Dyes & Chemicals | News & Insights

HIGHEST EVER PROFITABILITY BACKED BY STRONG OPERATING EFFICIENCY

Published: November 1, 2022
Author: DIGITAL MEDIA EXECUTIVE

Hyderabad,October 31, 2022:Vishnu Chemicals Limited (BSE: 516072, NSE: VISHNU), a leading manufacturer of high-performance specialty chemicals, hasannounced robust earnings growth for the quarter and half year ended 30thSeptember 2022.

CONSOLIDATED FINANCIAL HIGHLIGHTS

In Rs Cr Q2FY23 Q2FY22 Y-o-Y

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Q1FY22 Q-o-Q

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H1FY23 H1FY22 Y-o-Y

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FY22
Total Income 375 242 55% 361 4% 736 440 67% 1,075
EBITDA 63 35 82% 61 3% 123 62 98% 161
EBITDA Margin 16.7% 14.2% 245bps 16.7% (4) bps 16.7% 14.1% 258 bps 15.0%
PAT 35 17 111% 34 3% 69 28 145% 81
PAT Margin 9.3% 6.8% 250 bps 9.4% (5) bps 9.4% 6.4% 298 bps 7.5%
EPS in Rs. 29 14 111% 29 3% 58 24 145% 68

Consolidated Highlights

  • Vishnu Chemicals continues to report record quarterly Sales, EBITDA & PAT.
  • Consolidated domestic and exports sales continued its growth trend, growing by 57% and 53% YoY.
  • Expansion of +245 bps in EBITDA margin YoY and +250 bps in PAT margin YoY in Q2FY23.
  • Unwavering focus on manufacturing had led the company to be a global leader in terms of gross asset turnover and ROCE amidst peers. Gross asset turnover & ROCE reached highest levels of 2x & 35%+ respectively.
  • Debt to Equity reduced to 1.0 from 1.3 in FY22.
  • The company continues to improve its working capital efficiency resulting in reduction inInventory & Debtor days.
  • Board approves 1:5 stock split.

  • Highlights of Chromium Chemistry:
    • Standalone domestic and exports sales continue its growth trend, growing by 64% and 62%YoY.
    • Debottlenecking has led to capacity increase by 10,000 TPA, an increase of ~14% on our existing plate capacity.Production started from Q2FY23.
    • EBITDA generated has increased by 126% YoY and 10% QoQ.
    • Reduced D/E to 0.99 while Interest Coverage Ratio expands to 7x.
    • Standalone ROCE is at 40%+.

  • Highlights of Barium Chemistry:
    • Realistically, there are some signs of softer demand especially in Europe, partly due to the on-going geopolitical issues and the impact of higher input costs on our customer’s operations. However on the positive side, as per recent data, the energy issues seem to be subsiding in Europe with falling prices of natural gas. The company is watchful of the situation.
    • The company is focused on balancing its sales mix geographically by increasing its market share in India which would mitigate geography risk in the long term.
    • Capex: Brownfield expansion to introduce a new speciality chemical to aid Barium portfolio diversification is on track and is expected to be commissioned by H1FY24.
    • In commissioning stage: Solar power capacity under the OPEX model is on track and is expected to be completed in H2FY23.

Management Comments

“Commenting on the stellar performance, Mr. Ch. Krishna Murthy, CMD, Vishnu Chemicals Limited, said We are delighted to announce stellar growth for the second quarter in a row. Due to its diverse product and application mix, Vishnu has demonstrated resilience in the face of a challenging macro environment. In the second quarter, we continued to showcase our ability to make progress on our clear operational priorities. With our targeted investments, we will continue to drive long-term growth above market rates by providing value to our customers around the world.

.,”said

Mr. Ch. Siddartha, JMD, Vishnu Chemicals Limited, added, “I am pleased with our execution in the second quarter, as we focused on productivity for our customers in their difficult times, which has never been more important than it is today.” However, there is still a substantial amount of work to be done. Our ROCE levels and working capital efficiencies have clearly demonstrated that we are the most efficient producer in our chemistries globally, which we will continue to monitor and improve. We have industry-leading expertise, a global footprint, and well-defined priorities with plenty of room for expansion.”

 About Vishnu Chemicals Limited

Vishnu Chemicals Limited epitomises manufacturing of high-performance speciality chemicals, with strong market leadership and an intelligent symphony of forward and backward integration to produce world-class products that are focused on diverse needs and aspirations of its customers across 60+ countries.

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