Kiri Industries Ltd conducted there conference call today at 2:00 PM
Here are the key concall highlights.😀
Here are the key concall highlights.😀
Business Updates:
• Standalone Revenue increased 30%.
• Operating Expense is constantly look, & was down 24% QoQ o last year.
• Gross margin has been back to pre-covid level.
• Co. has been debt free, hence interest cost decreased.
• Standalone Revenue increased 30%.
• Operating Expense is constantly look, & was down 24% QoQ o last year.
• Gross margin has been back to pre-covid level.
• Co. has been debt free, hence interest cost decreased.
Dystar:
• Kiri has been awarded 481.6 Mil$ from Dystar.
• There are more 30 days for the appeal, and there are chances for appeal from Dystar as well.
• This may take around 4-8 months to get the fund. Mgmt expect Q1:FY 22.
• Tax is expected to be around 10% LTCG.
• Kiri has been awarded 481.6 Mil$ from Dystar.
• There are more 30 days for the appeal, and there are chances for appeal from Dystar as well.
• This may take around 4-8 months to get the fund. Mgmt expect Q1:FY 22.
• Tax is expected to be around 10% LTCG.
Usage of Funds (Dystar):
• Project evaluation process has been started.
• This investment would be in non-dyes and intermediates segment.
• Company expects 2-3 year from the this expansion to attain significant result.
• Project evaluation process has been started.
• This investment would be in non-dyes and intermediates segment.
• Company expects 2-3 year from the this expansion to attain significant result.
Specialty Segment:
• Company is planning for investment in technology, adding mgmt experts for entering Specialty segment.
• Expansion would be also be around in place where company can have oligopoly market.
• Company is planning for investment in technology, adding mgmt experts for entering Specialty segment.
• Expansion would be also be around in place where company can have oligopoly market.
Specialty Intermediate:
• Specialty Intermediate plan was major growth driver in this quarter.
• Phase 1 expansion (in FY21) was of 57 cr &
• Contribution of Phase 1 was 300 cr (including internal consumption).
• EBIDTA margin expected to increase 2-3%.
• Specialty Intermediate plan was major growth driver in this quarter.
• Phase 1 expansion (in FY21) was of 57 cr &
• Contribution of Phase 1 was 300 cr (including internal consumption).
• EBIDTA margin expected to increase 2-3%.
• Phase 2 is stopped currently, and is expected to be completed by the end of this year.. Land & Building already done.
• Phase 2 also expected to contribute around 300cr revenue.
• Phase 2 also expected to contribute around 300cr revenue.
Industry Outlook:
• Domestic Textile consumption was down, and export has been hampered.
• Reactive Dyes export sales of India reduced from 17,000 MTPA to 12,000 MTPA this year.
• Domestic Textile consumption was down, and export has been hampered.
• Reactive Dyes export sales of India reduced from 17,000 MTPA to 12,000 MTPA this year.
Question from @tycoonmindset05 on Textile Industry outlook:
• Textile and Yarn industry is perfectly correlated with dyes industry.
• Hence current growth in textile segment has improved the gross margins.
• Intermediates has yielded higher profit than that of dyes end product
• Textile and Yarn industry is perfectly correlated with dyes industry.
• Hence current growth in textile segment has improved the gross margins.
• Intermediates has yielded higher profit than that of dyes end product
• China's 1+ Policy and decrease in Chinese manufacturing has been driving sales to Indian companies.
• Vinyl Sulphone & H-Acid price has been decreased this quarter, due to decline in price in China.
• China's competition still persist in the industry.
• Vinyl Sulphone & H-Acid price has been decreased this quarter, due to decline in price in China.
• China's competition still persist in the industry.
Segment:
• Dye Intermediates generates higher revenue and there are few players which are backward integrated.
• For export market top 5 players contributes around 60-70% of revenue. (Kiri, Bodal, Colertex, and other chemical).
• Dye Intermediates generates higher revenue and there are few players which are backward integrated.
• For export market top 5 players contributes around 60-70% of revenue. (Kiri, Bodal, Colertex, and other chemical).
Segmental revenue:
• Dyes- 12281
• Intermediates- 14781
• Basic - 72708 Tones
Total- ~100K Tonnes
Revenue share in image.
• Dyes- 12281
• Intermediates- 14781
• Basic - 72708 Tones
Total- ~100K Tonnes
Revenue share in image.
MEIS & PLI:
• All cos are waiting for change in MEIS scheme and there have been letter sent to the government.
• Cos are waiting for the update in scheme and once it is announce, incentives would be claimed by co.
• For PLI, Kiri has been looking in API segment.
• All cos are waiting for change in MEIS scheme and there have been letter sent to the government.
• Cos are waiting for the update in scheme and once it is announce, incentives would be claimed by co.
• For PLI, Kiri has been looking in API segment.
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