I attended Dynemic AGM for FY23 through VC, following are some notable points from that (there might be mistakes in my hearing/understanding) –
- China dumping has subsided to a large extent
- Current realizations are not-so-good and not-so-bad
- Capacity (Food Colors – 6K, Dye Intermediates – 14K)
- Production (Food Colors – 4K, Dye Intermediates – 1.4K)
- Production volume for Dye Intermediates includes both captive as well as external sales above. This is the level of under-utilization in DI plant.
- 12-15% of RM is imported. Rest of the RM is either sourced from domestic players or captively produced.
- For FY24/FY25/FY26 – debt repayment is 32cr – including principal + interest
- QIP is to fund working capital – so that we can increase production. When we did rights issue, there was a shortfall – looking to raise 25cr, only raised 16cr. Hence needed to do this. Not looking to raise any more funds post this.
- DI – 55% will be sold externally and rest will be captively consumed. DI sales will be primarily in domestic market, food colors are primarily for export markets.
- Power & Fuel cost are elevated compared to previous years is due to underutilization of new plants.
- Will be able to get back to 20% margins at the revenue level of 380-400cr.
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