Conference Call with Jubilant Ingrevia Management and Analysts on Q3FY23 Performance and Outlook. Listen to the full earnings transcript.
Specialty Chemicals firm Jubilant Ingrevia announced Q3FY23 results: Consolidated Q3FY23: Overall revenue is 10% lower on YoY basis, mainly on account of lower sales performance of the Nutrition & Health Solution Business, while volumes in Specialty Chemicals products and Acetic Anhydride continue to improve. Speciality Chemicals revenue grew by 34% YoY, driven by higher price realization and volume growth across product segments. In Nutrition and Health Solutions business Niacinamide (Vitamin B3) continued to witness lower demand owing to flu impact leading to lower realization, though we have improved our volumes sequentially. Chemical intermediates revenue is lower, mainly impacted on account of lower prices of key feedstock (Acetic Acid). Though we continue to increase our volume of Acetic Anhydride. EBITDA is at Rs 158 Crore. Though Specialty Chemical EBDITA improved, the overall impact is mainly due to significantly lower profitability in the Nutrition business and non-availability of contracted coal leading to higher energy cost. Lower EBITDA also resulted in lower profit after tax. ROCE for the quarter stood at 16.3% on TTM basis, as against 27.8% in FY22. ROE during the quarter stood at 12.7% on TTM basis, as against 21.9% in FY22. Commenting on the Company’s performance, Mr. Shyam S Bhartia, Chairman and Mr. Hari S Bhartia, CoChairman, Jubilant Ingrevia Limited said: “We are pleased to announce stable performance during the quarter under review, amidst the continuing headwinds of higher energy costs and challenging global market situation. We are also glad to share that the Board has recommended interim dividend of 250% i.e. Rs 2.50 per equity share of face value of Rs 1 each for the FY23. This shall result in cash outflow of Rs 39.8 Crore. We are pleased to inform that our Specialty Chemicals Business revenue grew by 34% YoY and absolute EBIDTA grew by 15% YoY driven by higher volumes and improved price realization. In Nutrition & Health Solution business the demand for Niacinamide (Vitamin B3) continue to be subdued impacting our price realization though we have improved our volumes sequentially. The flu situation in EU and US regions is still continuing, though the situation is improving in EU region. The demand-related challenges of Vitamin B3 are short-term and we continue to remain focused towards improving our presence in food and cosmetics segment. In Chemical Intermediates Business the revenue on YoY basis is impacted due to lower prices of feedstock (Acetic Acid), leading to lower sales prices of Acetic Anhydride and Ethyl Acetate. However, we continue to improve our volumes and market share of Acetic Anhydride globally. The company has firm plans to significantly reduce overall energy cost in a phased manner through various initiatives by sourcing power from Grid and renewable sources, optimizing coal consumption through efficiency improvement in consumption as well as in generation. We continue to focus on our growth plans through new products and platforms and we are committed to deliver robust growth in the future.” Result PDF
Specialty Chemical firm Jubilant Ingrevia announced Q2FY23 results: Q2FY23 Consolidated: Overall Revenue grew by 7% on YoY basis, led by higher sales performance of Speciality Chemical Business. Speciality Chemicals revenue grew by 63% YoY driven by volume growth across product segments Nutrition and Health Solutions business continued to witness lower demand owing to post flu impact and excess inventory situation across the value chain, coupled with short term demand impact in Europe due to on-going geo-political situation. Chemical Intermediates volume have grown while revenue is lower, mainly impacted on account of lower prices of key RM i.e. Acetic Acid. EBITDA is at Rs. 160 Crore. Higher input cost due to non-availability of contracted Coal, coupled with lower volumes offtake of Vitamin B3 has impacted EBIDTA, though Specialty Chemical and Chemical Intermediate volumes have grown significantly. Lower EBITDA also resulted into lower profit after tax. ROCE for the quarter stood at 18.9% as against 27.8% in FY22 on TTM Basis ROE during the quarter stood at 14.5% as against 21.9% in ’FY22 on TTM basis H1FY23 Consolidated: Overall Revenue grew by 4% on YoY basis, mainly due to higher sales performance by Speciality Chemical Business. Speciality Chemicals revenue grew by 44% YoY driven by volume growth across product segments Nutrition and Health Solutions business performance was impacted mainly due to impact of Bird & Swine Flu in EU & US region and overall excess inventory situation across the value chain, coupled with short term demand impact in Europe due to on-going geo-political situation. Chemical Intermediates volume have grown while revenue is impacted mainly due to lower prices of key RM i.e. Acetic Acid. EBITDA at Rs. 311 Crore. The EBITDA is impacted due to Chemical Intermediate segments EBITDA normalization, lower volumes offtake of Vitamin B3 and higher input costs impact in Speciality chemical business due to non-availability of contracted coal. Lower EBITDA also resulted into lower profit after tax. ROCE for the period stood at 18.9% as against 27.8% in FY22 on TTM Basis ROE during the period stood at 14.5% as against 21.9% in ’FY22 on TTM basis Mr. Shyam S Bhartia, Chairman and Mr. Hari S Bhartia, Co Chairman, Jubilant Ingrevia Limited said: “We are pleased to announce stable operational and financial performance during the quarter under review, despite continuing headwinds on account of higher energy costs during the current financial Year. Our Specialty Chemicals Business revenue grew by 63% YoY, on account of better demand across all products within the segment. Margins are impacted mainly on account of higher cost of energy due to restriction on contracted coal supplies. While we expect the coal supply to normalize soon, we also continue to explore alternate energy solutions for future. In Nutrition & Health Solution business flu situation in US and Europe is normalizing, however demand of Vitamin B3 continue to be suppressed owing to post flu impact and excess inventory across the value chain. Our focus on niche segments like Food & Cosmetics is showing positive results and we continue to increase our revenue share in this segment. We also believe that the demand challenges of Vitamin B3 are short term. We continue to improve market share in our Animal nutrition business of Vitamin B4 and other Branded Premix products. Our Chemical Intermediates Business continue to witness strong demand resulting in volume growth. Business continues to improve its leadership position in Acetic Anhydride in domestic and international market. Revenue impact on YoY basis was primarily driven by lower prices of feed stock leading to lower sales prices of Ethyl Acetate and Acetic Anhydride. We believe Jubilant Ingrevia Limited is well-positioned to deliver robust growth in the future backed by its comprehensive growth plan for its growth projects. The performance in the coming quarters will be driven by higher share from Specialty Chemicals where Company is scaling its capacity and capability, Nutrition and Health Solutions where the Company is enhancing its value-added range of products and in Chemical Intermediates segment where our core emphasis is on enhancing healthy volume contributions”. Result PDF
Specialty Chemicals firm Jubilant Ingrevia Announced Q1FY23 Result : Overall Revenue grew by 2% on YoY basis, mainly due to higher sales performance by Speciality Chemical Business. Speciality Chemicals revenue grew by 26% YoY driven by volume growth across product segments Nutrition and Health Solutions business performance was impacted mainly due to spreading of Bird & Swine Flu in EU & US region resulting into lower demand. This is a short-term challenge in the segment, and business continues to maintain its market share and leadership position. Chemical Intermediates volume have grown while revenue is impacted mainly due to lower prices of key RM i.e. Acetic Acid. EBITDA at Rs 151 Crore is lower by 47%, mainly due to Chemical Intermediate EBITDA normalization. Nutrition Margins were impacted due to lower sale, while Speciality Margins were impacted due to higher input costs which were passed on partially. PAT declined by 53% YoY driven by lower EBITDA, as explained above. ROCE for the quarter stood at 20.8% as against 27.8% in FY22 on TTM Basis ROE during the quarter stood at 15.7% as against 21.9% in ’FY22 on TTM basis Commenting on the Company’s performance, Mr. Shyam S Bhartia, Chairman and Mr. Hari S Bhartia, CoChairman, Jubilant Ingrevia Limited said: “We are glad to announce steady operational and financial performance in Q1’FY23, in the backdrop of inflationary headwinds leading to higher raw material and energy costs during the quarter. In our Specialty Chemicals Business revenue grew 26% YoY, on account of strong demand across all our product segments. We witnessed significant increase in input costs Including energy costs, which was passed on partially during the quarter, impacting segment’s EBITDA margin. In our Nutrition & Health Solution Business, Niacinamide sales volume were significantly impacted due to spread of Avian and Swine Flu in EU and US regions leading to lower segment revenue and EBIDTA, however the price realization was better during the quarter. This is a short-term challenge in the segment, and business continues to maintain its market share and leadership position. Our Chemical Intermediates Business, continue to witness strong demand resulting into volume growth. Business is maintaining the leadership position of Acetic Anhydride in Domestic market and also Improving our market share in Europe. On YoY basis segment has witnessed normalization of market situation and lower Acetic Acid prices, which is also reflecting into both Revenue and EBITDA. We are fully committed towards our growth aspirations and we are excited to realise the emerging opportunities going forward in all our business segments. We are fully confident of moving ahead with our well defined growth capex plan, which is supported by our internal accruals. Our aim is to achieve sustainable profitable growth in medium term and structurally we are poised towards moving on to the next tier of performance in our growth journey and margins”. Result PDF