Concall Summary Date: 13 May 2024 FINE ORGANIC INDUSTRIES LIMITED
FINANCIAL HIGHLIGHTS
On a YoY basis, the EBITDA declined by 29.1% YoY ₹143.5 crore, and the EBITDA margin stood at 26.2%.
On a QoQ basis, the revenue from operations increased by 12% and EBITDA grew by 21.3%.
In FY24, the EBITDA declined by 35.7% YoY to ₹534 crore and EBITDA margin stood at 25.2% (v/s 27.5% in FY23).
The cash and cash equivalents & bank balance stood at ~₹961 crore in FY24 (v/s ₹497 crore in FY23).
BUSINESS PERFORMANCE
In FY24, ~52% of the total revenue from operations was from exports
The domestic market performance was partially offset by the global slowdown impact.
Fine Organic customers are located worldwide including Europe, North and South America, the Middle East, Asia, Africa, Japan, and China.
Stable demand dynamics have led to a steady pricing environment for vegetable oil. The company does not foresee much volatility in the price for the next few months
The company witnessed some headwinds for exporting goods to Europe and the US due to the Red Sea crisis.
Currently, the company’s all plants are running at optimal capacity except the Patalganga plant.
The Patalganga plant was started in March 2022. It will take another 2-3 years to run at full capacity utilization.
The company witnessed recovery in all the regions except Europe.
FUTURE OUTLOOK
For the Maharashtra Special Economic Zone (SEZ) plant, the company is waiting for land allotment letter. The SEZ land area is ~30 acres. The plant would be commissioned by the end of FY26 and primarily cater to the export market.
The management expects the Thailand plant to be commissioned by the end of June 2024. This is a very small plant. The initial focus would be on small trial production of a product. Further investment decisions would be determined after the performance of the trial production.
The company would incur investment for capacity expansion in the new SEZ plot, exploring acquisition opportunities and it is also considering putting up the plant outside India. It plans to utilize its cash and bank balance for the same.
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