Commodity Chemicals company Gulshan Polyols announced Q4FY23 & FY23 results: Q4FY23: Revenue from operations increased by 3.19% from Rs 2,922.27 million in Q4FY22 to Rs 3,015.37 million in Q4FY23 EBITDA increased by 11.07% from Rs 260.04 million in Q4FY22 to Rs 288.84 million in Q4FY23 and margins from 8.90% in Q4FY22 to 9.58% in Q4FY23 PAT stood at Rs 145.50 million in Q4FY23, compared to Rs 116.68 million in Q4FY22 recording a increase of 24.70% FY23: Revenue from operations increased by 7.18% to Rs 11,797.30 million in FY23 from Rs 11,007.26 million in FY22. The revenue growth was led by healthy demand for products across all our segments. EBITDA decreased by 37.41% from Rs 1,521.65 million in FY22 to Rs 952.43 million in FY23 and margins from 13.82% in FY22 to 8.07% in FY23 owing to elevated commodity prices impacting raw material and due to elevated coal prices. However, on a sequential basis, margins increased from 7.3% in Q3FY23 to 9.6% in Q4FY23 PAT stood at Rs 453.62 million in FY23, compared to Rs 852.49 million in FY22 recording a decline of 46.79% due to operational factors as mentioned above and raised finance cost consequent to ongoing expansions. Commenting on the performance of FY23, the management team of the company states, “We are delighted to share our financial and business performance for Q4FY23 and FY23. Revenue from operations stood at Rs 3,015.37 million and Rs 11,797.30 million respectively with a growth of 3.19% on a quarterly basis and healthy growth of 7.18% annually. The company continued to witness strong demand for its products across all segments during the quarter and recorded the highest-ever yearly sales. Our revenue from operations grew in a steady manner with the support of continued peak utilization of our capacities. The company continues to face pressure on account of Raw Material Prices across the Grain Processing and Ethanol Division and thus our margins have declined during Q4FY23 compared to Q4FY22 due to elevated key input prices, however, it was marginally aided by an increase in grain-based ethanol prices and fast execution of key contracts in the mineral processing segment. Further, On the ESG front, we continue to transform lives of the community around us and are consistently focused on sustainability in all our operational and growth planning." Result PDF
Commodity chemical manufacturer Gulshan Polyols announced Q3FY23 results: Q3FY23 vs Q3FY22: Revenue from operations increased by 13.3% to Rs 3,316.2 million in Q3FY23 from Rs 2,926.6 million in Q3FY22. The revenue growth was led by healthy demand for products across all our segments. EBITDA decreased by 31.4% from Rs 352.3 million in Q3FY22 to Rs 241.8 million in Q3FY23 and margins contracted from 12% in Q3FY22 to 7.2% in Q3FY23 owing to elevated commodity prices impacting raw material and power & fuel cost. However, on a sequential basis, margins remained stable from 7.3% in Q2FY23 to 7.2% in Q3FY23. PAT stood at Rs 118.5 million in Q3FY23, compared to Rs 190.5 million in Q3FY22 recording a decline of 37.8% due to operational factors as mentioned above. 9MFY23 vs 9MFY22: Revenue from operations has remained stable to Rs 8,781.9 million in 9MFY23 from Rs 8,085.0 million in 9MFY22. EBITDA decreased by 47.4% from Rs 1,261.6 million in 9MFY22 to Rs 663.6 million in 9MFY23 and margins contracted from 15.6% in 9MFY22 to 7.5% in 9MFY23. PAT stood at Rs 311.2 million in 9MFY23, compared to Rs 735.8 million in 9MFY22 recording a decline of 57.7%. Result PDF
Commodity chemicals firm Gulshan Polyols announced Q2FY23 results: Q2FY23 vs Q2FY22: Revenue from operations has remained stable at Rs 2,763.8 million in Q2FY23 from Rs 2,772.8 million in Q2FY22. Considering the peak use of manufacturing facilities led by strong demand for products the revenue growth was limited EBITDA decreased by 57.0% from Rs 474.0 million in Q2FY22 to Rs 203.9 million in Q2FY23 and margins contracted from 17.1% in Q2FY22 to 7.3% in Q2FY23 owing to elevated commodity prices impacting raw material and power & fuel cost PAT stood at Rs 90.9 million in Q2FY23, compared to Rs 283.7 million in Q2FY22 recording a decline of 68.0% due to operational factors as mentioned above H1FY23 v/s H1FY22: Revenue from operations has increased from Rs 5,158.4 million in H1FY22 to Rs.5,465.7 million in H1FY23. COGS/Input costs have increased by 23.2% as compared to the same period YoY considering the increased raw material cost and power cost Subsequently the EBITDA margins declined from 17.6% in H1FY22 to 7.7% in H1FY23 PAT stood at Rs 192.7 million in H1FY23, compared to Rs 545.3 million in H1FY22 and margins decreased to 3.5% in H1FY23 from 10.6% in H1FY22. 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.” Result PDF
Commodity Chemicals firm Gulshan Polyols announced Q1FY23 Result : Revenue from Operations reported at INR 2,701.8 Mn in Q1 FY23 EBITDA stands at INR 217.8 Mn in Q1 FY23 PAT at INR 101.9 Mn in Q1 FY23 Revenue from Operations grew by healthy 13.3% from INR 2,385.6 Mn in Q1 FY22 to INR 2,701.8 Mn in Q1 FY23 backed by healthy growth across our three segment. EBITDA degrew by 50% from INR 435.3 Mn in Q1 FY22 to INR 217.8 Mn in Q1 FY23 owing to decline in EBITDA margin from 18.2% to 8.0% primarily led by commodity cost headwinds faced by the industry on account of continued high inflation in the prices of basic raw materials, rice and maize. Further, global supply chain issues related to coal supply has also led to significant increase in power cost which impacted the margin. Net profit has decreased by 61.1% from INR 261.6 Mn in Q1 FY22 to INR 102.0 Mn in Q1 FY23. The Net Profit Margins were at 3.8% in Q1 FY23 from 10.9% in Q1 FY22 due to increased operating costs as mentioned above. Commenting on the performance of Q1 FY23, Dr. Chandra Kumar Jain, Chairman and Managing Director, Gulshan Polyols Ltd. Said “We are happy to share with you our financial and business performance for Q1 FY23, revenue from operations stood at INR 2,701.8 Mn showing a growth of 13.3% on YOY basis predominantly driven by good growth across our three business segment. We have managed to achieve good growth across all the three segment during the quarter. In each of the segment we witnessed robust and satisfying demand. One of the key challenges faced by us during the quarter was the rising price of coal and other input costs. The global coal crisis has led to an increase in our power cost. Further, overall inflation headwinds impacted our basic raw material prices as well thereby putting stress on our EBITDA margins on a yearly basis. We expect the raw material related cost pressures to start easing out from third quarters onwards as we witness fresh harvesting of kharif crops and some respite in coal cost. Further, we continue to take steps in direction of sustaining and further improving our operating margins with operational efficiencies, capacity augmentation and upgradation in our Ethanol & Grain Processing segment. We would like to highlight the following updates with respect to our individual business segment: Our grain processing segment is steadily recording an increased market share of our product offerings and increased utilization of our plant capacities. Specifically, our product, sorbitol (70%), maize starch and fructose syrup are market leaders and continue to show decent growth. We are continually adding newer products to market which are highly effective and efficient for their intended purposes. In view of robust demand and high product acceptance, we are on track of adding of ~ 20% capacities across facilities in this segment." Result PDF
Commodity Chemicals company Gulshan Polyols declares Q3FY22 result: 9M’FY22 Revenue from Operations stood at Rs 80,849.97 Lakhs vs. Rs 53,868.90 Lakhs in 9M’FY21, showing a notable growth of 50%, similarly, Net Profit at Rs 7,380.28 Lakhs vs. Rs 4091.19 Lakhs in 9M’FY21, which is 80 %Up) with a impeccable growth.) Q3’FY22, Revenue from Operations stood at Rs 29,266.10 Lakhs vs. Rs 20,912.89 Lakhs in Q3’FY21, showing strong growth of 40%, similarly, Net Profit at Rs 1,913.34 Lakhs vs. Rs 1860.48 Lakhs in Q3’FY21. Reported EBITDA at Rs 12636.62 Lakhs as compared with Rs 8840.06 Lakhs in Q3’FY21, grown by 43 %. EBITDA to Revenue stands at 16 % in 9M’FY22. Net Profit to Revenue increased to 9% from 8 % in 9M’FY21. These nine months reflected the strong positive free cash flows at Rs 9,771.68 Lakhs versus Rs 6,484.64Lakhs in 9M’FY21, grown by Rs 3,287.04 Lakhs which is almost 51 %. Finance costs reduced to Rs 358.22 Lakhs as compared to Rs 482.83 Lakhs in 9M’FY21. EPS improved to Rs 15.73 from Rs 8.72 in 9M’FY21. EBITDA to Revenue stands at 12 % in Q3’FY22 which is equivalent to Rs 3,530.67 lakhs. Net Profit to Revenue at 7% in Q3’FY22. The quarter reflected positive free cash flows at Rs 2,748.22 Lakhs versus Rs 2,683.32 Lakhs in Q3’FY21 grown by Rs 64.90 Lakhs. EPS improved to Rs 4.08 from Rs 3.97 in Q3’FY21. BRIEFING BY DR. CHANDRA KUMAR JAIN, CHAIRMAN AND MANAGING DIRECTOR OF GULSH: POLYOLS LIMITED ON THE COMPANY’S PERFORMANCE: It is really appreciable that your Company is emerging stronger and healthier and is scaling new heights. During the quarter, we worked diligently by assuring employees’ safety while continuing to serve our customers by running our operations successfully. The 9 months results demonstrate that our business strategy is working well which is evident by revenue growth of 50% in 9M’FY22 (YOY). | am glad to say that we are setting new precedents and marking higher from our own performance and financial numbers and moving ahead quarter on quarter. Among other segments; the Grain Processing business has grown significantly as it has contributed to a revenue growth by Rs 21220.82 Lakhs in 9M’FY22 vs. 9M’FY21, up by 55% of comparative total revenue growth, due to good and continuous demand. Further, the Ethanol and Distillery segment is doing well in producing and supply of ‘Ethanol’ to Oil marketing companies and other public sector companies. It has contributed into revenue growth by 5833.64 Lakhs in 9M’FY22 vs. 9M’FY21, which is at 67 % Growth continues accelerating in Q3 with resilient operating margins. Your company is combatting the global coal crisis which has led to increase in “power and fuel cost” by 70%, and in addition to this, a rise in raw material price by 33% in Q3FY22 (YOY) has affected the profitability and hence the bottom line. Despite that, Company is continuously focusing on achieving its targets by constantly improving its sales volumes, sales price realization and optimizing cost wherever possible. A sequential growth in revenues and a consistent demand in the Grain processing and Ethanol segment, is driving growth for the Company. Simultaneously, we continue to strengthen employee’s value proposition including health and wellness measures, re-skilling programs, appropriate compensation interventions, ESOPs and enhanced career growth opportunities. Our recent priority has been to vaccinate our employees with agility and we have been holding various vaccination drives at our plants across the country, towards this endeavor. I am happy to report that at present more than 70% of our employees are vaccinated across the organization with at least one shot of the Vaccine." Result PDF