Thread by @AlphSt_India

Jubilant Ingrevia Ltd Q4 FY22 Earnings Concall Insights

#JUBLINGREA #JUBLINGREAQ4 #JubilantIngrevia #concall #concalls #insights #results #stocks #TrendingStocks #earnings #stockmarketindia #StockToWatch
🧵

JUBLINGREA said that its estimated cash outflow of FY23 will be around INR550 crore and for FY24 and FY25 will be INR650 crore and INR600 crore respectively, which are intended to be funded through internal accrual along with reduction in debt.

Q&A Insights: Rahul Veera of @AbakkusInvest asked about the breakup of INR1,250 crore incremental investment. Shyam Bhartia Chairman replied that specialty chemical is INR750 crore, nutrition and health solution is INR200 crore, and chemical intermediates is INR300 crores.

Q&A Insights: Siddharth Gadekar with @EquirusGroup asked about the reason for sharp jump in other expenses during 4Q22. Shyam Bhartia Chairman said that there was one re-class in other expenses. Other than that, the increase was due to higher freight expenses and some writeoffs.

Q&A Insights: Siddharth Gadekar with @EquirusGroup also enquired that given acetic acid prices are down vs. 4Q22 avg., if the company would see more inventory loss in 1Q23. Shyam Bhartia Chairman replied that there has not been major changes in acetic acid prices.

Q&A Insights: Rohan Gupta of @EdelweissFin asked about the optimism in capex of another INR1,200 crore. Shyam Chairman said that it is driven by customer demand; existing customers asking to develop new products, value addition in existing product and investment in new platforms.

Q&A Insights: Rohan Gupta of @EdelweissFin asked how much investment has gone in cash outflow in FY22. Shyam Chairman said that FY22 cash outflow is close to INR243 crore. And since most of the capex have been approved during FY22, cash outflow will mainly start happening in FY23

Q&A Insights: Rohan Gupta of @EdelweissFin asked that going forward the percentage margins, which was upwards of 20% can be maintained. Shyam Bhartia Chairman said once the company brings new capital investments with value-added products, it expects margins to be improving.

Q&A Insights: Dhaval Shah of Svan Investments asked about the INR9,000 crore rev. target, if it’s achievable by FY27. Prakash Bisht CFO said that it can be achieved as the investments JUBLINGREA is making will be ready by FY25 and it only takes 2 years to ramp up the facilities.

Q&A Insights: Bajrang Bafna with Sunidhi Securities asked if the company is thinking on securing long term supply of ethanol. Shyam Bhartia Chairman clarified that it makes business sense for it to sell better quality of ethanol it makes at higher margins and consume from import.

To read further on the detailed analysis of #JUBLINGREA #Q4 concall Q&A …

alphastreet.com/india/jubilant…