Anupam Rasayan Aug-24

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Questions and Answers

What is the anticipated trend for the agricultural industry as mentioned?

Demand is expected to strengthen immediately.

There will be an increase in channel inventories.

Current challenges will persist until the end of H1 FY25. (correct)

The agricultural industry is projected to experience no changes.

What was the contribution to revenue from the Pharma segment in Q1 FY25?

20%

15% (correct)

10%

What was the consolidated operating revenue for the quarter?

Rs. 254 crores (correct)

Rs. 280 crores

Rs. 300 crores

Rs. 220 crores

Which segment experienced a lower volume offtake, contributing to the revenue degrowth?

Agrochemical Signup and view all the answers

What is the expected EBITDA margin in Q1 FY25?

23% Signup and view all the answers

What amount is being invested in the hybrid power plant?

Rs. 59 crores Signup and view all the answers

What is the expected annual savings from the hybrid power plant in energy costs?

Rs. 15 crores Signup and view all the answers

When are all the plants expected to be commercialized this year?

By the end of H1 FY25 Signup and view all the answers

What is the purpose of Tanfac's planned CAPEX?

To double their capacity Signup and view all the answers

How does Vishal Thakkar perceive the sufficiency of Tanfac's capacity?

More than enough for future growth needs Signup and view all the answers

What aspect of the financials does S Ramesh inquire about concerning fluorine-based products?

The impact on margin and ROCE Signup and view all the answers

What is an expected outcome from the investment in new CAPEX according to S Ramesh's question?

Improved ROCE Signup and view all the answers

What does the switch in product margins suggest about the strategy discussed?

A focus on higher volume rather than margin per unit Signup and view all the answers

What is the expected result from the expansion of Tanfac's capacity as discussed?

Maintaining current customer service levels Signup and view all the answers

What does 'blended basis' refer to in the context of margin discussions?

Mixing financial results from different segments Signup and view all the answers

What role does S Ramesh see the CAPEX investment playing in the business model?

To ensure long-term business sustainability Signup and view all the answers

What is the estimated additional revenue expected in the second half of the year?

Rs. 80-100 crores Signup and view all the answers

What percentage of this year's revenue is expected to come from LOIs and contracts?

20%-25% Signup and view all the answers

In which fiscal years will the new LOIs and contracts primarily impact revenue growth?

FY26 and FY27 Signup and view all the answers

What might the revenue increase from new capacity be described as for the current year?

Marginal Signup and view all the answers

What is the projected total revenue for the year as mentioned?

Rs. 1,000-1,100 crores Signup and view all the answers

Why is the revenue from new capacity expected to be realized largely next year?

The new capacity is still under development. Signup and view all the answers

What role do LOIs and contracts have on revenue for the current year?

They will contribute to a portion of the revenue. Signup and view all the answers

How will the additional revenue of Rs. 80-100 crores primarily be affected?

Deferral of demand. Signup and view all the answers

What is the expected contribution of Polymer and Pharma sectors according to Vishal Thakkar?

They will contribute more compared to Personal Care Signup and view all the answers

What was the planned capital expenditure (CAPEX) for the current year?

Rs. 670 crores Signup and view all the answers

Why does Vishal Thakkar mention that there is no need to recalibrate the CAPEX for next year?

All necessary growth is expected to be achieved without more CAPEX Signup and view all the answers

What type of investments did Vishal mention for the next year?

Repurposing of outdated factories Signup and view all the answers

How does the competition from China affect the company's products according to Vishal?

There is little to no competition impacting them directly Signup and view all the answers

What is the expected trend in Personal Care's contribution to overall growth?

It will remain stable at 10%-12% Signup and view all the answers

What does Vishal mean by saying 'we don't see any reason for us to not complete this CAPEX'?

They are confident in completing their current CAPEX plans Signup and view all the answers

What factors did Rohit Nagraj express concern about regarding CAPEX?

Pressure from increased competition and market saturation Signup and view all the answers

What is the purpose of the letter submitted by Anupam Rasayan India Ltd?

To submit the transcript of an earnings call for financial results Signup and view all the answers

Which product segment is expected to have a higher margin?

Fluorinated products Signup and view all the answers

On what date was the earnings call held by Anupam Rasayan India Ltd?

August 14, 2024 Signup and view all the answers

Which regulation requires Anupam Rasayan India Ltd to submit the earnings call transcript?

Regulation 30 of the Listing Obligations and Disclosure Requirements Signup and view all the answers

What blended asset turn is expected from the new CAPEX?

1.5x Signup and view all the answers

Who signed the letter as the Company Secretary and Compliance Officer?

Mr. Ashish Gupta Signup and view all the answers

What is the projected revenue from the new CAPEX?

Rs. 1,100-Rs. 1,200 crores Signup and view all the answers

Where can the earnings call transcript be accessed by the public?

On the Company’s official website Signup and view all the answers

What may lead to lower margins in the Pharma segment?

Limited product segments Signup and view all the answers

What total revenue figure is suggested for achieving growth?

Rs. 2,000-Rs. 3,000 crores Signup and view all the answers

What is the registered office address of Anupam Rasayan India Ltd?

11th Floor, Icon Rio, Surat, Gujarat Signup and view all the answers

Which factor is mentioned as contributing to healthy ROCE?

Effective cost management Signup and view all the answers

What financial period does the earnings call pertain to?

Quarter ended June 30, 2024 Signup and view all the answers

What is the CIN number for Anupam Rasayan India Ltd?

L24231GJ2003PLC042988 Signup and view all the answers

What is the expected capital asset turn?

Around 1.5x Signup and view all the answers

What will happen to the current asset block according to the discussion?

It has the capacity to grow. Signup and view all the answers

Study Notes

Anupam Rasayan India Ltd. Q1 FY25 Earnings Conference Call

Date: August 14, 2024
Management:
- Anand Desai – Managing Director
- Gopal Agrawal – Chief Executive Officer
- Amit Khurana – Chief Financial Officer
- Vishal Thakkar – Deputy Chief Financial Officer
Topic: Financial Results (Standalone and Consolidated) for the quarter ended June 30, 2024.
Key Highlights:
- Consolidated operating revenue: Rs. 254 crores (34% degrowth YoY) due to lower Agrochemical segment volumes.
- EBITDA margin: 23% (5% points lower YoY) due to reduced sales.
- Profit after tax: Rs. 12 crores (significant decline YoY).
- Q1 FY25 Standalone Revenue: Rs. 164 crores (43% degrowth YoY).
- Q1 FY25 Standalone EBITDA: Rs. 43 crores (50% degrowth YoY).
- Q1 FY25 Standalone Profit After Tax: Rs. 1.4 crores (significant decline YoY).
- Top 10 customers accounted for 77% of total revenue.
Future Outlook:
- Revenue growth anticipated from H2 FY25 from LOIs and contracts, Pharma, Polymer, and Fluorine Rate molecules.
- Agrochemical segment revival anticipated in second half.
- Completion of CAPEX plans will result in higher company growth.
- Continued focus on cost optimization and operational efficiency (ESG goals).
Investment in Renewable Energy:
- The Company invested Rs. 59 crores in a hybrid power plant (solar and wind energy)
- Aims to achieve 65% green energy usage and become energy net-zero by 2027.
Financial Strategy:
- Working capital expectations to stabilize by FY26.
- New capacity and additional orders expected in second half (increased revenue from 100 crores- 250 crores in second half) -Continued focus on cost optimization.
Business Development:
- Significant market traction in Japan (fluoropolymers)
- Target of one-third of sales coming from Japan.
- New polymer products in R&D targeted for the US market.

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Description

This quiz covers the key highlights and financial results of Anupam Rasayan India Ltd. for the first quarter of FY25. Participants will explore the management insights, revenue performance, and future outlook of the company amidst challenges faced in the agrochemical segment.