Thread by @ValueEducator

#Navinfluorine Q3 2022 Concall Highlights 🧪👨‍🔬

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Operational Highlights

1. Operating revenues stood at ₹367 Cr registering growth of 24% YoY

2. EBITDA grew by 21% YoY to ₹98 Cr with margins at 27%

3. 58% of revenue contribution from high value business and rest 42% from legacy business

4. Growth momentum of 10% YoY in high value business and 50% in legacy businesses

5. As per customers, the overall demand was slow due to inventory pile up, with revival in demand the existing inventory is now consumed and order for new inventory will soon be in pipeline from H2

6. Inorganic and refrigerant gas business were able to pass on the incremental prices but the cost were absorbed in specialty segment
R22 prices will further move up and might have impact on next quarter volumes

7. Growth in domestic region will be driven from inorganic business

8. Not to be an API player but considering it as an option to service the customers

9. Short - mid term drivers will be more in agrochemicals industry

10. Mid-long term targets focus on pharma business driven by CRAMS opportunities
Working on new opportunities in inorganic business

Segmental review

Specialty Chemicals

1. Specialty chemicals contributed 41% of revenues in Q3FY22 with 24% growth YoY

2. 51% of revenues from international business in 9MFY22

3. One dedicated plant for specialty chemical molecule with capacity utilisation at 75%

4. Extremely strong pipeline in specialty business mostly coming from agrochemicals and non-pharma non-agro

CRAMS

1. 16.3% revenue contribution in Q3FY22 with shrink in growth of (-15%) YoY

2. All the revenues for CRAMS were from international business in the period of 9MFY22

3. Shift of some of the orders from Q3 to Q4FY22

4. Debottlenecking of CGMP3 approved on the back of robust opportunity pipeline

Inorganic Fluorides

1. 22% of revenue contribution in Q3FY22 with 47% growth YoY

2. 91% of of inorganic fluid sales was in domestic markets and rest 9% in international markets for the period of 9MFY22

3. Increase in realisations helped drive growth

Good traction seen from end user segments especially in India

Refrigerant Business

1. 20% of revenue contribution in Q3FY22 with 54% growth YoY

2. 61% of of inorganic fluid sales was in domestic markets and rest 39% in international markets for the period of 9MFY22

3. Exports sales impacted due to higher logistics cost

4. Sales into Non-emissive applications continues to look robust

5. The growth in refrigerant gas will not come from R22, but other products because most of the OEMs are reducing the use of R22

Capex

1. Debottlenecking will be completed by Nov- Dec 2022 and will
will generate 65-70$ million in revenues

2. Evaluating options to setup new hydrochloric acid plant in Dahej