Kiri Industries conducted the concall today at 2:00 pm for Q1 FY22.
"Mgmt expect 30% sales growth in next quarter, with year end turnover to be around 1000cr (suppressed due to unexpected quarter)"
Here are the Conference call highlights ☎️🧵
"Mgmt expect 30% sales growth in next quarter, with year end turnover to be around 1000cr (suppressed due to unexpected quarter)"
Here are the Conference call highlights ☎️🧵
Business Update:
• Impacted business due to covid
• Q2 FY has seen sharp increase in basic chemicals prices
• Passover of increase cost of sharp rise in raw material was not possible, resulting in decline margin
• While increase in legal cost of Dystar case impacted business
• Impacted business due to covid
• Q2 FY has seen sharp increase in basic chemicals prices
• Passover of increase cost of sharp rise in raw material was not possible, resulting in decline margin
• While increase in legal cost of Dystar case impacted business
Industry Updates:
Domestic market was on standstill, especially in month of April and May. While currently market is picking up.
However domestic sales remain sluggish, resulted in impact in the textile business.
Domestic market was on standstill, especially in month of April and May. While currently market is picking up.
However domestic sales remain sluggish, resulted in impact in the textile business.
Export market:
• Reactive Dyes: In this quarter Turkey & Bangladesh (leading market of Reactive Dyes) both were under lockdown which impacted the export market.
• China market is slowing up due to restrictions of usage by Chinese government.
• Reactive Dyes: In this quarter Turkey & Bangladesh (leading market of Reactive Dyes) both were under lockdown which impacted the export market.
• China market is slowing up due to restrictions of usage by Chinese government.
China:
• India lags China because of 2 reason. India imports Aniline from China with anti-dumping duties. As India's production of Aniline is just 35% of demand.
• While in order to sell end product, India, has to reach the price of China, which almost become difficult.
• India lags China because of 2 reason. India imports Aniline from China with anti-dumping duties. As India's production of Aniline is just 35% of demand.
• While in order to sell end product, India, has to reach the price of China, which almost become difficult.
Volume and Realization data:
• Reactive Dyes: Volume (2111 Tones)- Volume degrowth of 39% QoQ.
• Dyes Intermediates- Volume (3644 Tonnes)- Volume degrowth of 35%
Realization
• Vinyl sulphine- 259Rs
• H-acid- 357 Rs
• Reactive Dyes: Volume (2111 Tones)- Volume degrowth of 39% QoQ.
• Dyes Intermediates- Volume (3644 Tonnes)- Volume degrowth of 35%
Realization
• Vinyl sulphine- 259Rs
• H-acid- 357 Rs
Raw Material
• Aniline: Last year price was around 55-60Rs, which was peaked to 210Rs this quarter. Currently price is around 140-150Rs.
• Benzene touched 1100 Tonne, which peaked the raw material price.
• Transportation cost remain robustly high this quarter.
• Aniline: Last year price was around 55-60Rs, which was peaked to 210Rs this quarter. Currently price is around 140-150Rs.
• Benzene touched 1100 Tonne, which peaked the raw material price.
• Transportation cost remain robustly high this quarter.
Future Projects:
• Co. is strictly thinking on backward integration. esp Aniline & other supplements products.
• Post the funds from Dystar, co. will think of expanding into new project, with contribution of Debt & Equity.
• Co. will also hire experts from peer cos.
• Co. is strictly thinking on backward integration. esp Aniline & other supplements products.
• Post the funds from Dystar, co. will think of expanding into new project, with contribution of Debt & Equity.
• Co. will also hire experts from peer cos.
Legal Expense:
• If the legal expense didn't appeared this quarter EBIDTA margin would be 4-6%. Hence legal expense would be around north of 12 cr.
• For fund approval co. has to incur these expenses.
• If the legal expense didn't appeared this quarter EBIDTA margin would be 4-6%. Hence legal expense would be around north of 12 cr.
• For fund approval co. has to incur these expenses.
Dystar:
• Post cut off date of Dystar, Kiri is not liable for any profit sharing of Dystar.
• In next case meeting co. expect final hearing of Singapore to be concluded, where final date of payment can be expected. This is expected to be done in Dec 22.
• Post cut off date of Dystar, Kiri is not liable for any profit sharing of Dystar.
• In next case meeting co. expect final hearing of Singapore to be concluded, where final date of payment can be expected. This is expected to be done in Dec 22.
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