Fineotex Chemical conducted the conference call for Q3: FY22 yesterday.
"Mgmt focus on foraying the un-tap market and bring on new customer."
Here are the concall highlights
🧵👇
"Mgmt focus on foraying the un-tap market and bring on new customer."
Here are the concall highlights
🧵👇
Business Updates:
• Ambernath facility was operational in Nov.
• Domestic chemical sector is expected to show growth for FY22 due to govt. boost and increase in chemical prices.
• QoQ Volume growth has been 65% on YoY basis.
• Top 10 product contirbutes 20% of revenue
• Ambernath facility was operational in Nov.
• Domestic chemical sector is expected to show growth for FY22 due to govt. boost and increase in chemical prices.
• QoQ Volume growth has been 65% on YoY basis.
• Top 10 product contirbutes 20% of revenue
Industry:
• Textile sector is showing good growth in terms of export and domestic demand as well.
• China market is more in the commodity market, while China focuses less in the small niche market due to higher capacity, hence there is not much competition from China.
• Textile sector is showing good growth in terms of export and domestic demand as well.
• China market is more in the commodity market, while China focuses less in the small niche market due to higher capacity, hence there is not much competition from China.
Ambernath:
• Facility has came up at the right time, as the textile sector witnessed major growth in 2020 and the facility is available just at the cusp of growth.
• This facility has capacity to double the turnover.
• With 8 times tunrover revenue can touch till 350cr.
• Facility has came up at the right time, as the textile sector witnessed major growth in 2020 and the facility is available just at the cusp of growth.
• This facility has capacity to double the turnover.
• With 8 times tunrover revenue can touch till 350cr.
Future Growth:
• Mgmt expect current growth rate to remain achievable in near future.
• Mgmt focuses now on finishing textile & technical textile, where need of chemical is high and growth is huge.
• Asset Turn ballpark in Ambernath facility: 8 times
• Mgmt expect current growth rate to remain achievable in near future.
• Mgmt focuses now on finishing textile & technical textile, where need of chemical is high and growth is huge.
• Asset Turn ballpark in Ambernath facility: 8 times
Margin:
Previously margin was at 18%, because lower utilization, co. focus was getting the certificates for manufacturing, bringing on new customer, expanding product basket.
As base of co. increases margins will be increased. Mgmt expect current margins to be sustainable.
Previously margin was at 18%, because lower utilization, co. focus was getting the certificates for manufacturing, bringing on new customer, expanding product basket.
As base of co. increases margins will be increased. Mgmt expect current margins to be sustainable.
FCL unique spot:
• As mgmt said, as they are manufacturing niche product, big chemical cos are ready to pay price bit higher than actual cost of production with respect to hassle for manufacturing such specialty chemicals.
• As mgmt said, as they are manufacturing niche product, big chemical cos are ready to pay price bit higher than actual cost of production with respect to hassle for manufacturing such specialty chemicals.
Product Price & Raw Material:
• RM is quite diversified and top 10 RM not contribute more than 20-25% of the RM cost.
• Product mix and price increase has result in increase in margin. While certain product being specialty chemical will remain at same margins level.
• RM is quite diversified and top 10 RM not contribute more than 20-25% of the RM cost.
• Product mix and price increase has result in increase in margin. While certain product being specialty chemical will remain at same margins level.
Growth:
• Mgmt claims to have attend all the events and seminars happens all over the world to place its product, which is expanding their global footprint.
• Capacity utilization except for Ambernath is ~70%.
• Mgmt claims to have attend all the events and seminars happens all over the world to place its product, which is expanding their global footprint.
• Capacity utilization except for Ambernath is ~70%.
Competition:
FCL competitors are present in European market such as Huntsman, Archroma, Rudolf. While domestic competitor is Pidilite in some area, Rossari Biotech is near competitor which has 90% similar product.
Product mix helps increasing market share of the company.
FCL competitors are present in European market such as Huntsman, Archroma, Rudolf. While domestic competitor is Pidilite in some area, Rossari Biotech is near competitor which has 90% similar product.
Product mix helps increasing market share of the company.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
