Sudarshan Chemical- The focus pigment player has their conducted their concall today at 11:00 am.
Here are the key highlights 😃
Here are the key highlights 😃
About Company:
• Surdarshan is in color goldflask.
• Co. has 2 goldflask site. One in Roha which is scalable and dedicated R&D site on outskirt of Pune.
• Co. has 50-60+ Channel partner, 50-60 sales people with 2000 workforce.
• Focus on colors and pigment.
• Surdarshan is in color goldflask.
• Co. has 2 goldflask site. One in Roha which is scalable and dedicated R&D site on outskirt of Pune.
• Co. has 50-60+ Channel partner, 50-60 sales people with 2000 workforce.
• Focus on colors and pigment.
Business Updates:
• Global reach in 85+ countries.
• Latest addition of sub subsidiary- Sudarshan Japan.
• Domestic Market Share is 35%.
• Renewable Energy now stands at 20% which was 0% past 10 years.
• Global reach in 85+ countries.
• Latest addition of sub subsidiary- Sudarshan Japan.
• Domestic Market Share is 35%.
• Renewable Energy now stands at 20% which was 0% past 10 years.
Industry & Covid Impact:
• Co. has global market opportunity of 8.6Bill $.
• Plastic has seen low impact on covid.
• Packing has also seen low impact with good recovery.
• Paint / Coatings was impacted due to covid.
• Supply Chain was hampered and RM prices increased.
• Co. has global market opportunity of 8.6Bill $.
• Plastic has seen low impact on covid.
• Packing has also seen low impact with good recovery.
• Paint / Coatings was impacted due to covid.
• Supply Chain was hampered and RM prices increased.
Pigment: Performance mentioned in image.
• Business improved 10% YoY.
• Export sales improved 14% and is expected to increase in the coming year as well.
• Business improved 10% YoY.
• Export sales improved 14% and is expected to increase in the coming year as well.
Specialty: Performance in image
• Specialty segment contributes 69% of sales. Rest by non-specialty.
• Major CAPEX is on Specialty, hence post capex this segment is expected to grow more; leading to increase in margin.
• Specialty segment contributes 69% of sales. Rest by non-specialty.
• Major CAPEX is on Specialty, hence post capex this segment is expected to grow more; leading to increase in margin.
Raw Material:
• There was increase in price of RM in all the product basket.
• While certain Acetic Acid, Urea based RM has steep rise in market.
• Sourcing from China has not decrease for Sudarshan.
• There was increase in price of RM in all the product basket.
• While certain Acetic Acid, Urea based RM has steep rise in market.
• Sourcing from China has not decrease for Sudarshan.
Margins Profile
• Some of the increased RM prices are passed to certain customer in March. Rest will be passed this quarter.
• Coal rate has grown up, while shipment cost also has gone up this quarter.
• Some of the increased RM prices are passed to certain customer in March. Rest will be passed this quarter.
• Coal rate has grown up, while shipment cost also has gone up this quarter.
Competitive:
• Company has international sales team o board, while Sudarshan has R&D facility which differentiates co. from other Asian players, which lead to decrease in margin but has long term benefit.
• Company has international sales team o board, while Sudarshan has R&D facility which differentiates co. from other Asian players, which lead to decrease in margin but has long term benefit.
CAPEX:
• None of the capex were canceled.
• 293 cr is put in use and 269 is in CWIP. Timeline of CAPEX mentioned in image.
• With specialty product coming up, margins are expected to be increased.
• New expansion now would be there on backward integration.- via Brown field.
• None of the capex were canceled.
• 293 cr is put in use and 269 is in CWIP. Timeline of CAPEX mentioned in image.
• With specialty product coming up, margins are expected to be increased.
• New expansion now would be there on backward integration.- via Brown field.
• FY 22: Out of 600 cr CAPEX 307cr will be there this year, out of which 269 cr is done till now and rest will done in coming quarter.
• There is separate CAPEX of 135 cr announced previously which is for the infrastructure purpose.
• Maintenance CAPEX till now was: 30-35cr
• There is separate CAPEX of 135 cr announced previously which is for the infrastructure purpose.
• Maintenance CAPEX till now was: 30-35cr
New Product:
• New product has good launch till now. However major launch will be in Q2 this year.
• Investment in new product is done. Co. now focus on introducing cost leadership- which is for backward integration.
• New product has good launch till now. However major launch will be in Q2 this year.
• Investment in new product is done. Co. now focus on introducing cost leadership- which is for backward integration.
Capacity Utlization:
• Currently is around 86%. This can go till 90% as well but major growth from capex side of revenue.
Net Debt:
• Net debt as of March 2021 was 641 cr. Co is looking for reducing its debt as well.
• Currently is around 86%. This can go till 90% as well but major growth from capex side of revenue.
Net Debt:
• Net debt as of March 2021 was 641 cr. Co is looking for reducing its debt as well.
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