SRF Q2FY24 Concall:-
Specialty Chemical Business:
- Destocking and inventory rationalisation taking place at customer end
- Rescheduling of order but no orders were cancelled therefore Q3 will be better than Q2 and Q4 will be better than Q3 , H2 will be better than H1
- Single Digit growth guidance for whole year in SCB
- 06 new products launched in H1
- Complex AI pipeline on track
- 235 crore Capex for agro intermediate which can become AI in future
- MPP4 and PIP full potential will be seen from Q3 and in FY25
- 06 new products ( 04 agro and 02pharma) commercial quantity sent to customers , they are small today and still not factored in numbers because of these
- PIP : products sent to lab, some production started , realisation in FY25
- FY25, FY26 - 20% growth possible
- 90% SCB is contracted ( 6month to 3 years)
Flourochemical Business:-
- Volume were down and prices for ref gases were also down
- Weak summer in domestic market affected volumes
- US market Ref gases volume uptick didn’t come through as expected some because of china dumping
- Order for large customer in CY24 and CY25 tied up ( volume and price tie up also )
- R32 will be commissioning at end of Nov/Dec , delay because of govt. approval
- Volume pressure will be there in H2 also , Q4 should be better
- 125 will be phased out first then 134a and then 32 in US and EU
- Demand environment for some industrial chemicals also subdued
- Highest ever volumes sold for MDC ( Chloro methane derivative )
- Dymel now being sold in 27 countries
- Uptick in prices for HFC seen in India and M.East , Industrial Chemical will also be performing better in new quarters
- FY24 will see -ve growth
PFTE Plant :
- Commissioned with own technology
- 6-9 months for product approval
- new VAP and plant rampup will take less time than previously thought ( 2-4years)
- in next 2 years it will be fully ramped up
Pvdf some delay because of land
** fcam and fep** - pretty much online
PFB :
- supply increased → prices down
- 275 crore capex for capacitor grade film at Indore , IRR:15-16% , Payback period : 5-6years , At current prices margin > Current BOPP
- Aluminium foil now in trial phase
- Yes there are existing players in capacitor grade film but they are not doing well
- Demand - 14-15000 TPA and current capacity -7000TPA therefore majority is still imported
- contracted sales are 50-60 % , prices are formula linked
Coated Fabric segment - All time ever sales reported
Laminated Fabric -
- Record sales in H1
- some oversupply seen because of new capacity addition
Debt increased from 3250 crore in Mar 22 to 3900crore in Mar 23 because of interest rate increase and some because of Capex
Capex
- FY24 : 2900-3000 crore including 400-450 crore for land ( 80-85% in Chem. Business)
- FY25 : 2900-3000 Crore
Disclaimer - invested and doing SIP