Jubilant Ingrevia Limited Q1FY23 Financial Results

07 Aug 2022

Particukars1 Q1'FY22 Q1'FY23 YoY(%)
Total Revenue from Operations 1,145 1,166 2%
EBITDA 287 151 (47%)
EBITDA Margin 25.1% 12.9%  
Profit After Tax 168 79 (53%)
PAT Margin 14.7% 6.8%  
EPS - Face Value Re. 1(Rs.) 10.6 5.0 53%
 
The Board of Jubilant Ingrevia Limitedmet today to approve financial results for the quarterended June30th, 2022.
 

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

“We are glad to announce steady operational and financial performance in Q1’FY23, in the backdrop of inflationary headwinds leading to higher raw material and energy costs during the quarter.

In our Specialty Chemicals Business revenue grew 26% YoY, on account of strong demand across all our product segments. We witnessed significant increase in input costs Including energy costs, which was passed on partially during the quarter, impacting segment’s EBITDA margin.

In our Nutrition & Health Solution Business, Niacinamide sales volume were significantly impacted due to spread of Avian and Swine Flu in EU and US regions leading to lower segment revenue and EBIDTA, however the price realization was better during the quarter. This is a short-term challenge in the segment, and business continues to maintain its market share and leadership position.  

Our Chemical Intermediates Business, continue to witness strong demand resulting into volume growth. Business is maintaining the leadership position of Acetic Anhydride in Domestic market and also Improving our market share in Europe. On YoY basis segment has witnessed normalization of market situation and lower Acetic Acid prices, which is also reflecting into both Revenue and EBITDA.

We are fully committed towards our growth aspirations and we are excited to realise the emerging opportunities going forward in all our business segments. We are fully confident of moving ahead with our well defined growth capex plan, which is supported by our internal accruals. Our aim is to achieve sustainable profitable growth in medium term and structurally we are poised towards moving on to the next tier of performance in our growth journey and margins”.



Q1’FY23 Highlights


A. Consolidated
 
Particukars1 Q1' FY22 Q1'FY23 YoY(%)
Revenue      
Specuality Chemicals 305 382 26%
Nutrition & Health Solucations 167 150 (10%)
Chemical Intermediates 673 633 (6%)
Total Revenue from Operations 1,145 1,166 2%
Reported EBITDA 287 151 (47%)
Specuality Chemicals 84 64 (24%)
Nutrition & Health Solucations 27 19 (29%)
Chemical Intermediates 184 76 (58%)
Unallocated Corporate (Expenses)\Income -7 -8 -
PAT 168 79 (53%)
EPS 10.6 5.0 (53%)
Reported EBITDA Margins 25.1% 12.9%  
Specuality Chemicals 27.7% 16.8%  
Nutrition & Health Solucations 15.9% 12.5%  
Chemical Intermediates 27.3% 12.1%  
Net Margin 14.7% 6.8%  
 
  • Overall Revenue grew by 2% on YoY basis, mainly due to higher sales performance by Speciality Chemical Business.
  • Speciality Chemicals revenue grew by 26% YoY driven by volume growth across product segments
  • Nutrition and Health Solutions business performance was impacted mainly due to spreading of Bird & Swine Flu in EU & US region resulting into lower demand. This is a short-term challenge in the segment, and business continues to maintain its market share and leadership position.
  • Chemical Intermediates volume have grown while revenue is impacted mainly due to lower prices of key RM i.e. Acetic Acid.
  • EBITDA at Rs 151 Crore is lower by 47%, mainly due to Chemical Intermediate EBITDA normalization. Nutrition Margins were impacted due to lower sale, while Speciality Margins were impacted due to higher input costs which were passed on partially.
  • PAT declined by 53% YoY driven by lower EBITDA, as explained above.
  • ROCE for the quarter stood at 20.8% as against 27.8% in FY22 on TTM Basis
  • ROE during the quarter stood at 15.7% as against 21.9% in ’FY22 on TTM basis


Segment Wise Analysis


B. Speciality Chemicals
 
Particukars1 Q1'FY22 Q1'FY23 YoY(%)
Revenue 305 382 (26%)
Reported EBITDA 84 64 (24%)
Reported EBITDA Margin (%) 27.7% 16.8%  
 
  • Specialty Chemicals revenue grew by 26% on YoY basis driven by higher volume across product segments
  • Specialty Volumes grew by 24% YOY basis
  • Share of revenue to customers having Agro Chemical end use grew significantly.
  • We also witnessed healthy demand for Oil field chemicals.
  • Segment EBITDA & Margin was lower mainly due to unprecedented and sharp increase in input costs including energy cost, which was passed on partially during the quarter.


C.Nutrition & Health Solutions
 
Particukars1 Q1'FY22 Q1'FY23 YoY(%)
Revenue 167 150 (10%)
Reported EBITDA 27 19 (29%)
Reported EBITDA Margin (%) 15.9% 12.5%  
 
  • Nutritional Business sales was impacted mainly due to spread of Bird Flu and Swine Flu in Europe US region, coupled with lower consumption in China due to Covid related lock down situation.
  • Niacinamide volumes were down by 39% YOY basis.
  • EBITDA de-grew by 29% on YoY basis and EBIDTA margin decreased to 12.5 % vs 15.9% in Q1’FY22 mainly due to lower volume, while price realization has been better.


D. Chemical Intermediates Segment
 
Particukars1 Q1'FY22 Q1'FY23 YoY(%)
Revenue 673 633 (6%)
Reported EBITDA 184 76 (58%)
Reported EBITDA Margin (%) 27.3% 12.1%  
 
  • Chemical Intermediates business continue to witness strong demand resulting into robust volume growth.
  • Acetic Anhydride volumes grew by 22% on YOY basis.
  • Segment revenue de-grew by 6% on YoY basis mainly due to lower input price i.e Acetic Acid price which is now stabilizing.
  • Revenue from Europe & Japan have gone up significantly on YoY basis.
  • On YoY basis segment has witnessed normalized market situation as well as lower Acetic Acid prices, which is also reflecting into both Revenue as well as EBITDA


E. Business Outlook& Growth Capex Plans
 
  • We expect overall healthy revenue growth during FY’23, led by volume growth in Specialty Chemicals & Chemical intermediate business segment. Commissioning of our three new capex of CDMO GMP, CDMO non-GMP and Acetic Anhydride is likely to aid the revenue growth.
  • In the Nutrition & Health Solution segment Niacinamide demand is expected to start normalizing in the later part of the current quarter
  • We expect our EBIDTA of subsequent quarters of FY’23 to improve, assuming no unexpected adverse situation
  • We are fully committed towards our growth aspirations and we are excited to realise the emerging opportunities though our ongoing Growth Capex plan of Rs 2,050 Crore during FY’22 to FY’25 Period.
  • We are strategizing towards improving our revenue mix of Specialty and Nutrition segments to 65% by FY’26 from 46% in FY’22 and we believe this to be a key driver for overall margin improvements.


F. Debt Position – As on 30Th June, 2022
 
Particukars1 30-Jun-21 31-Mar-22 30-Jun-22
Long Term Borrowings 227 100 -
Short Term Borrowings 230 129 285
Total Gross Debt 457 229 285
Cash & Equivalent 70 49 57
Total Net Debt 386 181 228
YoY Change   -58% -41%
 
  • We have successfully reduced our high cost long term borrowing resulting into lower blended interest rate of 5.72% in Q1'FY23, as against 7.09 % in Q1’FY22.
  • 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.


G. Balance Sheet – Key Parameters/Ratios (TTM2)
 
Particukars1 FY22 Q1'FY232
RoCE 27.8% 20.8%
RoE 21.9% 15.7%
Asset Turnover 2.8x 2.8x
Return On Asset 13.3% 9.7%
Net Working Capital (Rs Crore) 802 889
No. of Days of Working Capital 59 65
Working Capital % to Annualised Turnover 16.2% 17.9%
 
  • Increase in Net Working Capital is driven by short term decisions to maintain higher inventory to manage uncertainty of market & supply chain.



H. Income Statement – Q1’FY23
 
Particukars1 Q1'FY22 Q1'FY23 YoY(%)
Total Revenue from Operations 1,145 1,166 2%
Specuality Chemicals 305 382 26%
Nutrition & Health Solucations 167 150 (10%)
Chemical Intermediates 673 633 (6%)
Total Exoenditure 863 1,025 19%
Other Income 6 10 69%
Segment EBITDA      
Specuality Chemicals 84 64 (24%)
Nutrition & Health Solucations 27 19 (29%)
Chemical Intermediates 184 76 (58%)
Unallocated Corporate (Expenses)\Income -7 -8 (17%)
Reported EBITDA 287 151 (47%)
Depreciation and Amortization 32 31 (1%)
Finance Cost 13 4 (68%)
Profit before Tax(After Exceptional Items) 243 116 (52%)
Tax Expenses (Net) 75 36 (52%)
PAT 168 79 (53%)
EPS - Face Value Re. 1(Rs.) 10.6 5.0 (53%)
Segment EBITDA Margins      
Specuality Chemicals 27.7% 16.8%  
Nutrition & Health Solucations 15.9% 12.5%  
Chemical Intermediates 27.3% 12.1%  
Reportes EBITDA Margin 25.1% 12.9%  
Net Margin 14.7% 6.8%  

1. All figures are in Rs Crore unless otherwise stated


 

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