Kiri Industries Ltd conducted there conference call today at 2:00 PM
Here are the key concall highlights.π
Here are the key concall highlights.π
Business Updates:
β’ Standalone Revenue increased 30%.
β’ Operating Expense is constantly look, & was down 24% QoQ o last year.
β’ Gross margin has been back to pre-covid level.
β’ Co. has been debt free, hence interest cost decreased.
β’ Standalone Revenue increased 30%.
β’ Operating Expense is constantly look, & was down 24% QoQ o last year.
β’ Gross margin has been back to pre-covid level.
β’ Co. has been debt free, hence interest cost decreased.
Dystar:
β’ Kiri has been awarded 481.6 Mil$ from Dystar.
β’ There are more 30 days for the appeal, and there are chances for appeal from Dystar as well.
β’ This may take around 4-8 months to get the fund. Mgmt expect Q1:FY 22.
β’ Tax is expected to be around 10% LTCG.
β’ Kiri has been awarded 481.6 Mil$ from Dystar.
β’ There are more 30 days for the appeal, and there are chances for appeal from Dystar as well.
β’ This may take around 4-8 months to get the fund. Mgmt expect Q1:FY 22.
β’ Tax is expected to be around 10% LTCG.
Usage of Funds (Dystar):
β’ Project evaluation process has been started.
β’ This investment would be in non-dyes and intermediates segment.
β’ Company expects 2-3 year from the this expansion to attain significant result.
β’ Project evaluation process has been started.
β’ This investment would be in non-dyes and intermediates segment.
β’ Company expects 2-3 year from the this expansion to attain significant result.
Specialty Segment:
β’ Company is planning for investment in technology, adding mgmt experts for entering Specialty segment.
β’ Expansion would be also be around in place where company can have oligopoly market.
β’ Company is planning for investment in technology, adding mgmt experts for entering Specialty segment.
β’ Expansion would be also be around in place where company can have oligopoly market.
Specialty Intermediate:
β’ Specialty Intermediate plan was major growth driver in this quarter.
β’ Phase 1 expansion (in FY21) was of 57 cr &
β’ Contribution of Phase 1 was 300 cr (including internal consumption).
β’ EBIDTA margin expected to increase 2-3%.
β’ Specialty Intermediate plan was major growth driver in this quarter.
β’ Phase 1 expansion (in FY21) was of 57 cr &
β’ Contribution of Phase 1 was 300 cr (including internal consumption).
β’ EBIDTA margin expected to increase 2-3%.
β’ Phase 2 is stopped currently, and is expected to be completed by the end of this year.. Land & Building already done.
β’ Phase 2 also expected to contribute around 300cr revenue.
β’ Phase 2 also expected to contribute around 300cr revenue.
Industry Outlook:
β’ Domestic Textile consumption was down, and export has been hampered.
β’ Reactive Dyes export sales of India reduced from 17,000 MTPA to 12,000 MTPA this year.
β’ Domestic Textile consumption was down, and export has been hampered.
β’ Reactive Dyes export sales of India reduced from 17,000 MTPA to 12,000 MTPA this year.
Question from @tycoonmindset05 on Textile Industry outlook:
β’ Textile and Yarn industry is perfectly correlated with dyes industry.
β’ Hence current growth in textile segment has improved the gross margins.
β’ Intermediates has yielded higher profit than that of dyes end product
β’ Textile and Yarn industry is perfectly correlated with dyes industry.
β’ Hence current growth in textile segment has improved the gross margins.
β’ Intermediates has yielded higher profit than that of dyes end product
β’ China's 1+ Policy and decrease in Chinese manufacturing has been driving sales to Indian companies.
β’ Vinyl Sulphone & H-Acid price has been decreased this quarter, due to decline in price in China.
β’ China's competition still persist in the industry.
β’ Vinyl Sulphone & H-Acid price has been decreased this quarter, due to decline in price in China.
β’ China's competition still persist in the industry.
Segment:
β’ Dye Intermediates generates higher revenue and there are few players which are backward integrated.
β’ For export market top 5 players contributes around 60-70% of revenue. (Kiri, Bodal, Colertex, and other chemical).
β’ Dye Intermediates generates higher revenue and there are few players which are backward integrated.
β’ For export market top 5 players contributes around 60-70% of revenue. (Kiri, Bodal, Colertex, and other chemical).
Segmental revenue:
β’ Dyes- 12281
β’ Intermediates- 14781
β’ Basic - 72708 Tones
Total- ~100K Tonnes
Revenue share in image.
β’ Dyes- 12281
β’ Intermediates- 14781
β’ Basic - 72708 Tones
Total- ~100K Tonnes
Revenue share in image.
MEIS & PLI:
β’ All cos are waiting for change in MEIS scheme and there have been letter sent to the government.
β’ Cos are waiting for the update in scheme and once it is announce, incentives would be claimed by co.
β’ For PLI, Kiri has been looking in API segment.
β’ All cos are waiting for change in MEIS scheme and there have been letter sent to the government.
β’ Cos are waiting for the update in scheme and once it is announce, incentives would be claimed by co.
β’ For PLI, Kiri has been looking in API segment.
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