Vishnu Chemicals Results: Latest Quarterly Results & Analysis

Speciality Chemicals company Vishnu Chemicals announced consolidated Q4FY24 & FY24 results:

• The 7% Preference Shareholders, who are also promoters of the company, have waived off 100% of preference dividend for FY24. Preference dividend waived off for the quarter is Rs 1.3 crore and for twelve months ending March 31, 2024 is Rs 5.3 crore
• Vishnu’s board has proposed a final dividend of Rs 0.3 per equity share (15% of face value) for FY24.
• Agile mix of domestic and export sales in the ratio of 53:47
• EBITDA Margin expanded by 766 basis points in Q4FY24 at 21.2% compared to 13.5% in Q3FY24.
• Margin expansion was driven by disciplined investments across both value addition and backward integration initiatives
• Performance was steered by strong improvement in the Barium Chemicals.
• Record volumes produced and sold with margin expansion, all while aiding our international clients recover from challenging macro environments.
• Prudent spending kept operational expenses flat YoY.
• Balance sheet and liquidity position:
  • Reduction in consolidated long term borrowings by Rs 90.9 crore in FY24.
  • Debt to Equity at 0.45
  • Cash, Cash Equivalents & Bank Balances at Rs 60.4 crore.
• The Red Sea crisis has increased transit times by 2-4 weeks. As a result, the company is maintaining higher inventories of raw materials to ensure continuous supply of feedstock, as well as higher inventories of finished goods to enable quick dispatches.
• External credit rating upgraded from CARE BBB to CARE A

Ch. Krishna Murthy, CMD, Vishnu Chemicals Limited said, “Vishnu Chemicals is pleased to end the financial year 2023-24 on a high note. The macroeconomic headwinds faced by the speciality chemicals industry and our customers proved this year to be a significant test for us. Our answer to this was our resilience, where we never compromised on our principles and prioritised customer success with the focus on margin expansion. Going in FY25, we continue to work tirelessly to achieve growth and continuous improvement.”

Ch. Siddartha, JMD, Vishnu Chemicals said, “Our performance was driven by our core belief of being persistent in any circumstance, taking measured risks and keeping the communication simple. Vishnu has entered FY25 with the same core belief of doing business with efficiency, nurturing complex chemistry, seizing opportunities and never compromise on our efforts.”

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Vishnu Chemicals announced Q1FY24 results:

• Total Income of Rs 303 crore in Q1FY24 compared to Rs 361 crore in Q1FY23, down (16)% YoY
• Gross Profit of Rs 139 crore in Q1FY24 compared to Rs 153 crore in Q1FY23, a decrease of (9)% YoY
• Gross Margin of 46.3% in Q1FY24 compared to 42.5% in Q1FY23, an increase of 372 bps YoY
• EBITDA of Rs 53 crore in Q1FY24 compared to Rs 61 crore in Q1FY23, a decrease of (12)% YoY
• EBITDA Margin of 17.6% in Q1FY24 compared to 16.8% in Q1FY23, an increase of 85 bps YoY
• PAT of Rs 29 crore in Q1FY24 compared to Rs 34 crore in Q1FY23, a decrease of (16)% YoY
• PAT Margin of 9.4% in Q1FY24, unchanged from 9.4% in Q1FY23

Ch. Krishna Murthy, CMD, Vishnu Chemicals said,

“The Company delivered good sales in both Indian and international markets, which validates the robust demand for our products even in a challenging environment. Most of our products constitute import substitution and thus find a good demand from domestic markets. In the relative scheme of things, Q1 has been a very good quarter if we factor in the maintenance in Chromium Chemicals and integration of a new plant in Barium Chemicals.”

Ch. Siddartha, JMD, Vishnu Chemicals said,

“We are consistent in our commentary on the way we run our company. ROCE and a healthy balance sheet are key tenets of our business. The company is focused on building a strong portfolio of products with newer grades so that we are not affected by a single product or market.”

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Specialty Chemicals firm Vishnu Chemicals announced Q4FY23 & FY23 results:

• Q4FY23:
  • Total Income:  Rs 339 crore, up  1% YoY 
  • EBITDA: Rs 64 crore, up 20% YoY
  • EBITDA Margin: 18.9% vs 15.8% in Q4FY22
  • PAT: Rs 36 crore, up 25% YoY
  • PAT Margin: 10.5% vs 8.5% in Q4FY22
• FY23:
  • Total Income: Rs 1,406 crore, up 31% YoY
  • EBITDA: Rs 245 crore, up 52% YoY
  • EBITDA Margin: 17.4% vs 15.0% in FY22
  • PAT: Rs 137 crore, up 68% YoY
  • PAT Margin: 9.7% vs 7.6% in FY22
• Consistent Track Record:
  • 3 years Total income CAGR 27%
  • 3 years EBITDA CAGR 41%
  • 3 years PAT CAGR 83%
  • Generating positive free cash since FY18

Ch. Krishna Murthy, CMD, Vishnu Chemicals said, “We focus on our business as a whole not only the production assets but also the logistics, marketing, and talent development. With a disciplined approach, we will continue our focus on key priorities to operate with diligence & responsibility and create long-term value for our shareholders. We would like to express our gratitude to our stakeholders for their continued support and remain committed to the highest level of corporate governance and ethics.”

Ch. Siddartha, JMD, Vishnu Chemicals said, “The consistent performance is an outcome of our size which is hard to replicate, and a product mix that gives us the flexibility to produce as per demand. We are pleased to deliver holistic improvement and will continue to our nurture our chemistry, which is essential for key applications with limited competition globally.”

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Vishnu Chemicals announced Q3FY23 results:

• Consolidated Q3FY23:
  • Total Income Rs 331 crore  11% YoY.
  • Q3FY23 EBITDA Rs 58 crore  26% YoY.
  • Q3FY23 PATRs 32 crore  29% YoY.
•  Consolidated 9MFY23:
  • Total Income Rs 1,068 crore  44% YoY.
  • EBITDA Rs 181 crore  67% YoY.
  • PAT Rs 101 crore  91% YoY.

Mr. Ch. Krishna Murthy, CMD, Vishnu Chemicals Limited said, “Driven by highly principled values and integrity, the result of meaningful capex done over the past few years is visible in the way we have created value. The outlook appears positive and is driven by a combination of micro and macro factors. Our market share is expanding due to our multi-site capabilities, manufacturing focus, procurement strategies and balanced approach to improve our profits.”

“Our focus on core chemistries will drive our ROCE as we are optimistic about our capabilities and the ecosystem around us. The Company is well positioned to capitalize extensively on sectoral crests and adequately resist macro headwinds to emerge as a responsible and resilient organization,” said Mr. Ch. Siddartha, JMD, Vishnu Chemicals Limited.

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Specialty chemical manufacturer Vishnu Chemicals announced Q2FY23 results:

• Q2FY23 Total Income Rs. 375 crore up 55% YoY
• Q2FY23 EBITDA  Rs. 63 crore up 82% YoY
• Q2FY23 profit after tax (PAT) up 111% YoY
• Vishnu Chemicals continues to report record quarterly Sales, EBITDA & PAT.
• Consolidated domestic and export sales continued their growth trend, growing by 57% and 53% YoY.
• Expansion of 245 bps in EBITDA margin YoY and 250 bps in PAT margin YoY in Q2FY23.
• Unwavering focus on manufacturing had led the company to be a global leader in terms of gross asset turnover and ROCE amidst peers. Gross asset turnover & ROCE reached the highest levels of 2x & 35% respectively.
• Debt to Equity reduced to 1.0 from 1.3 in FY22.
• The company continues to improve its working capital efficiency resulting in a reduction in Inventory & Debtor days.
• Board approves 1:5 stock split

“The second quarter was another record performance for Vishnu Chemicals, as the Company demonstrated resilience amidst the macro environment due to its diversified product and application mix. Stepping back, in the second quarter, we continued to demonstrate our ability to make progress on our clear operational priorities. With our targeted investments, we will continue to drive long-term growth above market growth rates by providing value to our customers around the world.,” said Mr. Ch. Krishna Murthy, CMD, Vishnu Chemicals Limited.

Mr. Ch. Siddartha, JMD, Vishnu Chemicals Limited, added, “I am pleased with our execution in the second quarter, as we focused on productivity for our customers in their tough time, which has never been more important than it is today. But there is still a significant amount of work to be done. The momentum we have is clearly evident with our ROCE levels and working capital efficiencies making us the most efficient producer in our chemistries globally, which we will continue to monitor and improve. We have industry-leading expertise, a global footprint, and clear priorities with plenty of runway for growth.”

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Vishnu Chemicals announced Q1FY23 Result :

• Vishnu Chemicals has reported yet another quarter of strong growth and performance.
• The company delivered its best performance in all key areas:
  • Record operating levels.
  • Highest quarterly Sales, EBITDA, EBITDA margin, PAT and PAT margin.
  • Healthy balance sheet with holistic improvement in return and leverage metrics.
• Expansion of 273 bps in EBITDA margin YoY and 92 bps QoQ, despite power cut measures taken by the states in Q1.
• Consolidated domestic and exports sales continue its growth trend, growing by 102% and 65% YoY.

“The Company is delighted to report its latest quarterly performance. Our focus to maximize the benefits of our scale and experience in chemistry is reaping benefits. We are continuously improving our manufacturing processes that combine environmental and economic benefits by comprehensive use of resources and ability to handle complex reaction media. Over the years, Vishnu has built a fundamentally strong balance sheet, as well as a good liquidity position.,” said Mr. Ch. Krishna Murthy, CMD, Vishnu Chemicals Limited.

“Vishnu Chemicals is consistently focused on manufacturing high quality speciality chemicals, combined with value-added sales and service, enhancing customer satisfaction which enables us to be the supplier of choice in the sector we operate. Our performance enhancing chemicals portfolio and strong emphasis on manufacturing is a clear differentiator that has been made possible due to years of R&D and hard work of our skilled work force. We are optimistic about our chemistry and positive about delivering value accretive returns from our operational canvas,” said Mr. Ch. Siddartha, JMD, Vishnu Chemicals Limited.

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Vishnu Chemicals declares Q4FY22 result:

• Crosses Rs 1000 Cr Sales Milestone FY22 PAT more than doubled to Rs 81 Cr
• The year gone by has given us a sense of accomplishment in terms of output, sound financial health and national & global recognition to our chemistry.
• The company delivered its best performance in all key areas:
  • Record operating levels.
  • Highest ever Sales, EBITDA and PAT.
  • Growth with strong balance sheet as focus.
  • ROCE of 25% and ROE of 29%.
• Domestic and exports sales grew by 56% and 58% respectively in the last 12 months, despite pandemic induced disruptions globally.
• Expansion of 317 bps in EBITDA margin YoY  was aided by scale, paramount quality, operational flexibility, emphasis on supply chain and strengthened procurement planning.

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Vishnu Chemicals declares Q3FY22 result:

• Consolidated Revenues growth of 123% YoY
• Consolidated EBITDA growth of 198% YoY
• Consolidated PAT growth of 568% YoY
• The company is thankful to its stakeholders whose contributions have led to record the highest ever consolidated quarterly performance across all key indicators such as Revenues, EBITDA and PAT.
• Consolidated EBITDA margin expanded by 386 basis points YoY due to improvement in operating environment, better pricing power and therefore, operating leverage.
• Consolidated EPS has grown at CAGR of 55% per year, compound, in the last four years.

“The results are an outcome of the organisation built brick by brick over the years. We continue to build upon the momentum in our growth trajectory as the demand looks robust. Our key tenet has been to manufacture high performance specialty chemicals that stand the test of time and quality, which instils huge confidence in our global customer base,” said Mr. Ch. Krishna Murthy, CMD, Vishnu Chemicals Limited.

“It is really satisfying to share the Q3FY22 quarterly results. The first nine months of this financial year have been rewarding in more than one ways. Our focus on manufacturing gives us the clarity of purpose. Stable, consistent supply and quality has helped the company create a long sustainable relationship with our clients, which is not easy to establish. The backward integration plant is a milestone for the company, a very strong asset and it implies that we will be healthy and profitable even in a buyer’s market. We continue to learn, hustle and respond with discipline & integrity to build resilient processes.” said Mr. Ch. Siddartha, JMD, Vishnu Chemicals Limited.

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Highlights:

• Consolidated Revenues up 32% YoY, EBITDA up 70% YoY
• Consolidated EBITDA margin at 14.3%, up 330 bps YoY
• Consolidated PAT up 123% YoY.
• Q2FY2021-22
  • Income was up 32% at INR 241.8 crore as compared to INR 182.6 crore in Q2FY21.
  • EBITDA was up 70% at INR 34.5 crore as compared to INR 20.2 crore in Q2FY21.
  • EBITDA margin expanded by 330 basis points to 14.3% compared to 11.0% in Q2FY21.
  • PAT was up 123% at INR 16.6 crore as compared to INR 7.4 crore in Q2FY21.
• H1FY2021-22
  • Income was up 31% at INR 439.7 crore as compared to INR 334.6 crore in H1FY21.
  • EBITDA was up 60% at INR 62.2 crore as compared to INR 39.0 crore in H1FY21.
  • EBITDA margin expanded by 250 basis points to 14.2% compared to 11.7% in H1FY21.
  • PAT was up 42% at INR 28.2 crore as compared to INR 19.9 crore in H1FY21.

“We are happy to deliver an overall good quarter. Our key tenet has been to manufacture high performance specialty chemicals that stand the test of time and quality, which instils huge confidence in our global customer base. Our efficiency and operational focus helps us in delivering reliable product quality.” said Mr. Ch. Krishna Murthy, CMD, Vishnu Chemicals Limited.

“Across the world, our customers are looking at pricing from the point of view of end user demand, consistent supply and to mitigate shipping delays. We take a lot of learning and confidence from our performance and are positive about execution in the second half of this fiscal.” said Mr. Ch. Siddartha, JMD, Vishnu Chemicals Limited.

Result PDF