IPL witnessed good expansion in margins due to change in product mix. Volumes were lower by 30% given the industry scenario. Among peers, IPL reported one of the best nos. Concall notes below.
FY24Q3
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Witnessed 30% lower volumes, blended pricing was same
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Outsourced conversion of on raw material and paid job work charges of 4 cr. (part of other expenses resulting in higher GMs). Adjusted for this , gross profit margin was 50%. Believe 48-52% GMs are sustainable
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Entered a 3-year contract with a Japanese company to supply an intermediate
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Received Technical Equivalence (TEQ) certification by European Union (EU) for herbicide technical product
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China is putting up very large plants for popular products
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Expect 15-20% sales growth in FY25
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Incorporated “Amona Specialities Private Limited” (asset light marketing company)
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Have spent 60 cr. in 9MFY24 (budget of 110 cr. for Sandila + Hamirpur)
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Raw material pricing has stabilized
Disclosure: Not invested (no transactions in last-30 days)
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