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.