Disappointing Numbers. Similar to what we saw with Laxmi Organics.
the energy cost literally killed the bottom line.
• ENERGY COST INFLATION: Coal was not supplied by Government as per arrangement. Because of this, coal had to be imported at sky high prices. 45cr impact. From 1st of December Government supply should resume.
Raw material input cost increase passed on but unprecedented coal prices couldn’t be passed on. Expect to pass on some cost in q2.
• VOLUME GROWTH: Speciality Chemicals revenue grew by 26% YoY driven by volume growth across product segments
Chemical Intermediates volume have grown while revenue is impacted mainly due to lower prices of key RM i.e., Acetic Acid. Acetic Anhydride volumes grew by 22% on YOY basis
• QOQ DIP IN SPECIALITY CHEMICALS VOLUME:
China 2-3 months lockdown impacted some export volumes.
They had to change Catalyst in one plant (changed every 6-7 years), that impacted some production and subsequent sales of SC.
Both of the situations are now normalizing. Expect volume growth QOQ in Q2.
• Share of revenue to customers having Agro Chemical end use grew significantly.
Speciality chemicals: Serving 15 of top 20 Global Pharma & 7 of top 10 Global Agrochemical companies
• EUROPE: Big growth in sales and market share in Europe for Acetic anhydride due to new uses for anhydride
• ANIMAL NUTRITION: Sales impacted due to avian and swine flu in US and Europe. Situation said to be improving. To normalize by quarter/year end.
• Diketene plant fully stabilized. Sales to start contributing from Q2 onwards.
• All Capex plans going as per plan.