Thread by @ValueEducator

#Camlinfinesciences Q3 2022 Concall Highlights 🧪🧪

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Operational Highlights

1. Revenue grows QoQ grows by 22.4% to ₹380Cr fuelled by robust demand

2. Gross margin improves by 166 bps QoQ to 46.7% despite the inflationary trend in raw material and logistic costs

3. EBITDA margin improves by 719 bps QoQ to 14.5%

4. Sustained performance despite annual maintenance shut down in Diphenol Plant in Europe

Revenue split

1. Shelf life: 31%, Blends: 32%, Performance chemicals: 36% ,Aroma chemical: 1%

Operational Highlights

1. Lockheed martin deal production will start from FY24

2. Substantial breakthrough in feed additive business and focus to expand business in north and central America geographies

3. Entering in geographies of Ecuador for aquatic market

4. 4-5 new products to be introduced in new feed additives business segment with revenue potential of ₹250-300 Cr in 3-4 years

5. Catechol is having limited induce and hydroquinone is facing challenges in demand and expected to continue further

6. Price pass on is partially done in hydroquinone, rest of the pass on will be done in upcoming qtrs

7. For CFS North America, revenue is expected to stay at break even until FY23

8. Evaluating options to manufacture MEHQ from anisole

9. 17-20% EBITDA margins sustainable post vanillin capex

10. Pricing is now done on a quarterly basis. 80% of business is direct consumer driven and rest 20% is distributor driven

CSF regional breakup

1. India- Revenues stood at ₹200Cr with growth of 22% YoY
2. Mexico- Revenues stood at ₹91.3Cr with growth of 29% YoY
3. Europe- Revenues stood at ₹87.4Cr with growth of 26% YoY
4. Brazil- Revenues stood at ₹22.1Cr with growth of 21% YoY

5. North America- Revenues stood at ₹13.4Cr with growth of 68% YoY

Capex

1. CAPEX program on track with Ethyl / Methyl Vanillin
at Dahej SEZ expected to achieve mechanical completion in March 2. 2022 and commercial production in June / July 2022
3. ₹30-40Cr capex for new business segments i.e. feed additives.