Business
Economics
Finance
Industry
Profit
Specialty Chemicals
Business Updates
Export Revenue
Domestic Revenue
Product Mix
Product Realization
Value Added Chemicals
Rubber Chemicals
Lubricants
Optimum Utilization
Antidumping Duties
Price Rise
Russia-Ukraine War
Raw Material Price
Q4 Highlights
Yasho Industries conducted the conference call for Q4 FY22.
"Mgmt expect to grow 10-15% for FY23"
Here are the key concall highlights ๐งต๐
"Mgmt expect to grow 10-15% for FY23"
Here are the key concall highlights ๐งต๐
Business Updates:
โข Export revenue is 64% & domestic is 36%
โข Growth mainly came from product mix, better product realization.
โข Value Added chemicals like Rubber chemicals, Lubricants & Specialty Chemical added meaning profit for company.
โข Working at optimum utilization.
โข Export revenue is 64% & domestic is 36%
โข Growth mainly came from product mix, better product realization.
โข Value Added chemicals like Rubber chemicals, Lubricants & Specialty Chemical added meaning profit for company.
โข Working at optimum utilization.
Industry:
โข North America has placed anti-dumping duties on China. 25% higher than India (6.5% of India).
โข Prices are passed to customer after a quarter. So within quarter price rise are not passed on.
โข Russia-Ukraine war has impacted the RM price which are not passed in Q4
โข North America has placed anti-dumping duties on China. 25% higher than India (6.5% of India).
โข Prices are passed to customer after a quarter. So within quarter price rise are not passed on.
โข Russia-Ukraine war has impacted the RM price which are not passed in Q4
Revenue Mix:
- Aroma Chemical: 83cr
- Food Antioxidants: 79cr
- Rubber Chemical: 211cr
- Lubricant: 84cr
- Specialty Chemical: 152cr
โข Volume growth was 11,000 MTPA from 7,700 last year.
โข No customer holding more than 5% of revenue.
โข 2000+ active customer.
- Aroma Chemical: 83cr
- Food Antioxidants: 79cr
- Rubber Chemical: 211cr
- Lubricant: 84cr
- Specialty Chemical: 152cr
โข Volume growth was 11,000 MTPA from 7,700 last year.
โข No customer holding more than 5% of revenue.
โข 2000+ active customer.
Lubricant:
โข Change in norms globally are encouraging specialty chemicals, where Yasho is getting benefit.
โข Not big expansion has made in this segment globally.
โข Yasho supplies 80% of lubricant to non auto segment (60% to airlines)
โข Change in norms globally are encouraging specialty chemicals, where Yasho is getting benefit.
โข Not big expansion has made in this segment globally.
โข Yasho supplies 80% of lubricant to non auto segment (60% to airlines)
Rubber Chemical
โข NOCIL is the only competitor, but products are entirely different, as they are focus more on commodity, while Yasho is mainly in specialty chemical. (only 5-7 products are common)
โข Yasho will slowly expand in this segment with maintaining its margin.
โข NOCIL is the only competitor, but products are entirely different, as they are focus more on commodity, while Yasho is mainly in specialty chemical. (only 5-7 products are common)
โข Yasho will slowly expand in this segment with maintaining its margin.
Growth Strategy:
โข Increased expansion, relationship with customer and Quality maintenance & export market has helped the business.
โข Existing product has ample opportunity to grow in bigger size hence expansion will be made for existing product.
โข Increased expansion, relationship with customer and Quality maintenance & export market has helped the business.
โข Existing product has ample opportunity to grow in bigger size hence expansion will be made for existing product.
CAPEX:
โข Acquired 42 acre land in Dahej & Expansion would be added in phases
Phase 1:
- 11,500 MTPA (use around 50-55% of land) for manufacturing lubricant & rubber chemical
- Foretasted revenue 500-550cr
- CAPEX SPend: 350cr
- 240cr will be bank loan & 110 would be internally
โข Acquired 42 acre land in Dahej & Expansion would be added in phases
Phase 1:
- 11,500 MTPA (use around 50-55% of land) for manufacturing lubricant & rubber chemical
- Foretasted revenue 500-550cr
- CAPEX SPend: 350cr
- 240cr will be bank loan & 110 would be internally
Other:
โข Raw Material & Fuel Cost has been highest contributor of price rise.
โข Not received EC intimation till now.
โข Co. has 2 months inventory. Debtor days is 60 days average.
โข Working Cycle is down from 125 days to less than 100 days.
โข Raw Material & Fuel Cost has been highest contributor of price rise.
โข Not received EC intimation till now.
โข Co. has 2 months inventory. Debtor days is 60 days average.
โข Working Cycle is down from 125 days to less than 100 days.
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