Thread by @TYMFinance

Apcotex ltd conducted their conference call today at 2 pm.

“Increase exports and product reach leading to double top line in times to come.”

Here are the key takeaways…

Business update

- One of the leading producer of Synthetic rubber and Synthetic Latex in India has delivered strong results during the period.

- Company is spreading itself in Gujarat ,Madhya Pradesh ,Goa and Maharashtra.

- The company looks forward to have more global approach for rubber business. but for latex business domestic is good business for them.

- The exports are expected to be around 200 crore additional for them.

- The apco build is a small part of the business and in next 3-5 years it is expected to be a substantial part of business.

- Paper and paper alliance contribute 20% of business

- Construction business 20-25%
Of the business.

- There is no concentration towards any area.

- For automotive which is 20-25% they has a fear of its rough space and expects it to cool down sooner.

- For agri sector, the quarter was good and is expected to stay the same for them in upcoming periods as well.

- Company doesn’t have exact number of split for rubber and latex which is approx to 55-45.

- On cost front, the company has increased a lot of is staff size to cater the demand and will be likely to maintain it for the better use.

- The company is storing its key import material to maintain its power in import deals.

- As industries are growing at good scale, many of its players are increasing their scale, to compete with the best company is ready to take all measures.

- Linking to it they aim to get the most market share they could in next 4 Years.

Financials

- The company has reached historical Highs this quarter.

- The revenue has grown by 52% on YoY basis.

- The quarterly volumes also grew with full benefits of all debottlenecking projects from November 2021.

- On exports, it contributed 21% of overall sales in this quarter.

- With it The EBITDA grew by 13.5% and PAT by 43%.

- For margins, it’s Margins haven’t dropped with cost increases because they could easily pass it to customers.

- Along that, The rupees per ton has increased with increase of the volume.

- The company is working at full capacity to take all usage and have improved their products as well.

- The company is focused to increase its ROC levels to new high.

- The company will face a volume issue for the time being but with other factors positive they are positive to sustain and grow further.

- The company keeps on booking time to time investment as per the need.

- The company keeps a track on its logistics part as well.

- For them sometimes it’s cheaper to import things from Dubai and expensive to order from Delhi and Mumbai.

Capex and Innovation

- They have 2 major facilities 1 in Maharashtra and another in Gujarat.

- The Taloja Facility creates 55000 MTPA of synthetic Latex and 7000 MTPA of high styrene rubber.

- Their Valia Facility has 21000 MTPA of nitrile rubber and allied products.

- On new projects front, the projects are scheduled and expected to be completed around Q2-3 for FY 22-23.

- The company has taken up little debt to take new projects to a new level.

- The capex are around 220-230 crore and they are on course.

- Company is working in on new products and services which they generally import.

- This backward integration will help a lot.

- New capex cost around 180-190 crore. And expect 500 crore of revenues.

Next to that it will have new capex of 100 crore and generate 300-400 crore revenue.