GFL Limited & Inox Fluorochemcicals Limited

Q&A: Questions & Answers Company Q&A
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HI guys

CMP250

equtiy10.98cr

fv1

did anyone have a chance to look at this company

untill 2012 was benefitted by carbon credits post after its discontinuation company has almost doubled the capacity of PTFE and reinvested most of the money in wind energy business where they are producing energy and manufacturing turbines as well .

Its subsidiary arm INOX Wind coming up with an IPO soon

Cheers!

GFL-overview.xlsx (17.1 KB)

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i liked this company, got in early before Carbon Credits were not so known, and earned some money. I will have to look deeper now that you have shared some latest on it. But one different question… you have detailed ratio info on it. Did you manually created all that or have nay source that provides so many details? other than screener.in?

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Hi Anirudh,

I had been at the company recently & received info like some projects of company are on hold and has some cash flow issues. Dont expect any development till coming 2 to 3 qtrs.

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Mr. Vivek Jain â M.D, Mr. Deepak Asher â Director & Group Head (Corporate Finance) & Mr. Devansh Jain â Director (Wind Business).of the Co add the Call

Highlights of the Concall by Capital Mkt;

  • Total income from operations rose 89% on a YoY basis in Q3FY’15 to Rs 1621 crore while EBITDA grew 109% to Rs 308 crore. PBT was up 298% to Rs 182 crore while bottomline of the company increased 276% to Rs 107 crore.On a QoQ basis Total income from operations rose 27% while EBITDA grew 4%. PBT was up 9% and bottomline 1%.
  • For 9MFY’15 Total income from operations rose 68% to Rs 3788 crore while EBITDA grew 64% to Rs 795 crore. PBT was up 114% to Rs 420 crore while bottomline of the company increased 84% to Rs 258 crore.

Chemicals

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  • Total income from operations rose 5% on a YoY basis in Q3FY’15 to Rs 332 crore while EBITDA grew 31% to Rs 84 crore. Bottomline of the company increased 80% to Rs 27 crore.For 9MFY’15 Total income from operations rose 17% to Rs 975 crore while EBITDA grew 30% to Rs 256 crore. Bottomline of the company increased 26% to Rs 82 crore.
  • Going forward the company expects to see a healthy increase in topline and more than proportionate improvement in bottomline due to a combination of several factors- higher capacity utilization in the Polytetrafluoroethylene (PTFE) facility, improved PTFE realizations as it churned the product mix to higher value added grades and after reaching full capacity utilization shed lower value added grades, several cost reduction and revenue enhancement schemes that it is implementing during the current financial year and its planned entry into the fluoro-specialties segment.PTFE sales increased by about 10% to 2221 tonne in Q3FY’15 compared to 2072 tonne in Q3FY’15.PTFE realisation was about Rs 558000 per tonne in Q3FY’15 while it was around Rs 550000 per tonne in Q2FY’5 and Rs 538000 per tonne in Q1FY’15

Wind Turbine Business

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  • Total income from operations rose 228% on a YoY basis in Q3FY’15 to Rs 932 crore while EBITDA grew 345% to Rs 156 crore. Bottomline of the company increased 431% to Rs 101 crore.For 9MFY’15 Total income from operations rose 102% to Rs 1079 crore while EBITDA grew 129% to Rs 298 crore. Bottomline of the company increased 105% to Rs 179 crore.
  • The company is seeing extremely favorably regulatory environment in this sector reflected by stable and attractive wind policies across the four states in which it is active, reintroduction of accelerated depreciation, continuation of 80IA benefits, SAD (special additional duty) exemptions on components imported for the manufacturing of wind turbines and the release of the promised GBI (Generation based incentives) incentives.The company has an order book in excess of 1250 MW for wind power projects in Gujarat, Maharashtra, Rajasthan and Madhya Pradesh

Wind Power Generation Business

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  • Total income from operations fell 19% because of seasonality in nature of business on a YoY basis in Q3FY’15 to Rs 27 crore while EBITDA decreased 20% to Rs 23 crore.For 9MFY’15 Total income from operations rose 13% to Rs 155 crore while EBITDA grew 15% to Rs 145 crore. Bottomline of the company increased 73% to Rs 26 crore.
  • The company could see some modest capacity additions this year essentially from the equity provided by cash generated in the business. It does not expect to make any incremental cash investments in this business

Theatrical Exhibition

  • Total income from operations rose 40% on a YoY basis in Q3FY’15 to Rs 301 crore while EBITDA grew 80% to Rs 50 crore. Bottomline of the company increased 133% to Rs 14 crore.For 9MFY’15 Total income from operations rose 18% to Rs 799 crore while EBITDA grew 8% to Rs 117 crore.
  • In the Multiplex business the company expects to maintain the momentum of growth and profitability backed by a steady property pipeline that it is implementing, a robust flow of content and several measures it is implementing to improve our operating margins in the food, advertising and operational segments.

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  • The company continues to pursue both organic and inorganic growth opportunities in this business and believe that there are several opportunities for consolidation in this space going forward.
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Highlights of the Concall by Capital Mkt
Total income from operations rose 30% on a YoY basis in Q4FY’15 to Rs 1553.2 crore while EBITDA grew 86% to Rs 280.63 crore. Bottomline of the company increased 609% to Rs 327.68 crore.EBITDA margin rose from 12.7% in Q4FY’14 to 18.1% in Q4FY’15 while PAT margin rose to 21.1% in Q4FY’15 from 3.9% in Q4FY’14.For FY’15 Total income from operations rose 55% to Rs 5340.81 crore while EBITDA grew 73% to Rs 1035.01 crore. Bottomline of the company increased 215% to Rs 585.24 crore.EBITDA margin rose from 17.3% in FY’14 to 19.4% in FY’15 while PAT margin rose to 11% in FY’15 from 5.4% in FY’14
Chemicals
Total income from operations rose 13% on a YoY basis in Q4FY’15 to Rs 347.45 crore while EBITDA grew 30% to Rs 67.66 crore. Bottomline of the company was Rs 300.13 crore compared to Rs 10.29 crore in Q4FY’14.For FY’15 Total income from operations rose 16% to Rs 1320.97 crore while EBITDA grew 45% to Rs 282.33 crore. Bottomline of the company increased 414% to Rs 382.35 crore.Q4 FY15 and FY15 PAT includes an exceptional item of Rs 293.7 crore and Rs 279.05 crore respectively, which primarily includes Rs 3,02.72 crore gain from the Offer for Sale (sale of 10 mn Inox Wind Limited shares) by GFL as a part of Inox Wind Limited IPO. Q4 FY15 and FY15 PAT also includes the impact of higher deferred tax liability of Rs 9.9 crore due to change in depreciation policy as per new Companies Act 2013.Segment wise Caustic soda sales decreased 15% to Rs 65.56 crore in Q4FY’15 while
chloromethanes sales rose 20% to Rs 71.08, refrigerant gases rose72% to Rs 67.25 crore and PTFE sales increased 5% to Rs 120.09 crore.
Wind Turbine Business
Total income from operations rose 35% on a YoY basis in Q4FY’15 to Rs 930.05 crore while EBITDA grew 212% to Rs 170.38 crore. Bottomline of the company increased 157% to Rs 117.88 crore.
For FY’15 Total income from operations rose 73% to Rs 2709.93 crore while EBITDA grew 160% to Rs 457.44 crore. Bottomline of the company increased 124% to Rs 296.42 crore.
Wind Power Generation Business
Total income from operations fell 4% because of seasonality in nature of business on a YoY basis in Q4FY’15 to Rs 35.83 crore while EBITDA increased 1% to Rs 32.35 crore.For FY’15 Total income from operations rose 9% to Rs 188.83 crore while EBITDA grew 13% to Rs 175.82 crore. Bottomline of the company decreased 71% to Rs 4.48 crore.
Theatrical Exhibition
Total income from operations rose 16% on a YoY basis in Q4FY’15 to Rs 217.75 crore while EBITDA fell 36% to Rs 10.51 crore. Bottomline of the company was loss of Rs 4.06 crore compared to profit of Rs 1.54 crore in Q4FY’14For FY’15 Total income from operations rose 17% to Rs 1016.81 crore while EBITDA grew 1% to Rs 122.77 crore.
Business strategy and Outlook
Major capex for expansion of PTFE capacity to 18,000 MT and corresponding increases in capacities across the entire value chain already incurred. Going forward Ongoing capex is expected to be minimal – to the tune of Rs 100–150 crore per year, for debottlenecking, adding higher value added products, waste recovery and other cost optimization schemes .The company expects significant improvement in capacity utilization, from present 60% to 100% over next 2 – 3 years due to investments made in marketing efforts.Improved capacity utilization will result in higher margins due to economies of scale and operating leverage.Increased contribution due to churning of product mix in favour of higher value added grades of PTFE. Introduction of new value added products in the company’s product basket will further improve margin profile.Surplus TFE capacity from recent debottlenecking to add significant value to the fluoro speciality business

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Highlights of the Concall by Capital Mkt
Total income from operations rose 59% on a YoY basis in Q1FY’16 to Rs 1412.76 crore while EBITDA grew 56% to Rs 269.66 crore. Bottomline of the company increased 67% to Rs 73.82 crore.
EBITDA margin rose fell from 19.5% in Q1FY’15 to 19.1% in Q1FY’16 while PAT margin rose to 5.2% in Q1FY’16 from 5% in Q1FY’15.Segmentwise chemical division formed 25% of total sales in Q1FY’16 (31.8% in Q1FY’15) while wind turbine manufacturing business was 45% (34.2%), wind farming business was 3.2% (6.4%) and film exhibition business was 24.7% (26.1%). Intersegment revenue was 2.1% (1.05%).For Segment wise EBITDA chemical division formed 29% of total EBITDA in Q1FY’16 (28.2% in Q1FY’15) while wind turbine manufacturing business was 32% (27.1%), wind farming business was 14.3% (30.7%) and film exhibition business was 24.3% (16.9%). Intersegment revenue EBITDA was 0.4% (-3%).
For Segment wise PAT chemical division formed 36.7% of total PAT in Q1FY’16 (38.3% in Q1FY’15) while wind turbine manufacturing business was 68.4% (53.2%), wind farming business was 0.9% (23.6%) and film exhibition business was 34.2% (10.4%). Intersegment revenue PAT was -40.2% (-25.4%).
Chemicals:Total income from operations rose 24% on a YoY basis in Q1FY’16 to Rs 352.72 crore while EBITDA grew 60% to Rs 78.2 crore. Bottomline of the company was Rs 27.08 crore compared to Rs 16.92 crore in Q1FY’15.Strong growth in revenues was due to commencement of speciality chemicals and exports of refrigerants while Improvement in margins was due to higher operating efficiencies
Segment wise in chemical division Caustic soda formed 18.9% of total sales in Q1FY’16 (24.2% in Q1FY’15) while chloromethane revenues was 16.5% (19.4%), refrigerant gases sales was 27.7% (8.9%) and PTFE revenue was 27.4% (42.1%) and other chemicals revenue was 9.5% (5.4%).
Wind Turbine Business:Total income from operations rose 109% on a YoY basis in Q1FY’16 to Rs 635.83 crore while EBITDA grew 84% to Rs 86.37 crore. Bottomline of the company increased 115% to Rs 50.5 crore.
Wind Farming Business:Total income from operations fell 19% because of seasonality in nature of business on a YoY basis in Q1FY’16 to Rs 45.82 crore while EBITDA decreased 28% to Rs 38.54 crore while PAT was down 94% to Rs 0.68 crore.
Film Exhibition:Total income from operations rose 50% on a YoY basis in Q1FY’16 to Rs 348.68 crore and EBITDA increased 123% to Rs 65.57 crore. Bottomline of the company was up 452% to Rs 25.26 crore.
Business strategy and Outlook:Major capex for expansion of PTFE capacity to 16,200 MT and corresponding increases in capacities across the entire value chain has already been incurred. Going forward ongoing capex is expected to be minimal – to the tune of Rs 1,00 – 1,50 crore per year, for debottlenecking, adding higher value added products, waste recovery and other cost optimisation schemes.The management shall now focus on improving capacity utilization and operating margins.
The company expects significant improvement in capacity utilisation, from present 60% to 100% over next 2 – 3 years. Improved capacity utilisation will result in higher margins due to economies of scale and operating leverage.The company shall focus on HF and TFE based fluoro speciality chemicals to cater to the pharma and agro chemical industries. Surplus TFE capacity from recent debottlenecking to add significant value to the fluoro speciality business in the future.

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Is somebody still following this company. Came across this article on demerger of chemical business happening in Gujarat Fluorchecmicals which seems to be a holding company of lot of other business. As mentioned in the previous post, the wind energy business isn’t doing that well. Do let me know if someone tracking this company.

Check out the article - Gujarat Fluorochemicals demerges Chemical Business

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Now The company became GFL Limited and a holding company, when can we expect demerged shares to be listed in our DMAT accounts?

Scheme of arrangement - 16th July.

Annual report of GFL

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Any one has a view on value of the holding company. It was falling from the levels of 144 to around 44 by now.

Disc: Less than 1% holding