Thread by @ValueEducator

Jubilant Ingrevia Q3 2022 Concall Highlights 🧪👨‍🔬

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Operational Highlights

1. Revenue grew by 44% on YoY basis, driven by growth across product segments to ₹1,286 cr in Q3FY22 from ₹893 cr in Q3FY21

2. Revenue from Pharma, Nutrition and Agro end use increased significantly.

3. Most of the input cost is passed on resulting in better realisations

4. Acetic acid prices were high due to china and supply constraints

The change in duty for acetic anhydride and methanol will benefit more to consumers than the manufacturers

Business strategy

1. Focus on debottlenecking on existing products

2. 34 new products under pipeline and expected to launched in coming years

3. 55% of business is from the life science segment and 45% from speciality.

Post capex as the revenue mix shifts more to speciality, margins expansion will be visible

4. If raw material prices stay high and continue at these levels, the revenue will be doubled earlier than FY26

Segmental Overview

Speciality chemicals

1. Revenues stood at ₹349 Cr contributing 27% to revenues with 21.8% EBITDA margins

2. Speciality Chemicals revenue grew by 22% YoY driven by volume growth across products and passing-on of higher input costs.

3. Pharma Sales share to total revenue grew to 52% from 47% earlier

Health and Nutritions

1. Revenues stood at ₹216 Cr contributing 16% to revenues with 24.4% EBITDA margins

2. Nutrition and Health Solutions revenue grew by 37% YoY driven by higher volumes and improved price realisation

3. Sales in vitamin B3 improved due to high realisations and volume growth

4. Revenue share from EU increased to 36% as against 20% last year and share from North America increased to 21% from 11% earlier

Life sciences

1. Revenues stood at ₹722 Cr contributing 56% to revenues with 13.9% EBITDA margins

2. Life Sciences Chemical revenue grew by 60% YoY, driven by higher prices on account of favourable market conditions

3. High demand in european as well as domestic regions

4. Life Sciences Chemical revenue growth was driven by higher prices of Ethyl Acetate and Acetic Anhydride

Capex

1. Food Grade Acetic Acid. (expected by April to June 2022)

2. CDMO GMP Facility at Bharuch. (expected by July to Sep 2022)

3. Three Multi-Purpose plants of Speciality Chemicals. (expected by July to Sep 2022)

4. Acetic Anhydride Plant. (expected by Jan to March 2023)

5. Agro Actives Phase-1. (expected by Jan to March 2023).

6. Diketene plant is commissioned and demand is high in India as many consumers are importing. Customers are waiting for commissioning of the plant.

7. Capex is on course and expect to double the revenues in FY26 from FY20 mark

8. Committed investment worth Rs. 450 Crore for key growth capex is progressing well. At peak capacity these investments are expected to generate additional annual revenue of ₹ 900-₹1,000 Crore at prevailing prices

9. Capex cash outflow for the year is expected to be in the range of ₹300 crore.

10. Gross Debt reduction by ₹263 Crore and Net Debt reduction by ₹201 Crore compared to 31st March 2021