Posting here as post hasnt been approved in collaborators thread.
GFL Concall Q4FY23
-YOY growth of 40%+ in topline. -EBITDA growth for FY23-71% and for Q4 it was 61%. -Q4PAT growth of 52% YOY.
-ROE and ROCE crossed 20%. -D/e at 0.23 times.
-By Q1FY24, adding 1300-1500 tonnes of capacity. New capex we put in, takes almost a year to give full capacity. -FY24 and FY25 expect growth due to New age fluoropolymers and Battery chemicals.
-Expecting Ref gas revenues to be subdued in Q1FY24 due to the weather in Delhi and other parts of India.
-In Fluoropolymers, prices have corrected marginally. -Optimistic on PVDF, FKM, PFA for growth and looking at entire bouquet of battery chemicals. Will be making Electrolyte, commissioning plant by Q2FY23.
-New site for future expansions. -Expect ref gas prices to remain stable. Demand can be subdued in Q1FY24.
-Growth will be led by New age fluoropolymers, and revenue will go up.
-1500 crores of Capex this year. 1000 crores in Fluoropolymers and Battery Chemicals. FKM, PFA and PVDF will come up by Q1 and Q2 FY24. Capacity utilisation will take several quarters from there on. FY25- We will see full utilisation. –
Margins will be at 30%+. -If prices are constant, in fluoropolymers. We see 1000-1200+ crore per Quarter once all capacities for Fluoropolymers are utilised. -1100 tonnes per month, 1500 per month in Q1 and further capacities will be added. By end of the year will be 1700-1900 tonnes per month
. -PTFE capacity is coming by Q3FY24 end. 3M will be in operation till end of CY24. Impact on volumes will be seen by the beginning of next FY.
-FY25, we will see revenues in battery chemicals. Qualification times are 4-6months.
-On Working capital:- bought down from 155 to 120 days. Currently at 128 days. Lag effect of inventory we are building up for new capacities.
-Marginal Price correction in New age Fluoropolymers, not seeing much impact on volumes side. -Corporate guarantees, reducing it on QOQ basis. See the reduction on a continuous basis. Guarantees have never been invoked or triggered.
-2 Applications of PEM: Making electrolyzers, ad second for Fuel cell for electricity. Present in both segments, tied up with ONGC for one segment and in the other doing our own tech development.
-Straight away going for a commercial scale plant in Battery chemicals. Not going for a lab scale. Commercial sales will happen by Q3 and Q4.
-Qualification for Solar panel back sheet is currently ongoing. PVDF films plant will go live in Q2. PFA for semiconductor, going through various stages of qualififactions.
-Expect full utilisation of New age Fluoropolymers capacities by the end of this Financial Year.
-Qualification period for New age fluoropolymers like PVDF for EV, and Semiconductor take at least minimum of 6months. PFA qualification we are expecting earlier.
-Q1FY24: Purely shutdown for PTFE. Annual shutdown we do every year. PTFE only. -In our case: not seeing significant impact on PVDF. As PVDF capacities will go live in Q2FY24. Due to Chinese slow down in EV, prices might have declined in the short term.
-Confidence in Electrolytes and Salts are coming due to the growth in the sector. Volumes and capacity will be small vs the market potential. -FY24: Top-line is expected to grow by 20%.
-Transition to PFAS free. Already converted 80%, and by end of this FY expect complete conversion. 100% PFAS free by end of this Financial Year.
-18 crores: Part of renumeration paid to MD and the Chairman. Note 3. Not a red flag.
Disc: same as before.
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