GHCL conducted their concall for Q2 FY 22
Here are the conference call highlights ππ§΅
Here are the conference call highlights ππ§΅
Business Updates:
β’ Soda Ash market remain tight due to supply chain disruption from China.
β’ Sentiments in Textile remain strong due to China+ policy.
β’ Arrival of fresh cotton has started but at increasing prices. This will impact the margin, as prices are difficult to pass
β’ Soda Ash market remain tight due to supply chain disruption from China.
β’ Sentiments in Textile remain strong due to China+ policy.
β’ Arrival of fresh cotton has started but at increasing prices. This will impact the margin, as prices are difficult to pass
Inoragnic Chemical:
β’ Revenue for Q2 was 572 cr, with EBIDT of 106cr.
β’ Margin dropped to 19% from 25%, due to significant increase in energy cost & raw material prices.
β’ Co. has increase the price which will be seen in the coming quarter.
β’ Revenue for Q2 was 572 cr, with EBIDT of 106cr.
β’ Margin dropped to 19% from 25%, due to significant increase in energy cost & raw material prices.
β’ Co. has increase the price which will be seen in the coming quarter.
Soda Ash:
β’ Significant price increase have happened
β’ Improvement in per ton margins will be coming up from Q4 (currently there are some contracts which are on annual basis)
β’ In China there are lot of plant (~1.3 million tons) has got stopped. China will become net imported
β’ Significant price increase have happened
β’ Improvement in per ton margins will be coming up from Q4 (currently there are some contracts which are on annual basis)
β’ In China there are lot of plant (~1.3 million tons) has got stopped. China will become net imported
Market Share:
β’ Around 25% market share in India.
β’ Import is also ~23% - 25%. The balance 50% goes to the competition.
β’ Around 25% market share in India.
β’ Import is also ~23% - 25%. The balance 50% goes to the competition.
Textile:
β’ Revenue: 415cr, with EBIDTA of 96cr.
β’ EBITDA margin for Q2 is 23% vs 15% last year.
β’ Robust performance across entire home textile and spinning business.
β’ Volume may go up but at lower margins.
β’ Cotton prices have been going up in the last 6-8, months.
β’ Revenue: 415cr, with EBIDTA of 96cr.
β’ EBITDA margin for Q2 is 23% vs 15% last year.
β’ Robust performance across entire home textile and spinning business.
β’ Volume may go up but at lower margins.
β’ Cotton prices have been going up in the last 6-8, months.
Margin in textile:
β’ Some of the mills, GHCL were at old inventory & got the benefit.
β’ Now inventory is consumed & RM will go up. whereas the benefit of price has already been factored in Q2.
β’ While buyers will not be able to take the load of the entire increase in price.
β’ Some of the mills, GHCL were at old inventory & got the benefit.
β’ Now inventory is consumed & RM will go up. whereas the benefit of price has already been factored in Q2.
β’ While buyers will not be able to take the load of the entire increase in price.
Consumer:
β’ Glass industry is doing very well.
β’ Detergent industry was slightly on the lower side, due to rainy season.
β’ 7 lakhs tons of soda ash is consumed in solar glass panel. Over the next 2 years there is 1.4 million
tons of the extra demand will be required.
β’ Glass industry is doing very well.
β’ Detergent industry was slightly on the lower side, due to rainy season.
β’ 7 lakhs tons of soda ash is consumed in solar glass panel. Over the next 2 years there is 1.4 million
tons of the extra demand will be required.
De-merger of textile:
β’ Admission of petition has been passed by NCLT. Next date of hearing is on 23 Nov.
CAPEX on Soda Bicarboante:
β’ Got the NOC from the Government.
β’ Applied for the govt. land. Have also applied TOR and got the approval TOR.
β’ Expected completion: FY23
β’ Admission of petition has been passed by NCLT. Next date of hearing is on 23 Nov.
CAPEX on Soda Bicarboante:
β’ Got the NOC from the Government.
β’ Applied for the govt. land. Have also applied TOR and got the approval TOR.
β’ Expected completion: FY23
Other:
β’ Cash profit of 300 crores.
β’ Net debt stood at 697 crore.
β’ Cost of borrowing is 8-8.5% but, the new loans are getting at around 6.5%.
β’ Capital outlay will be 400-425cr for FY22 &
~200 Cr for FY23.
β’ Cash profit of 300 crores.
β’ Net debt stood at 697 crore.
β’ Cost of borrowing is 8-8.5% but, the new loans are getting at around 6.5%.
β’ Capital outlay will be 400-425cr for FY22 &
~200 Cr for FY23.
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