Q4 FY2024 FINEOTEX CHEMICALS CONFERENCE CALL
100 kW Solar plant commissioned.
Easing of chemical prices help expand EBIDTA margin.
ICRA upgraded rating.
ESG badge received.
Expansion Plan:
7-acre land from internal accruals of 35 cr. At ambernath plant for land and building, work already begin. Total 50 cr. Capex required for phase I.
It is fungible capacity, with better technology, increase volume and cater to all 3 streams textile/hygiene/oil drilling. It will for new/existing products.
Phase I will be 20000 T will be commissioned by FY2025, Phase II will be 20000 T, but cost and time will be lower due to infrastructure will be in place.
Looking for international acquisition with matching return ratios. It will be international and due diligence in progress.
Growth:
Confident of accelerated growth and efficient return ratio. What done in last 4/5 years had been done, can be done in next 4/5 years in percentage terms.
Business details:
Q4 volume contribution of textile and hygiene is 50%.
FY 2024 volume contribution of textile and Hygiene is 45%/50%.
Overall capacity utilization is 72% as of Q4. India is going to be specialty chemical hub of the world. Optimal capacity is 80%.
25% volume growth in total.
Company is not only for import substitute. Company also looks for export.
Other expense mostly related to exhibition and trade shows promotions.
From DOW/BASF material must come in 3 months and in drums. Fineotex supply in tanker load, which is preferable.
Previous FY was remarkably price correction; however, company manage EBIDTA. Average realisation prices must go up for chemical industries.
Textile is going to come back, which will be very helpful to company.
Raw material price increase passed to customer as Purchase Orders are for 1 to 2 months.
Sustainable solution provided by company is key and company provide those solutions. Fossil fuel-based chemicals will be stopped.
Fund raise
109 cr. by preferential issue at price of 387. 40, as per filing on Saturday as below link.
Conference audio:
D invested.
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