Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
Manage your Savings, Demat and Trading Account conveniently at one place
News: Revenues grew 12% YoY to ₹ 1628 crore driven volume uptick in o Dyes, Pigments, and Polymer Additives but pulled down by Agrochemicals and Energy businesses. EBITDA de-grew 16% YoY to ₹ 196 crore mainly due to fall in GPM by 373 bps (37.5%) and EBITDA margins stood at 12%. PAT de-grew 44% YoY to ₹ 44 crore.
Views: The company witnessed mixed fortunes in Q2 with discretionary segments such as Dyes, Pigments, and Polymer Additives performed well with a volume growth of 22% (combined) but pain remains in non-discretionary such as Agrochem (pricing pressure) and Energy segment (Steep drop in refining margins & gasoline-naphtha delta). The management has spelled out lots of measures to improve EBITDA by resorting to cost control, volume improvement, focusing on sun-rise industries and has set the FY28 EBITDA target of ₹ 1800-2200 crore, ROCE of +15% and Debt / EBITDA of <2.5x. However, with the company is all set to miss the FY25 target and hence we need monitor the progress on deliverables.
Impact: Neutral