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Petrochemical firm DCW announced Q2FY23 results:
- Q2FY23 & H1FY23:
- Revenue from operations for H1FY23 stood at Rs 14,664.3 million, delivering growth of 34.2% on a YoY. Improved operational efficiency of the SIOP plant, coupled with favourable market conditions in Soda ash and Caustic Soda, led to robust performance in H1FY23.
- EBITDA for H1FY23 stood at Rs 2,346.9 million, compared to Rs 1,403.0 million in H1FY22, delivering growth of 67.3% YoY. PVC prices have fallen significantly over the last two quarters. However, the company’s diversified portfolio, with the critical components of Specialty chemicals, mitigated the volatility and delivered stable margins for Q2FY23.
- PAT stood at Rs 1,084.1 million in H1FY23, compared to a profit of Rs 330.4 million in H1FY22, delivering growth of 228.1% YoY.
Commenting on the results, Mr. Vivek Jain, Managing Director, DCW Ltd., said, "The Company's performance in H1FY23 is testimony to our long-drawn strategy of diversifying our product portfolio in a manner which provides resilience as well take advantage during favourable market conditions. As we have witnessed over the past several quarters, CPVC and SIOP performance has been relatively resilient and are contributing 25-30% in overall EBITDA on a steady state basis. Once we optimise our SIOP plants, the contribution from SIOP will further improve, bringing more consistency and stability to our earnings. The commodity segment business remains aligned with market conditions. In H1FY23, the Company saw a remarkable performance from Soda Ash and Caustic Soda with PVC remaining soft.
With the strategy of making our operations more efficient and the balance sheet more robust, the Company refinanced its high interest-bearing NCDs with market-aligned finance from leading bankers. This is expected to save our interest costs and cash outflows significantly. We believe our debt remains appropriate, with Net Debt to EBITDA expected to go down to levels of 1 by the end of this fiscal. We continue to look for an opportunity to utilise our in-house chlorine for various purposes. We are at an exciting crossroads for a long, sustained growth journey. We continue to endeavour a roadmap to create new highs going forward.”
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