DCW Ltd.

NSE: DCW | BSE: 500117 | ISIN: INE500A01029 | Industry: Petrochemicals
| Strong Performer, Under Radar
54.80 -0.15 (-0.27%)
NSE Sep 23, 2022 15:31 PM
Volume: 3.3M
 

Rapid Results Alerts
DCW Ltd.    
12 Aug 2022
54.80
-0.27%

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

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