Specialty Chemicals company Tatva Chintan Pharma Chem announced Q1FY24 results: Revenue from operations of Rs 1,143.64 million in Q1FY24 compared to Rs 884.02 million in Q1FY23, up 29.37% YoY EBITDA (Excl. other income) of Rs 213.43 million in Q1FY24 compared to Rs 152.17 million in Q1FY23, up 40.26% YoY EBITDA Margin of 18.66% in Q1FY24 compared to 17.21% in Q1FY23 Profit before tax of Rs 134.20 million in Q1FY24 compared to Rs 136.95 million in Q1FY23, down 2.01% YoY Profit after tax of Rs 95.04 million in Q1FY24 compared to Rs 97.97 million in Q1FY23, down 2.99% YoY PAT margin of 8.31% in Q1FY24 compared to 11.08% in Q1FY23 Cash profit of Rs 155.16 million in Q1FY24 compared to Rs 121.3 million in Q1FY23, up 27.91% YoY Commenting on the results, Chintan Shah, Managing Director said, "I am pleased to inform you that TATVA CHINTAN has begun this financial year on a satisfactory note, in line with our expectations and we expect the improvement to gradually continue over the coming quarters. The year has started with better off-take and a favorable product mix translating into better numbers for this quarter. During this quarter, the company has reported revenue from operations of Rs 1,144 million, a growth of 29% YoY from Rs 884 million. EBITDA during the quarter was at Rs 213 million, a growth of 40% YoY from Rs 152 million. EBIDTA margins were at 18.7% v/s 17.2% in Q1FY23. The inventory (other than spares and packing materials) at consolidated levels has come down by nearly Rs 125 million from Rs 1,325 million as of March 2023 to Rs 1,200 million as of June 2023. The logistic costs have steadily reduced to realistic levels which has come as a breather. Also, the price reduction in the chemical space seems to have lost pace and the prices have begun to stabilize in the past few weeks. I am quite happy and proud, to inform you that we successfully commenced commercial production from the newly expanded facility at Dahej SEZ. With this the installed reactor capacity increased to 500KL from 294KL and assembly lines increased from 27 to 39." Result PDF
Specialty chemicals company Tatva Chintan Pharma Chem announced Q4FY23 & FY23 results: Q4FY23 vs Q4FY22: Revenue from operation: Rs 1,245.11 million vs Rs 985.31 million, up 26.37% YoY EBITDA (Excl. Other Income): Rs 162.74 million vs Rs 219.94 million, down 26.01% YoY EBITDA margin: 13.07% vs 22.32% Profit before tax: Rs 78.02 million vs Rs 189.76 million, down 58.88% YoY Profit after tax: Rs 169.54 million vs Rs 175.09 million, down 3.17% YoY PAT margin: 13.62% vs 17.77% FY23 vs FY22: Revenue from operation: Rs 4,236.12 million vs Rs 4,336.47 million, down 2.31% YoY EBITDA (Excl. Other Income): Rs 605.81 million vs Rs 1,082.35 million, down 44.03% YoY EBITDA margin: 14.30% vs 24.96% Profit before tax: Rs 447.79 million vs Rs 1,041.21 million, down 56.99% YoY Profit after tax: Rs 454.87 million vs Rs 958.74 million, down 52.56% YoY PAT margin: 10.74% vs 22.11% Commenting on the results, Chintan Shah, Managing Director, said, “Over the past decade, the Indian chemical sector had been growing rapidly. However, FY23 had been a roller coaster year for most of the chemical industries. Despite all geopolitical uncertainties, the Indian chemical industry showed good resilience. Many of the challenges are set to persist in 2023. Against a backdrop of fear of global recession and expectation of muted demand till H1FY24, Tatva Chintan continues to remain fairly optimistic about achieving reasonable growth. Most of the key raw material prices have dropped by 15%-25% which is also translating into reduced prices of the finished products. So, this becomes a big challenge for us to achieve revenue growth. Also due to muted global demand across most of the sectors, we are seeing continuous cost pressures coming from customers which would translate into slightly lower spreads on margins. I feel Tatva Chintan is fortunate with the timing of the launch of new products on a commercial scale during this financial year and also with the gradual rebound in the SDAs demand. Despite the challenging year ahead and even with the reduced product pricing we anticipate to grow by 20%-30% in FY24. Also, we anticipate slightly improving the EBITDA margins due to forecasted change in the product mix.” Result PDF
Conference Call with Tatva Chintan Pharma Chem Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.