a summary suit, against whom a cheating case has been filed, a winding up petition has been filed, many steps have been taken. rest of the trade receivables that is all normal trade receivable because volume of business has also gone up.