Fineotex Chemical conducted the conference call for Q4 FY22 today at 11:00 AM
Here are the key concall highlights
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Here are the key concall highlights
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Business Updates:
โข New facility in Ambernath will be much favorable for FCL for fulfilling upcoming demand.
โข Additional 21K MTPA added in Ambernath facility due to increasing demand with 17cr spend internally.
โข Q4 growth mainly came from increasing volume sales.
โข New facility in Ambernath will be much favorable for FCL for fulfilling upcoming demand.
โข Additional 21K MTPA added in Ambernath facility due to increasing demand with 17cr spend internally.
โข Q4 growth mainly came from increasing volume sales.
Industry:
โข Textile segment is seasonal market, however on annual basis the segment has shown good growth
โข While Cleaning segment demand is picking up and is expected to grow much faster pace than textile.
Usually cleaning segment report higher revenue in summer than winter.
โข Textile segment is seasonal market, however on annual basis the segment has shown good growth
โข While Cleaning segment demand is picking up and is expected to grow much faster pace than textile.
Usually cleaning segment report higher revenue in summer than winter.
Textile:
โข 25,000 crore is the market size where FCL is targeting with majority market is controlled by European customer. While on finishing side the market size around 12-15,000 cr market size.
Competitor: Atul, Pidilite, Rezel Chemical (Pvt Player) in south India
โข 25,000 crore is the market size where FCL is targeting with majority market is controlled by European customer. While on finishing side the market size around 12-15,000 cr market size.
Competitor: Atul, Pidilite, Rezel Chemical (Pvt Player) in south India
Business Segment:
โข Cleaning & Hygiene segment is reaching to 30-40% of the revenue. This segment is expected to deliver higher gwth,
โข In textile, FCL is looking for to finished product & even entire value chain product. These process if around ~3% of the cost of the company.
โข Cleaning & Hygiene segment is reaching to 30-40% of the revenue. This segment is expected to deliver higher gwth,
โข In textile, FCL is looking for to finished product & even entire value chain product. These process if around ~3% of the cost of the company.
Ambernath Facility:
โข The facility has better place of technology, like bigger reactors line, operational efficient & fungible capacity, which will yield higher margins for company.
โข The facility has better place of technology, like bigger reactors line, operational efficient & fungible capacity, which will yield higher margins for company.
Margins:
โข On YoY margins of company are in line with mgmt guidance.
โข QoQ margins got impacted due to increase in Raw Material cost, which is all over at industry level. While there are also addition of new employees, of which result will be visible in coming quarter.
โข On YoY margins of company are in line with mgmt guidance.
โข QoQ margins got impacted due to increase in Raw Material cost, which is all over at industry level. While there are also addition of new employees, of which result will be visible in coming quarter.
Certification:
โข Blue sign certification:It takes 6 month+ for certification. Only 2-3 players in India has these certification. (Jay Chemical, Bodal Chemical in India has these certification.
โข Healthguard certification helps to sell to institution
โข Blue sign certification:It takes 6 month+ for certification. Only 2-3 players in India has these certification. (Jay Chemical, Bodal Chemical in India has these certification.
โข Healthguard certification helps to sell to institution
โข Eco passport: European certification, which is helped co. to sell reputed textile player like (H&M, Zara)
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