Chemcon speciality Chemicals Ltd, conducted their conference call today at 2:30 pm.
"Leading sustainable growth with New product's, New clients, New application, and New opportunities."
Here are the key takeaways😁😁...
"Leading sustainable growth with New product's, New clients, New application, and New opportunities."
Here are the key takeaways😁😁...
Business Outlook
- Company has performed excellent during this year.
- They have been able to maintain its global presence and have maintained their growth CAGR around 17%.
- Company has performed excellent during this year.
- They have been able to maintain its global presence and have maintained their growth CAGR around 17%.
- As they are involved in manufacturing and delivery of complex materials in large scale they don't face any major issue with new entrants.
- They tend to continue being cost effective in their production work. They have dedicated plants for each products.
- They tend to continue being cost effective in their production work. They have dedicated plants for each products.
- Along with that constant re engineering is done for effective raw material consumption.
- They expect strong growth in pharma along with moderate recovery in their oil industry.
- They expect strong growth in pharma along with moderate recovery in their oil industry.
- Company has maintained strong long lasting relationships with their pharmaceutical Chemcials clients for both HMDS and CMIC.
- As well as for their oilwell completion chemicals base for inorganic bromides.
- Companies top 5 clients Currently contributes about 55% of revenues.
- As well as for their oilwell completion chemicals base for inorganic bromides.
- Companies top 5 clients Currently contributes about 55% of revenues.
- Many of their clients are with them for more then decades, and they are doing their best to increase its new product base as to reach out to new customers.
- These new product examples are 4CBC, 2,5DHT.
- These new product examples are 4CBC, 2,5DHT.
Segments
- Company currently is present in 4 segments CMIC, HMDS, Bromides and others.
- Currently out of 4 HMDS has been highest contributor of the business revenue. But in terms of growth, CMIC has shown big jump compared to Fy15.
- Company currently is present in 4 segments CMIC, HMDS, Bromides and others.
- Currently out of 4 HMDS has been highest contributor of the business revenue. But in terms of growth, CMIC has shown big jump compared to Fy15.
- In HMDS and CMIC, company contribute about 10% and more of the global markets.
- They are well established to substitute the imports done by Companies and target to maintain its growth trajectory.
- This is because Company is only and the largest manufacturer of HMDS and CMIC
- They are well established to substitute the imports done by Companies and target to maintain its growth trajectory.
- This is because Company is only and the largest manufacturer of HMDS and CMIC
- With above products, major of business comes from Speciality segment and oilwell segment.
- Compared to last quarter there has been an increase in oilwell segment.
- Bromides are currently at a utilisation of about 13%, even with price now, & price is expected to decrease.
- Compared to last quarter there has been an increase in oilwell segment.
- Bromides are currently at a utilisation of about 13%, even with price now, & price is expected to decrease.
For HMDS Company has one plant is fully utilised and they have another plant ready, which is currently working on trial basis can be meet increase in utilisation.
- The margins for HMDS will vary around 30 to 40 % as on how much production is done.
- The margins for HMDS will vary around 30 to 40 % as on how much production is done.
P&D and expansion
- With proper raw material procurements, new products innovation are undertaken and few of them are at final stages.
- At present there are 7 operational plants, 3 owned and 5 leased Wearhouse and 2 proposed expansion plants under process.
- With proper raw material procurements, new products innovation are undertaken and few of them are at final stages.
- At present there are 7 operational plants, 3 owned and 5 leased Wearhouse and 2 proposed expansion plants under process.
- These plants 8 and 9 are proposed multipurpose plants for pharma intermediate chemicals and are expected to finish around Q2 and Q3 of Fy22.
- This will push capacity levels to about 626 KL.
- Due to covid there has been a delay but timings will be covered.
- This will push capacity levels to about 626 KL.
- Due to covid there has been a delay but timings will be covered.
- Capex of about 38cr was incured during this Period, some of it was from internal accrual and some from IPO funding.
- Company is also expecting to launch plants 10 and 11 also, in the times fo come.
- And in existing plant, production will be enhanced somehow.
- Company is also expecting to launch plants 10 and 11 also, in the times fo come.
- And in existing plant, production will be enhanced somehow.
- When new expansion is done the company estimates a time of about 2 years for it to be break even.
- The company is doing its best to gain the left around 2000 import demand that India creates.
- Crude oil price are in a way linked to Bromides business.
- The company is doing its best to gain the left around 2000 import demand that India creates.
- Crude oil price are in a way linked to Bromides business.
Financials
- There has been a good jump in revenue on Quarterly basis but a bit of drawdown was seen in EBITDA and PAT levels.
- Company has increased its Exports sales this quarter to 29% compared to 21% last quarter.
- Company has reduced it's debt by a great margin.
- There has been a good jump in revenue on Quarterly basis but a bit of drawdown was seen in EBITDA and PAT levels.
- Company has increased its Exports sales this quarter to 29% compared to 21% last quarter.
- Company has reduced it's debt by a great margin.
- For FY21, their debt to equity is down to 0.01.
- As from the IPO prospectus about 150cr cost was expected to be incurred out of which 65 cr is done and 86 is still not utilised.
- For margins, if situation keeps changing management will decide how to tackle it.
- As from the IPO prospectus about 150cr cost was expected to be incurred out of which 65 cr is done and 86 is still not utilised.
- For margins, if situation keeps changing management will decide how to tackle it.
- Related to WC days, due to a part of Bromides gone down some delay has been seen in payment receivable which increased their WC days and they are expected to be normal in times to come.
For more discussion on Equity research and OI analysis
Subscribe to our YouTube channel 😃
Link 🖇: youtube.com/c/TheTycoonMin…
Subscribe to our YouTube channel 😃
Link 🖇: youtube.com/c/TheTycoonMin…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
