Anupam Rasayan India Ltd conducted their conference call today at 4:00 pm.
" Continue to focus on cost efficiency and improving productivity."
Here are the key takeaways ππ...
" Continue to focus on cost efficiency and improving productivity."
Here are the key takeaways ππ...
Business Report
- This 37 year track record holder in custom synthesis has strong growth during this period.
- With strong client base of about 18 MNC and other 65 clients they have strong demand hold.
- At present the company has 6 manufacturing facilities.
- This 37 year track record holder in custom synthesis has strong growth during this period.
- With strong client base of about 18 MNC and other 65 clients they have strong demand hold.
- At present the company has 6 manufacturing facilities.
- With vast presence around globe they are able to grow business effectively During this period only India became the major contributor of business.
- There was decline in business from Europe , Singapore and Us regions.
- There was decline in business from Europe , Singapore and Us regions.
- Business undergoes into long term contracts with its clients which validates for 2 to 5 years.
- Company has done a good work of reducing their top client contribution towards revenue.
- Company has done work in solar and wind power which will add good value to revenue.
- Company has done a good work of reducing their top client contribution towards revenue.
- Company has done work in solar and wind power which will add good value to revenue.
- Company is having a proper waste management system to avoid any hinderance and issued in people's life.
- With strong global demand in CRAMS industry Company is bullish for its future.
- The Top 10 customers contribute around 81%.
- With strong global demand in CRAMS industry Company is bullish for its future.
- The Top 10 customers contribute around 81%.
Business verticals
- Company has divided itself into 2 vertices
1. Life sciences related Speciality Chemicals and
2. Other specialist Chemcials.
- Life sciences includes crop protection, personal care and pharma business and in total they contribute 90% of business revenue.
- Company has divided itself into 2 vertices
1. Life sciences related Speciality Chemicals and
2. Other specialist Chemcials.
- Life sciences includes crop protection, personal care and pharma business and in total they contribute 90% of business revenue.
- Rest is contributed by the other verticle.
- Their presence in niche molecules and expertise in complex molecules have helped them to gain good business.
- Company has created a strong flow chemical technology for itself to enhance its efficiency.
- Their presence in niche molecules and expertise in complex molecules have helped them to gain good business.
- Company has created a strong flow chemical technology for itself to enhance its efficiency.
- Another RnD focus is been towards the photo chemistry method to conduct research in new active compounds.
- The new products has contributed 80% of the revenues for this year. This 10 product's has the ability to grow much further.
- The new products has contributed 80% of the revenues for this year. This 10 product's has the ability to grow much further.
- With total 43 products in pocket and agreements with customer 60% to 80% revenue is expected every period.
- Company is working on 16 new molecules for future.
- New electronic Chemicals are expected from Company with their talks with tech companies.
- Company is working on 16 new molecules for future.
- New electronic Chemicals are expected from Company with their talks with tech companies.
- As being first and second supplier to customers they were not able to do negotiate price but now they can, so with the minimum inventory they need to maintain they can charge what is good for them.
Financials And Investments
- Company has delivered strong growth in revenue of about 73% on YoY basis.
- EBITDA level grew by approx 60% along with a huge jump in PAT levels.
- Company has been able to reduce its debt significantly through its Ipo proceeds.
- Company has delivered strong growth in revenue of about 73% on YoY basis.
- EBITDA level grew by approx 60% along with a huge jump in PAT levels.
- Company has been able to reduce its debt significantly through its Ipo proceeds.
- There has been an increase in their fixed asset turnover ratio compared to previous year.
- At present their net debt is around 912 million rupees, bringing net debt to equity around 0.06.
- At present their net debt is around 912 million rupees, bringing net debt to equity around 0.06.
- With it's Ipo proceeds, it repaid 4705 mn of total debt and rest amount were been utilised for expansion and Branding which might lead to improved cash flows.
- Company requires at least 6 months for plant modification and will need at least 18 months to complete a plant.
- Company requires at least 6 months for plant modification and will need at least 18 months to complete a plant.
- Keeping covid situation aside.
- Their current capacity utilisation is around an average of about 75% which is expected to reach 90% in upcoming years.
- Capex has done around 140cr for last year.
- Their current capacity utilisation is around an average of about 75% which is expected to reach 90% in upcoming years.
- Capex has done around 140cr for last year.
- Company had higher working capital due to higher inventory in previous year but proper dealing is done and in coming years many this process will be smooth and won't hamper business much.
- For now the company has good capacity to meet demand till FY23.
- For now the company has good capacity to meet demand till FY23.
- For Fy24, Capex plans will be decided later, till that small capex will be done in range of 20 to 50crs.
- In Previous year a part of interest cost was capitalised and now all plants are functioning so interest is shown directly due to which it looks higher, Nothing new.
- In Previous year a part of interest cost was capitalised and now all plants are functioning so interest is shown directly due to which it looks higher, Nothing new.
- Company is thinking to shift to a new business model to transfer cost as quick as possible to customers and enter into longer fixed contracts as possible.
-Their 1100 cr contract will start from last q of fy23 and expected to last for 5 years. A bit of Capex will also be done.
-Their 1100 cr contract will start from last q of fy23 and expected to last for 5 years. A bit of Capex will also be done.
- All Previous plants are expected to be used optimally and along that small capex of 40cr will be done.
- This additional cost will be covered from internal accrual. The company with lower cost and high margin generation can boost more expansive areas for the company.
- This additional cost will be covered from internal accrual. The company with lower cost and high margin generation can boost more expansive areas for the company.
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