Let’s not jump. Call is tomorrow 11:30am. Let’s wait.

(post deleted by author)

Q3 FY 24 Concall summary
BUSINESS
● Gross operating revenues declined by 12% Y-o-Y to INR3,053 crores.
● Profit after tax came in at INR253 crores in Q3 FY24, down by about 50% Y-o-Y.
● Chemicals’ revenue (46%/70% of total sales/EBIT in 3QFY24) dropped 21% YoY to
INR1390cr while EBIT declined 43% YoY to INR320cr EBIT margin contracted 900bp YoY to
23.1%. The specialty chemicals business continued to face headwinds due to inventory
rationalization by certain key customers, while the Fluorochemicals business was hit by
seasonally low demand for refrigerants. However, it witnessed improved performance in the
later part of the quarter. Management is expecting a recovery in 4QFY24.
● Packaging Film’s revenue (36%/10% of total sales/EBIT in 3QFY24) declined 9% YoY to
INR1090 cr and EBIT was down 62% YoY to INR44.9 cr. Margin contracted 570bp YoY to
4.1%. This downturn was largely due to the oversupply in both BOPET and BOPP film
segments.
● Technical Textiles’ revenue (15% each of total sales/EBIT in 3QFY24) grew 8% YoY to
INR460cr EBIT margin expanded 700bp YoY to 15%. EBIT surged 2x YoY to INR68.8cr The
segment performed well owing to healthy domestic demand for (NTCF)Nylon Tyre Cord
Fabric coupled with strong demand for belting fabrics and polyester yarn.
● Introduced three new products in the agro vertical and successfully commissioned two large
dedicated agro facilities.
● Successfully commissioned the PTFE and the R32 plants in Q3.
● Aluminium Foil facility on January 1, 2024. This phase represents an investment of around
INR536 crores asset turn should be 1.7-2 times. Looking at getting accelerated approvals from
both local and global customers, 6 to 12 months for some of the global approvals to come
through.
● Roughly about 90%-91% was our capacity utilization in Packaging Film’s
● Interim dividend at a rate of 36%, equivalent to INR3.60 per share
● Operating leverage will play out in PTFE over the next 6 to 12 months, or maybe slightly
more than that.
● 35-40 products that we supply, total dedicated plants 17-18.
● Q1 is the strongest quarter.
MANAGEMENT GUIDANCE
● Management plans to incur ~INR20-22b of capex in FY25.
● Management is expecting a recovery in 4QFY24.
● BOPET, I think it’s a story which will probably take another 12 months, maybe slightly more
than that, to kind of normalize. BOPP is doing better. There are no new supplies that we hear
around it, but the Chinese will always keep putting up new lines. There will be some pressure
on that as well.

Results are weak. Let’s wait for tomorrow’s call.

May see some selling pressure, hopefully it doesn’t last too long.