Q3FY23 Results Press release.
Q2FY23 Revenue up 20.2% YoY,
EBITDA margin improved by 107bps to 19.1% QoQ
PAT margin improved by 161bps to 13.0% QoQ
Commenting on results, Mr. Naresh Patel, Executive Chairman & Managing Director, said:
“We continue our robust trajectory with 20% YoY growth during Q2, primarily driven by a significant increase in the Advanced pharmaceutical intermediate business which grew by 25% YoY. That said, the Company witnessed a flattish growth in the specialty chemicals business.
Margins continue to strengthen as we keep tight control on cost as well as because of lower freight rates. I believe margins will continue to see the improvement in coming quarters.
We have successfully developed Methyl Salicylate using flow technology which is expected to commercialize from Q3 onwards. This shift in manufacturing technology has resulted in a considerable reduction in production time, 3x capacity expansion, and cost savings of around 5-7%.
Electrolyte additives continue to see good inquiries from clients across the globe and we expect
to commercialize the product before the end of FY23.
Overall, I remain optimistic about our business growth in the coming quarters and years on
the back of various strong growth levers.”
Key Results Highlights (Consolidated):
✓ Revenue from operations for Q2FY23 grew by 20.2% YoY to Rs.1,470mn; Sequentially
revenue grew by 12.2%
✓ The Gross margins for the quarter were at 48.0% as compared to 54.0% in Q2FY22 and
48.8% in Q1FY23.
✓ EBITDA for the quarter came at Rs. 281mn up 2.8% YoY compared to Rs. 274mn in Q2FY22
and up 18.8% on a sequential basis compared to Rs. 237mn in Q1FY23
✓ EBITDA margins for the quarter were at 19.1% as compared to 22.4% in Q2FY22 and
18.1% in Q1FY23. We have been able to improve our EBITDA margin on a sequential basis
due to improvements in operating expenses whereas lower EBITDA margins of the
Specialty Chemical business continue to put pressure on consolidated EBITDA margins.
✓ PAT for the quarter was at Rs. 190mn up 9.0% on YoY basis. The PAT margins for the
quarter were at 13.0% as compared to 14.3% in Q2FY22 and 11.3% in Q1FY23.
Key Business highlights:
✓ Export at 58%; domestic business at 42%
✓ Specialty Chemicals – Methyl Salicylate:
Successfully developed Methyl salicylate using Flow Chemistry. Successfully erected
Flow reactor at Jhagadia plant and expect to start production from Q3FY23.
This will result in increase in volume capacity by 3x and cost saving of 5-7%
✓ Electrolyte additive update:
o Expecting commercial trial order in November 2022
o Products are in various stages of qualification with customers in China, Korea, India, and Europe
o Expecting commercial orders to start from the first half of the calendar year 2023
✓ Import Substitute Product Updates:
o Received trial order for agrochemical intermediate. Expect to commercialise the
same in Q3FY23
o Received trial order for pharmaceutical intermediate from European client and expected to commercialise the same in Q3FY23
✓ Capex Update: Company has received Environmental clearance. Excavation work is
completed. Civil construction is Started. Started ordering machinery for the plant.
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