Petrochemical firm DCW announced Q2FY23 results: Q2FY23 & H1FY23: Revenue from operations for H1FY23 stood at Rs 14,664.3 million, delivering growth of 34.2% on a YoY. Improved operational efficiency of the SIOP plant, coupled with favourable market conditions in Soda ash and Caustic Soda, led to robust performance in H1FY23. EBITDA for H1FY23 stood at Rs 2,346.9 million, compared to Rs 1,403.0 million in H1FY22, delivering growth of 67.3% YoY. PVC prices have fallen significantly over the last two quarters. However, the company’s diversified portfolio, with the critical components of Specialty chemicals, mitigated the volatility and delivered stable margins for Q2FY23. PAT stood at Rs 1,084.1 million in H1FY23, compared to a profit of Rs 330.4 million in H1FY22, delivering growth of 228.1% YoY. Commenting on the results, Mr. Vivek Jain, Managing Director, DCW Ltd., said, "The Company's performance in H1FY23 is testimony to our long-drawn strategy of diversifying our product portfolio in a manner which provides resilience as well take advantage during favourable market conditions. As we have witnessed over the past several quarters, CPVC and SIOP performance has been relatively resilient and are contributing 25-30% in overall EBITDA on a steady state basis. Once we optimise our SIOP plants, the contribution from SIOP will further improve, bringing more consistency and stability to our earnings. The commodity segment business remains aligned with market conditions. In H1FY23, the Company saw a remarkable performance from Soda Ash and Caustic Soda with PVC remaining soft. With the strategy of making our operations more efficient and the balance sheet more robust, the Company refinanced its high interest-bearing NCDs with market-aligned finance from leading bankers. This is expected to save our interest costs and cash outflows significantly. We believe our debt remains appropriate, with Net Debt to EBITDA expected to go down to levels of 1 by the end of this fiscal. We continue to look for an opportunity to utilise our in-house chlorine for various purposes. We are at an exciting crossroads for a long, sustained growth journey. We continue to endeavour a roadmap to create new highs going forward.” Result PDF
Petrochemicals firm DCW announced Q1FY23 Result : DCW continues its solid growth momentum in Q1FY23 - its diversified portfolio defends against volatility. Reports growth of 47.7% in Revenue YoY and 108.1% EBITDA YoY for Q1FY23. A diversified product portfolio aids in countering volatility, imparting growth and stability. Strength of specialty chemicals portfolio imparts overall stability to total earnings. PVC segment got impacted with high Raw material costs and challenging market dynamics. Revenue from operations for Q1FY23 stood at INR 7,686.5 Mn, delivering growth of 47.7 % on a YoY and 8.7% QoQ. Better operational efficiency, coupled with favourable market conditions across all its products, led to an overall improvement in revenue. SIOP, Soda Ash and Caustic Soda lead the growth with C-PCV affirming the stability in overall revenue. EBITDA for Q1FY23 stood at INR 1,239.8 Mn, compared to INR 595.9 Mn in Q1FY22, delivering growth of 108.1% YoY and 24% QoQ. Higher raw material prices for PVC kept the margin of the Company restricted to 16.1%, which could have been better. Despite such a tailwind on RM front, margins were higher by 190 bps QoQ and 470bps YoY. The Company was able to pass on the higher costs of RM for commodities such as Soda Ash and Caustic soda from Q4FY22 onwards, which will gradually get reflected in coming quarters. However, raw material inflation remains a predominant challenge to the Company and the overall industry. The Company aims to gradually pass on the higher RM costs for C-PVC in the coming quarters. PAT stood at INR 587.7 Mn in Q1FY23, compared to a profit of INR 133.7 Mn in Q1FY22 delivering growth of 340% YoY and 23% QoQ Commenting on the results, Mr. Vivek Jain, Managing Director, DCW Ltd. said, “DCW has come a long way from being the first soda ash Company in India, to becoming the first CPVC manufacturer in India. The Company's diversified product portfolio has helped in mitigating the volatility within global commodity prices. Besides protecting volatility, the diversified product portfolio has also helped in providing growth and stability to the Company. CPVC and SIOP have reached a stage where, besides imparting growth, they are now providing resilience in the overall margin profile of the Company. Its consistently improving performance is proving to be a secure base for the Company's earnings and is expected to be the premier growth driver over the coming years. On the commodities front, where PVC took the front seat in FY22, Q1FY23 witnessed softening in PVC performance which was backed by caustic soda and soda ash taking the lead and turn a challenging environment into a strong quarter. The Specialty chemicals segment remains a steady revenue generator and shows tremendous potential going ahead. The Company’s SIOP segment has witnessed steady growth over the last three years and has reached its highest capacity utilisation of 71% in Q1FY23. The SIOP segment has a strong order book, which gives sustained visibility for FY2023. The Company expects its CPVC business segment to stabilize to its earlier margin over FY2023 once higher raw material priced inventory is consumed. On the commodity chemicals front, Soda Ash has been witnessing a good demand scenario, which has helped us to report better performance. Besides Soda Ash, our Caustic Soda division is also witnessing strong momentum. The strong recovery in these commodities, coupled with strategic initiatives on the operations front, were the key drivers of the Company’s underlying performance. We continue to focus on excellence by leveraging our well-balanced portfolio, focusing on better operating performance and maintaining quality standards.” Result PDF
Petrochemicals company DCW declares Q4FY22 result: DCW reports Q4&FY22; results; PAT surpasses INR 1bn Specialty Chemical Revenue for FY22 increases 55% YoY, EBITDA by 36% YoY Specialty chemicals EBITA contribution stands at INR 883mn, 26.7% of overall EBITDA Capacity utilisation improves across all the segment Revenue from operations for FY22 stood at INR 24.5 bn, delivering a growth of 68 % on a YoY basis. Better operational efficiency coupled with favourable market conditions across all its products led to an overall improvement in revenue. EBITDA for FY22 stood at INR 3309 Mn compared to INR 2,207 Mn in FY21, delivering a growth of 50% YoY; higher capacity utilisation favourable demand scenario led to better absorption of higher raw material costs. The Company has been able to pass on these costs to end consumers from Q4 onwards, which shall gradually reflect in coming quarters. However, raw material inflation remains a predominant challenge to the Company and the overall industry. The Company has achieved all time high PAT of INR 1,075 mn in FY22, and it nearly grew 27x over FY21. Commenting on the results, Mr. Vivek Jain, Managing Director, DCW Ltd. said, “FY22 has been a remarkable year for the Company, not only on profitability front but also on operations, balance sheet and cash flows front. Company surpassing INR 1bn in PAT is a testimony of company continuous and focused approach towards scaling up the processes and its product offerings. Transiting from Commodity chemicals dominated earnings to Speciality chemicals led growth was an encouraging and satisfying journey so far. We have been able to ignite all our growth silos at the right time, continuing to move with an inspiring momentum. We began our Fiscal year with strong CPVC performance, and later on gradually every segment picked up its growth momentum. Casutic soda performed exceptionally well in Q4FY22, which makes this segment a vital contributor to companys overall profitability. The Specialty chemicals segment remains a steady revenue generator and shows tremendous potential. Revenue and EBITDA from Specialty chemicals have been continuously improving every year and have been moving from strength to strength as we further focus on scaling up the operating efficiency of this business. It remains a growth engine driver from here on for the next 1-3 years. Besides PVC on commodity chemicals front, our Caustic Soda division is also witnessing strong momentum. From Q4FY22 soda ash too joined the growth band wagon and saw a satisfying recovery. The strong rally in these commodities, coupled with strategic initiatives on the operations front, were the key drivers of the Company’s underlying performance. We continue to focus on excellence by leveraging our well-balanced portfolio, focusing on better operating performance and maintaining quality standards.” Result PDF