Q2-2025(oct 2024) concall
1…Highest quarterly volume and export volume
2…NL(Overcapacity is problem)
=Significant increase in nitrile latex and gloves inventory due to overcapacity from COVID-era production.
=Current capacity utilization around 60%, with EBITDA margins slightly negative.
=Margins pressured by overcapacity in the global market and high inventory levels.
3…NBR(Dumping is problem)
=Anti-dumping duty case initiated by the government; expected findings in 8-12 months.
=Current high imports of NBR impacting margins; positive EBITDA achieved but not sustainable.
=Expansion plans on hold pending anti-dumping case results and market conditions.
=nbr@dumping by china and russia due yo their slowdown
4…Carpet and Paper Product Challenges:
=Increased capacity by competitors leading to margin pressure in the paper segment.
=Freight rates significantly impacted by geopolitical tensions, especially in routes affected by the Red Sea situation.
=Overall pressure on margins expected to persist into Q3.
5…SB latex
=Exports accounted for 32% of total sales; SB latex exports grew by approximately 16-17% in value.
=Competitive landscape primarily against European players for SB latex
6…Strategy
=our strategy has been very clear that we are going to push
through with volumes as far as possible, even at lower margins and as and when overall the
external scenarios change we will be benefited
=Management remains cautiously optimistic about long-term growth potential despite current challenges.
=Plans to invest in R&D and renewable energy
Disc…invested
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