Thread by @ValueEducator

#Rossaribiotech Q3 2022 Concall Highlights

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Operational Highlights

1. Revenues for the quarter stood at ₹428.4Cr, up 104% from same period previous year

2. EBITDA stood at ₹46.7 Cr translating to EBITDA margins of 10.9%

3. PAT stood at ₹22.5 Cr with PAT margins of 5.3%

4. Undertaking price hikes wherever possible to offset these raw material pressures.

5. This is the first full quarter of consolidation of recent acquisitions of Unitop and Tristar in Rossari’s performance. Both these companies delivered growth during the period, which assisted overall performance.

6. Latest acquisition of Romakk Chemicals has now been consolidated with effect from December 01, 2021. The timely integration of Romakk will further strengthen presence in the textile and Home and Personal Care segment

7. Revenue contribution from the HPPC segment stood at 71%, followed by TS

8. Actively undertaking cross selling opportunities and exploring new geographies

9. Acrylic acid prices last month was 2000$/ton and suddenly this month it has gone up to 2700$/ton

Volatility in raw material prices is expected to continue for next 2 quarters

10. Utilization at dahej stood at 50-60%.

11. For ₹2500 Cr revenue generation, no more additional capex is required, only maintenance capex to continue

12. Q1 is expected an improvement on supply and prices side

13. Volumes are lower on QoQ basis but higher on YoY basis. However major growth is on behalf of hike in prices

14. Antiviral and antimicrobial for textile are more consumer based products catering to large manufactures like Marks&Spencer and others. Towel manufacturers are one of the largest consumer of

these products, however these additives makes up only 5% of composition of final product

Segmental split
HPPC- revenue for this segment stood at ₹305.24 Cr contributing 71% to total revenues. The segment grew 155.2% YoY and 29.3% on a QoQ basis.

The business reported healthy sales supported by stable traction in FMCG, anti-viral & personal hygiene product portfolio volumes

TSC- Revenues for the segment stood at ₹102.8 Cr translation 24% contribution to revenues.

The segment grew 31.5% YoY, however it contracted by (-6.3%) on a QoQ basis. Growth driven by a pickup in demand in domestic and export markets

AHN- Revenues for the segment stood at ₹20.38Cr i.e. contributing 5% to total revenues with growth of 67% YoY. however the segment contracted by (-47.3%) on a QoQ basis. Growth driven by a pickup in demand in domestic and export markets

Product introductions

Introduced new technology i.e. polyester resin
Introduced new green products i,e, green urea and green silicate.
Substitutes for bleach
Introduced lycra protector, water repellents, acrylic polymers etc