Jubilant Ingrevia – Q4 and Fy22 Results

18 May 2022

Particulars1 Q41FY212 Q41FY22 YoY(%) FY211 FY22 YoY(%)
Total Revenue from Operations 1,078 1,296 20% 3,491 4,949 62%
EBITDA 203 152 (25%) 627 863 38%
EBITDA Margin 18.8% 11.7%   18% 17%  
Profit After Tax 95 69 (28%) 316 477 51%
PAT Margin 8.8% 5.3%   9% 10%  
PAT Margin 7.4% 8.3% -090 bps 8.6% 5.1% +350 bps
EPS - Face Value Re. 1 (Rs.) 6.0 4.3 (28%) 19.9 30.0 51%
*Financial numbers for comparative periods are presented on Pro-forma basis to reflect continuing operations pre and post demerger as explained in Note 2in the disclaimer.
 
The Board of Jubilant Ingrevia Limitedmet today to approve financial results for the quarter&Financial Yearended March31st, 2022.The Board also declared a final dividend of Rs 2.5 per equity share of Rs 1 each on the paid up capital of the company. Including Interim Dividend declared earlier during the Financial Year, the total dividend for FY’22 works out to be 500% i.eRs 5.0 Per equity share of Rs 1 each.

Commenting on the Company’s performance, Mr. Shyam S Bhartia, Chairman and Mr. Hari S Bhartia, Co-Chairman, Jubilant Ingrevia Limited said:

“We are pleased to announce that we delivered record financial performance during FY’2022 despite facing severe second wave of pandemic at beginning of the year and then headwinds and volatility in key input raw material and energy prices since last three quarters.We also maintained steady growth in Q4’FY22.

In our Specialty Chemicals segment we delivered strong growth led by healthy demand across industry segment. We are also pleased to share that we successfully commissioned Phase-1 of Diketene and Derivatives manufacturing unit at our Gajraula facility.

In Nutrition & Health Solution we improved our profitability due to higher price realization and improved volume in North America.

In Chemical Intermediates Segment, we continued the higher sales with Pharmaceutical and Agrochemical customers and recorded healthy growth in the EU. Though profitability of the Acetyls business during Q4 was impacted due to sharp and consistent correction in Acetic Acid prices impacting our inventory, the overall impact of Acetic Acid price on profitability for full year FY’22 was not significant.

Our business team continue to work closely with customers to ensure that the increase in input cost is passed on quickly and our supply chain team ensures the uninterrupted supplies and timely deliveries.

Due to advancement in our new product pipelines & CDMO projects, we are pleased to revise our investment plan for growth projects to Rs. 2050 Crore, out of this we have already committed investment in projects worth Rs. 800 Crore till date and now we plan to invest about Rs.1,250 Crore. to be committed between FY’23 & FY’24. These investments will be funded through internal accruals and all these new facilities should be ready for operations by FY’25.

We are also glad to share that the Board has recommended a final dividend of 250% i.e.  Rs 2.5 per equity share of face value of Re 1 each for the FY’22. This shall result in cash outflow of Rs 39.8 Crore.  During the year company has already declared an interim dividend of 250% i.e. Rs. 2.5 per equity share of Rs 1 each and the total dividend for FY’22 works out to be 500% i.eRs 5.0 Per equity share of Rs 1 each amounting to Rs 79.6 Crore of Cash outflow.

We remain fully committed towards the growth aspirations envisioned for the company, and are excited to realise the emerging opportunities going forward in our business segments”.


Q4’FY22 Highlights

A. Consolidated
 
Particulars1 Q41FY212 Q41FY22 YoY(%)
Revenue      
Speciality Chemicals 329 444 35%
Nutrition & Health Solutions 199 206 3%
Chemical Intermediates 549 646 18%
Total Revenue from Operations 1,078 1,296 20%
Reported EBITDA 203 152 (25%)
Speciality Chemicals 69 81 17%
Nutrition & Health Solutions 43 50 18%
Chemical Intermediates 105 30 (72%)
Unallocated Corporate (Epenses)/Income -14 -10 (33%)
PAT 95 69 (28%)
EPS 6.0 4.3 (28%)
Reported EBITDA Margins 18.8% 11.7%  
Speciality Chemicals 21.1% 18.2%  
Nutrition & Health Solutions 21.4% 24.4%  
Chemical Intermediates 19.1% 4.6%  
Speciality Chemicals 69 81 17%
Nutrition & Health Solutions 43 50 18%
Net Margin 8.8% 5.3%  
 
  • Revenue grew by 20% on YoY basis, driven by growth in Speciality Chemicals and Chemical intermediate product segments.
  • Speciality Chemicals revenue grew by 35% YoY driven by volume growth across products
  • Nutrition and Health Solutions business improved the prices in challenging market conditions during the quarter.
  • Chemical Intermediates revenue grew by 18% YoY, driven by higher prices of products
  • EBITDA at Rs 152 Crore is lower, mainly due to impact of Acetic acid prices on our inventory, while sharp increase in key input prices for Speciality Chemicals and Nutrition & Health Solutions segment were passed on partially till end of quarter.However overall impact of Acetic Acid price on profitability for full year FY’22 was not significant.
  • PAT declined by 28% YoY driven by decline in EBITDA, as explained above.
  • ROCE for FY22 improved to 27.8% as against 20.2% in FY21.
  • ROE during FY22 stood at 21.9% as against 16.4% in FY21.


Segment Wise Analysis

B. Speciality Chemicals
 
Particulars1 Q41FY212 Q41FY22 YoY(%)
Revenue 329 444 35%
Reported EBITDA 69 81 17%
Reported EBITDA Margin (%) 21.1% 18.2%  
 
  • Specialty Chemicals revenue grew by 35% on YoY basis driven by higher volume across product segments
  • Share of revenue to customers having Agro Chemical end use grew to 37% of Revenue from 28% earlier registering a growth of 81% YoY
  • Revenue from Nutrition end use also improved during the quarter
  • EBITDA increased by 17% on YoY basis, and EBITDA Margin decreased to 18.2% vs 21.1% in Q4’FY21, mainly driven by higher input costs which we are in the process of passing on.


C. Nutrition & Health Solutions
 
Particulars1 Q41FY212 Q41FY22 YoY(%)
Revenue 199 206 3%
Reported EBITDA 43 50 18%
Reported EBITDA Margin (%) 21.4% 24.4%  
 
  • Growth of Nutritional Business was driven by higher prices.
  • Revenue share from North America increased to 19% as against 14% last year
  • Food and cosmetics volumes grew significantly
  • EBITDA grew by 18% on YoY basis. EBIDTA margin improved to 24.4% vs 21.4% in Q4’FY21.
  • EBITDA margin was higher by 308 basis points on account of improved realisation.


D. Chemical Intermediates Segment
 
Particulars1 Q41FY212 Q41FY22 YoY(%)
Revenue 549 646 18%
Reported EBITDA 105 30 (72%)
Reported EBITDA Margin (%) 19.1% 4.6%  
 
  • Chemical Intermediates revenue grew by 18% on YoY basis
  • Chemical Intermediates revenue growth was driven by higher prices of Ethyl Acetate and Acetic Anhydride. Driven by higher price of feed stock
  • Revenue from Europe, Japan have gone up significantly on YoY basis
  • EBITDA was lower due to impact of Acetic Acid prices on our inventory, however overall impact of Acetic Acid price on profitability for full year FY’22 was not significant.
  • EBIDTA Margin stood at 4.6%.


FY22 Highlights

E. Consolidated
 
Particulars1 FY212 FY22 YoY(%)
Revenue      
Speciality Chemicals 1,124 1,393 24%
Nutrition & Health Solutions 630 767 22%
Chemical Intermediates 1,738 2,789 61%
Total Revenue from Operations 3,491 4,949 42%
Reported EBITDA 627 863 38%
Speciality Chemicals 268 312 16%
Nutrition & Health Solutions 130 164 26%
Chemical Intermediates 236 417 77%
Unallocated Corporate (Epenses)/Income -8 -30 278%
PAT 316 477 51%
EPS 19.9 30.0 51%
Reported EBITDA Margins 17.9% 17.4%  
Speciality Chemicals 23.9% 22.4%  
Nutrition & Health Solutions 20.7% 21.4%  
Chemical Intermediates 13.6% 14.9%  
Net Margin 9.1% 9.6%  
 
  • Revenue grew by 42% on YoY basis, driven by growth across Business segments.
  • Speciality Chemicals revenue grew by 24% YoY driven by volume and price growth across products.
    • Speciality Chemical Volume grew by 16% on YoY basis.
  • Nutrition and Health Solutions revenue grew by 22% YoY driven by higher volumes and as well as higher prices.
    • Niacinamide volume grew by 9% on YoY basis.
  • Chemical Intermediates revenue grew by 61% YoY, overall driven by higher prices and favorable market conditions, during the majority part of the financial year.
    • Acetic Anhydride Volume grew by 3% on YoY basis.
  • EBITDA at Rs 863 Crore, grew by 38% on account of strong performance of all the three product segments.
  • PAT grew by 51% YoY driven by growth in EBITDA, aided by reduction in finance cost on account of reduction in Debt and optimization of Interest rates.
  • ROCE in FY22 improved to 27.8 % against 20.2% in FY21
  • ROE in FY22 stood at 21.9% as against 16.4% in FY21.


Segment Wise Analysis

F. Speciality Chemicals
 
Particulars1 FY212 FY22 YoY(%)
Revenue 1,124 1,393 24%
Reported EBITDA 268 312 16%
Reported EBITDA Margin (%) 23.9% 22.4%  
 
  • Specialty Chemicals revenue grew by 24% on YoY basis driven by higher volume across products and new launches.
  • Domestic revenue grew significantly, by 35% percentage share to total revenue increased to 32% from 27% during previous year
  • Revenue in North American region increased by 36% on YoY.
  • Revenue from customers having Nutrition, consumer and Industrial end-use grew significantly on YoY basis.
  • EBITDA grew by 16% YoY.
  • EBITDA Margin were at 22.4% vs 23.9% in FY21, impacted due to higher raw material prices and increase in other input costs.


G. Nutrition & Health Solutions
 
Particulars1 Q41FY212 Q41FY22 YoY(%)
Revenue 630 767 22%
Reported EBITDA 130 164 26%
Reported EBITDA Margin (%) 20.7% 21.4% -
 
  • Nutrition and Health Solutions revenue grew by 22% on YoY basis.
  • Growth of Vitamin Business was driven by higher volumes and improved prices.
  • Animal Nutrition and Health solution business also improved volumes and realization YOY.
  • Revenue in North America and EU grew significantly by 78% and 65% respectively.
  • Food and cosmetics revenue has gone up significantly with 48% and 56% respectively.
  • EBITDA grew by 26% on YoY basis. EBIDTA Margin stood at 21.4%, EBITDA improved on account of better realization and higher volumes.

    
H.    Chemical Intermediates Segment
 
Particulars1 Q41FY212 Q41FY22 YoY(%)
Revenue 1,738 2,789 61%
Reported EBITDA 236 417 77%
Reported EBITDA Margin (%) 13.6% 14.9%  
 
  • Chemical Intermediates revenue grew by 61% on YoY basis
  • Chemical Intermediates revenue growth was driven by higher prices and volume growth in Acetic Anhydride.
  • Prices improvement was mainly on account of favorable market condition.
  • Revenue from sales in EU region have gone up significantly by 130% on YoY basis.
  • Share of sales from EU increased to 15% from 11% in FY21
  • EBITDA grew by 77%. Margin stood at 14.9%. Growth in EBITDA margin was driven by
  • Improved product contribution driven by favorable market conditions of Acetic Anhydride.
  • Improved pricing of Ethyl Acetate also contributed to margin expansion.


I. Business Outlook& Growth Capex Plans
 
  • All the ongoing growth related capital investment projects are more or less on track. Out of announced growth investment plan,capex worth Rs. 800 crore has been committed so far. All plants with-in this committed investment will be completed and commissioned by FY24, and has a potential of incremental peak revenue of Rs. 1,750 Crore at current prices.
  • The growth plans have been reviewed and additional growth capital investmentsamounting to Rs 1250 crore are to be committed during FY23 & FY24 to expand our newly added chemistry platforms like Diketene and Agro Actives and further strengthen the leadership in chosen areas of product portfolios including CDMO projects. In addition, we also plan to enter into Fluorinated derivatives, Fungicides (Agro Actives) and Grain based Specialty Ethanol as new business platforms. Planned completion and commissioning of all these new plants is expected by FY25, and these plants have a potential to bring incremental peak revenue of Rs 2,750 Crore at current prices.
  • Estimated Cash Outflow for FY’23 will be around Rs.550 Cr and for FY’24 & FY’25 will be Rs.650 Cr. &Rs.600 Cr. respectively. These capex cash out flow are intended to be funded through internal accruals along with reduction in debt.
  • Post completionof this overall growth related capital investments of total Rs. 2,050 Crore, at their optimum utilization the company is aspiring to achieve overall annual revenue of Rs 9,500+ Crore, this will also improve Revenue mix of Specialty and Nutrition segments and others to 65% from 46% in FY22, which is going to be the key driver for overall margin improvements of Jubilant Ingrevia Ltd.

J. Debt Position – As on 31st March, 2022
 
Particulars1 31-Mar-21 31-Mar-22
Long Term Borrowings 548 100
Short Term Borrowings - 129
Total Gross Debt 548 229
Cash & Equivalent 117 49
Total Net Debt 431 181
YoY Change - -58%
 
  • Gross Debt reduction by Rs 319 Crore and Net Debt reduction by Rs 251 Crore from 31st March 2021.
  • Net Debt to EBITDA as on 31st March, 2022 stands at 0.21 times, from the earlier level of 0.69 times as on 31st March, 2021.
  • Closing blended interest rate in Q4'FY22 was 5.73%, as against 7.01 % in Q4’FY21
  • CRISIL Ratings has revised its outlook on the long-term Debt of Jubilant Ingrevia Ltd to now ‘Positive’ from earlier ‘Stable’, while reaffirming the rating at ‘CRISIL AA’ in May’22.


K. Balance Sheet – Key Parameters/Ratios (Pro-Forma2)
 
Particulars 31-Mar-212 31-Mar-22
RoCE 20.2% 27.8%
Short Term Borrowings 16.4% 21.9%
Asset Turnover 2.0x 2.8x
Return On Asset 9.4% 13.3%
Net Working Capital (Rs Crore) 524 802
No Of Days of Working Capital 55 59
Working Capital % to Annualised Turnover 15.0% 16.2%
 
  • Balance Sheet Ratios strengthened on improved performance:
    • RoCE improved significantly to 27.8% in FY22
    • RoE improved at 21.9% in FY22
    • Asset to Turnover increased to 2.8x in FY22
  • Increase in Net Working Capital is primarily driven by higher revenue and higher raw material prices.


L. Income Statement – Q4&FY22
 
Particulars1 Q41FY212 Q41FY22 YoY(%) FY212 FY22 YoY(%)
Total Revenue from Operations 1,078 1,296 20% 3,491 4,949 42%
Speciality Chemicals 329 444 35% 1,124 1,393 24%
Nutrition & Health Solutions 199 206 3% 630 767 22%
Chemical Intermediates 549 646 18% 1,738 2.789 61%
Total Expenditure 878 1,153 31% 3,075 4,118 34%
Other Income 3 9 199% 15 31  
Segment EBITDA            
Speciality Chemicals 69 81 17% 268 312 16%
Nutrition & Health Solutions 43 50 18% 130 164 26%
Chemical Intermediates 105 30 (72%) 236 417 77%
Unallocated Corporate (Expenses)/Income -14 -10 33% -8 -30 (278%)
Reported EBITDA 203 152 (25%) 627 863 38%
Depreciation and Amortization 32 31 (5%) 125 123 (1%)
Finance Cost 12.0 6 (49%) 71 31 (56%)
Profit / (Loss) from Associates   0 0%   0  
Profit before Tax (Before Exceptional Items) 158 115 (28%) 431 709  
Exceptional Items 13   (100%) 13   (100%)
Profit before Tax (After Exceptional Items) 145 115 (21%) 418 709 69%
Tax Expenses (Net) 50 46 (8%) 102 232 127%
PAT 95 69 (28%) 316 477 51%
EPS - Face Value Re. 1(Rs.) 6.0 4.3 (28%) 19.9 30.0 51%
Segment EBITDA Margins            
Speciality Chemicals 21.1% 18.2%   23.9% 22.4%  
Nutrition & Health Solutions 21.4% 24.4%   20.7% 21.4%  
Chemical Intermediates 19.1% 4.6%   13.6% 14.9%  
Reported EBITDA Margin 18.8% 11.7%   17.9% 17.4%  
Net Margin 8.8% 5.3%   9.1% 9.6%  
 
  • All figures are in Rs Crore unless otherwise stated
  • Q4 & FY21 is derived on Pro-forma basis by combining reported discontinued operation results of LSI segment of Jubilant Pharmova Limited and audited results of company as explained in Note 2
  • EPS has been computed on combined profits assuming existence of share capital for full year.

 

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