- 01 Feb 2022
- ICICIdirect Research
Navin Fluorine reports better than estimated numbersNAVINFLUOR - 4665 Change: -7.65 (-0.16 %)
News: Navin Fluorine reported topline growth of 23% YoY to Rs.379 crore against our expectations of Rs.356 crore, led by speciality chemical (+25% YoY), refrigerants (+53% YoY) and Inorganic fluoride (+46% YoY). The revenue from CRAMS was down 15% YoY to Rs.60 crore due to delay in shipment, which is expected to recognise in Q4FY22. OPM for the quarter was up by 40 bps YoY to 26% resulting into EBITDA growth of 24% YoY to Rs.98.6 crore against our estimates of Rs.90.9 crore. The improvement in the operational performance is largely on account of better gross margins due to changes in the revenue mix. PAT increased 17% YoY to Rs.68.8 crore against our estimates of Rs.67.1 crore.
Views: There has been strong growth in the non-value added segments such as refrigerant and inorganic fluoride. Since both these verticals are witnessing industry tailwinds, these segments are expected to continue this growth momentum in near term. Apart from this, the company has approved debottlenecking of cGMP3 and thus, provides volume visibility for FY23. Going ahead, commencement of HPP plant along with incremental capacity for speciality chemical can likely to aid further growth. Apart from this, announcement of cGMP4 for CRAMS can improve value added portfolio revenue mix to the overall revenues.