Company came out with flattish set of nos, when the entire industry is going through a lot of pain. They have been able to get their volumes back, and are focusing on their new molecule pipeline. Concall notes below
FY24Q1
- Industrial division is performing well and is expected to do well in FY24. Phosphorus and derivatives business is specially doing well and UPL family is very strong in this
- Next few quarters will be challenging due to inventory positioning of different companies. They are maintaining low inventories and working on just in time model to ensure sustainability of margins
- Hope to improve margins by 50-100 bps in rest of FY24
- Slight dip in gross margins was due to change in product mix
- Aggressively going for new business opportunities
- FY24 capex: 40 cr. (spent 9.5 cr. in Q1). Have replaced older reactors with new ones which increased reactor capacity to 2000 KL (vs 1300 KL in FY23Q4)
- NextFerm: Pharma has been slow and this ramp up has been delayed, contribution will only come next year
- Prosulforcarb: did not lose the contract, but registration in Australia was delayed during COVID. Their consultant has guided that they should get registration in Europe by September 2023 and they are expecting to have revenues in Q3FY24
- Greenfield expansion: Looking aggressively for land in Gujarat/Maharashtra
Disclosure: Invested (position size here, no transactions in last-30 days)