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  • 20 Oct 2022
  • ICICIdirect Research

NAVIN FLUORINE REPORTS Q2FY23 NUMBERS

NAVINFLUOR - 3755 Change: -12.50 (-0.33 %)

News:

 Navin Fluorine reported topline growth of 23.7% YoY to Rs 419.2 crore (vs. I-direct estimate: Rs 472 crore), led by decent performance from all segments except CDMO. The revenue from CDMO was down 53% YoY to Rs 39 crore while the same from specialty chemical increased 45 % YoY to Rs 177 crore. The revenue from high performance project (Inorganic Fluorides & Refrigerants) was at Rs 211 crore (up 76 % YoY). OPM for the quarter declined 260 bps YoY to 22.4% resulting in EBITDA growth of 11% YoY to Rs 93.8 crore against our estimates of Rs123.9 crore. The contraction in operational performance is on account of increase in other expenses, mostly power and fuel. Other expenses were at Rs 84.6 crore, which is 20.2% of total revenue. PAT was down 9% YoY to Rs 57.8 crore against our estimate of Rs 92.1 crore. Finance cost was Rs 4 crore as consolidated long-term borrowings was at Rs 500 crore on September 30, 2022 vs. Rs 100 crore on March 31,2022. Depreciation was increased by 49% YoY to Rs 17.7 crore.

View:

 CDMO segment has been impacted in H1FY23 largely due issues in global market. Further with cGMP3 plant expansion to be commissioned in Q3FY23 and plans for preparing business case for cGMP4, we expect CRAMS to rebound in H2. We expect high value business to sustain in the long term.

Impact:

Negative.