News: Vinati Organics reported top-line de-growth of 14.9% YoY to Rs431 crore. Gross margins increased by 206 bps YoY while sequentially it de-grew by 270 bps to 47.6%. EBITDA margins for the quarter increased by 56 bps to 25.3%. Absolute EBITDA came at ₹109 crore down by 16.8% YoY. PAT stood at ₹83.2 crore.
Views: We believe Vinati Organics FY24 numbers, as guided by management, to be in-line with FY23 as company has witnessed a good demand for ATBS products in H2FY23 and expects to remained subdued in FY24. Further, Company expects long term outlook on the ATBS to remain strong. Moreover, revenue potential from the subsidiary Veeral Organics which is expected to manufacture new products like MEHQ, Guaiacol etc is ₹300 crore. Subsidiary is expected to get commercialise in March 2024.
ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.I-Sec is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990.. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The information mentioned herein above is only for consumption by the client and such material should not be redistributed.
The information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities Limited. The contents of this mail are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. While due care has been taken in preparing this mail, I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any inaccurate, delayed or incomplete information nor for any actions taken in reliance thereon. This mail is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject I-Sec and affiliates to any registration or licensing requirement within such jurisdiction