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#JubilantIngrevia Q2 23 Concall Highlights 🧪🧪

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1. Speciality business revenues increased 63% while margins got impacted due to unavailability of contracted coal supply. Exploring alternative solutions for coal

2. Flu situation in Europe and the US is normalizing but B3 demand is suppressed and there is excess inventory across the value chain.

3. Demand challenges for vitamin B3 are short term.

4. Continue to increase market share for Vitamin B4 in animal nutrition

5. In chemical intermediates business segment, Jubilant Ingrevia maintains its position of leadership in acetic anhydride in international market

6. Revenue impact in Chemical intermediates is due to lower prices of feedstock and that’s why lower prices of final products [ethyl acetate and acetic anhydride ]

7. CDMO pipeline is healthy and progressing positively.

New GMP and non GMP facilities expected to be ready in Q3 23 will help to capture the demand for CDMO business

8. Getting good response for speciality chemical business segment due to china + 1

9. Acetic anhydride plant at bharuch is under construction and expected to come online in Q4 23

10. Expecting nutrition and speciality chemicals contribution to 65% till FY27 from 46% in FY 22 and it improve the margins

11. Acetic acid prices at Q1 23 was at $745 while at Q2 23 end it was at $620

12. Q1 + Q2 impact due to coal is 160 to 180 cr

13. In Q1 23 fuel and inventory losses of acetic acid losses were 40 cr and 55-60 cr in Q2 23

14. Contracted coal is for 5 years at fixed price

15. Plant is successful on cost and quality while Demand for diketene from UPL is low due to agrochemical demand got impacted. It will normalize in Q4. Right now capacity utilization is 50%.

Till Q4 expected to reach 80-100% capacity utilization. Exports of diketene will take some time after approvals. Next year phase 2 of diketene will come online with 2000 MT capacity with 4 products.

16. Growth in speciality chemicals is due to pyridine derivatives. Jubilant ingrevia is introducing new derivatives and shifts from china also adding to the growth. Not achieved 60-70% market share in each of the derivatives (60-70% share only in some derivatives).

17. Capacity utilization for acetic anhydride is 70-80% expecting better capacity utilization

18. China is dumping ethyl acetate in Europe that’s why Jubilant ingrevia volume got affected but now situation is improving.

Another reason for demand slowdown in ethyl acetate due to slowdown of packaging industry in India. 60-70% capacity utilization for ethyl acetate. Capacities are fungible. Launched propionic anhydride

19. Jubilant ingrevia is major importer of ethanol from brazil and US, Domestic procurement is very small which depends on spot availability situation. Methanol and acetic acid is procured internationally.

20. In the CDMO business segment Previously 5 molecules were in pharma and 2 in agro. Now jubilant ingrevia have 7 in pharma and 3 in agro.

10-12 products under pipeline which are under development with customers. Expected to utilize new capacities soon once they will be come online in next qtr

21. CDMO business segment is close to double digit of specialty chemicals (50 cr qtrly) It is expected to improve with new products

22. If the cost is 100 rs, power and fuel cost used to be at 10 to 15%, right now it is 15%-18%.