Thread by @ValueEducator

Key highlights from #AnupamRasayan Q4FY23 concall.

CMP - ₹1170

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•The company has installed a 17.9 MW solar power plant which will result in ₹14 crores of annual energy savings going forward.

•The company is evaluating inorganic growth opportunities across multiple geographies. The company will go for the acquisition if they find

it to be strategic and value accretive.

•The company has increased its R&D team size by 11, taking the total number of scientists to 88 for FY23. Considering the number of projects the company is getting from various geographies, the company plans to double

the size of their R&D team in FY24.

•The company has added 11 members in their business development team and 3 members in their technical advisory team in Europe, the US, Japan and India. This has helped the company in being close to their customers and strengthening

their relationship with their customers.

•The company has signed 3 new LOIs in the last few months which has taken the total order book of the company from ₹2620 crores to ₹5483 crores.

•The first LOI is with a Japanese company for ₹984 crores for a period of 6 years. The molecule under this agreement will be an agro active or technical which will be based on fluorination chemistry.

•The company as per their press release on 13 April 2023 has signed a 2nd LOI worth $182 million or ₹1500 crores for 7 years with one of the leading Japanese MNC. The company will manufacture 3 high value specialty chemicals which will be used as advanced intermediates for

highly specialized polymers and liquid crystals. This LOI is in line with the company’s strategy of expansion in the Fluoropolymer and Electronic segments, manufacturing high value molecules and moving up the value chain.

•The company as per their press release on 25 April 2023 has signed a LOI worth $46 million or ₹380 crores for 5 years with one of the leading American MNC. The company will manufacture and supply an advanced intermediate which is a niche fluorinated molecule.

This molecule would be used as a building block for manufacturing high-end engineering fluids and also in APIs. This LOI is in line with the company’s plan of growing their fluorination business.

•The 3 new LOIs signed by the company are based on fluorination chemistry and

these are with new customers. The company plans to commercialize at least 2 molecules in these new LOIs by FY24 and the balance by FY25. The peak revenues from these new LOIs is expected to kick-in by FY26 and onwards. The company as of now does not plan to do any new capex

to support the newly signed LOIs

•The LOIs and contracts which have been signed by the company overall in FY22- FY23 have a combination of both annual pricing and semi-annual pricing. The company however, has managed to sign the majority of these LOIs and contracts based

on the semi-annual pricing.

•The fluorine business of the company right now is at 15%. The company expects the contribution from the fluorine business to increase to 20% in FY24 and reach to 30% by FY27.

•The company is at an advanced stage of discussion with its customers to manufacture high value niche molecules which will have applications in pharmaceuticals, electronic chemicals and other areas. These molecules will be manufactured for the first time in India.

•The capex incurred capex of around ₹177 crore for FY23 and has a plan to incur a capex of ₹350 - 400 crore for FY24. This capex is part of their total capex plan of ₹670 crores which will take place over FY23 - FY25.

•The company has ₹551 crores of cash on its books and expects to generate strong CFO in the coming quarters. This will be sufficient to fund the ongoing capacity expansion projects as guided by the company management.

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