256.45 -5.10 (-1.95%)
26,406 NSE+BSE Volume
NSE Dec 06, 2022 12:09 PM
Commodity chemicals firmGulshan Polyols announced Q2FY23 results:
The management of the company said, “We are happy to share our financial and business performance for Q2 and H1FY23, revenue from operations remained relatively stable at Rs 2,763.8 mn in Q2FY23 from Rs 2,772.8 mn in Q2FY22, owing to peak utilisation of our capacities. However, the company continued to witness robust demand for its product across all the three segments.
Our products continue to maintain their dominant market share. However, the commodity headwinds prevalent in Q2 FY23 in the form of higher raw material costs (primarily cost of rice and maize), up by approximately 20-35% and elevated coal prices, which almost doubled and hovered around their all-time high during September 2022, have put pressure on our operating margins. As we move forward, we are observing softening in the price of our key raw materials owing to increasing grain reserves as asserted by the government, ban on export of damaged rice and setting in of the new kharif crop. Further, the increasing production of coal in South Africa and China has led to cooling off of the global coal prices and will positively impact us in the upcoming quarters. Additionally, the recent price increase of ethanol from sugarcane is reflective of government’s continuous effort for compensating the elevated costs of production.
With over four decades of experience in the business we have faced similar cost pressures and have time and again emerged stronger from the same. We are confident of continuing the same and believe that our capacity expansion plan and business strategies are well aligned to capitalise on the market opportunities created by robust consumption led demand.
We would like to highlight the following updates with respect to our individual business segments: In the Grain Processing segment, we continue to remain one of the top manufacturers of sorbitol, fructose syrup and maize starch in the country. All of our product continued to showcase healthy demand in particular the demand for maize starch, used in semi-kraft paper, has increased led by the exponential growth in the e-commerce industry. In order to meet the increased demand, our capacity expansion plan to enhance capacities by 20% in Grain Processing segment is proceeding on schedule.
In the Ethanol (Bio-Fuel)/Distillery segment, we would like to emphasize that our capex plan for establishing a 500 KLPD ethanol facility in Madhya Pradesh is progressing well and a loan of Rs 1,200 Mn has been disbursed from HSBC as of 30th September 2022. The plant's operations are expected to begin in Q4 FY23 which will establish us as dominant player in grain-based ethanol and support the current 60 KLPD facility which continues to operate at more than 100% capacity utilization. The developments at Assam plant are also progressing as planned.
In the mineral processing segment, we expect the revenues from our contract with Meghna Pulp & Paper Mills Limited to start yielding results in upcoming quarter.
The company aims to grow its revenue by expanding its product portfolio through continual R&D and improve its margins by increasing contribution from higher margin products.
We would like to express our gratitude to our employees for their ongoing efforts and our investors/ stakeholders for their support and encouragement as we go forward in capturing the growth prospects that lay ahead of us.”