Gujarat Flurochemicals Ltd conducted the conference call for Q4 FY22
"Mgmt targets topline growth of 20-23% of FY23"
Here are the concall highlights
🧵👇
"Mgmt targets topline growth of 20-23% of FY23"
Here are the concall highlights
🧵👇
Business Updates:
• Company has commence the export of R142b and R125.
• Lithium ion battery chemical project is under construction and as per schedule.
• Prices are expected to be impacted as additional domestic capacity is coming up
• Loss of business was 28cr for shutdown
• Company has commence the export of R142b and R125.
• Lithium ion battery chemical project is under construction and as per schedule.
• Prices are expected to be impacted as additional domestic capacity is coming up
• Loss of business was 28cr for shutdown
Bulk Chemicals:
(Revenue Mix in Image)
• Caustic soda plant is running at full capacity (except for shut down).
• Price of caustic soda has been stabilized (Rose due to energy price)
• Prices of MDC peaked out in Q3 and have moderated in Q4, resulted decline in Chloromethanes
(Revenue Mix in Image)
• Caustic soda plant is running at full capacity (except for shut down).
• Price of caustic soda has been stabilized (Rose due to energy price)
• Prices of MDC peaked out in Q3 and have moderated in Q4, resulted decline in Chloromethanes
Fluoropolymer:
• Growth came from both rising demand, leading to increase in price of volume both.
• Demand continues to stay strong across geographies and applications.
• De-bottlenecking will take couple of months (with add on of 200-300 PTFE to be available from Q4)
• Growth came from both rising demand, leading to increase in price of volume both.
• Demand continues to stay strong across geographies and applications.
• De-bottlenecking will take couple of months (with add on of 200-300 PTFE to be available from Q4)
New Fluroropolymer:
(Revenue growth in image)
• Capacity utilization during the quarter was further dented by availability of TFE (due to planned shutdown) feedstock for Micropowders.
• Expect to reach full capacity utilization of existing capacity by end of Q1FY23.
(Revenue growth in image)
• Capacity utilization during the quarter was further dented by availability of TFE (due to planned shutdown) feedstock for Micropowders.
• Expect to reach full capacity utilization of existing capacity by end of Q1FY23.
Specialty Chemical:
(Revenue mentioned in image)
• Revenue was hampered due to fire incident is down by 38% YoY.
• Production & sales during Q4 FY 22 marginally improved
• 3 new plants are expected to be commissioned by Q1FY23. It was delayed due to supply chain issue.
(Revenue mentioned in image)
• Revenue was hampered due to fire incident is down by 38% YoY.
• Production & sales during Q4 FY 22 marginally improved
• 3 new plants are expected to be commissioned by Q1FY23. It was delayed due to supply chain issue.
Product Mix:
• Mgmt expect to export R125 of 4K-5K Tons in Fy23.
• PVDF export will depend on internal consumption. As few capex is pre-poned PVDF internal consumption will increase.
• Mgmt expect R142b export of 500Tone next year.
• New products in R&D stage for refrigerant
• Mgmt expect to export R125 of 4K-5K Tons in Fy23.
• PVDF export will depend on internal consumption. As few capex is pre-poned PVDF internal consumption will increase.
• Mgmt expect R142b export of 500Tone next year.
• New products in R&D stage for refrigerant
New Age Verticals:
• For batter chemicals, plant for LiPF6 is under construction and should be ready by end of year.
• PVDF product is already available and sampling is in progress and will be for commercial sale in 2 quarters.
• PVDF will commission next year.
• For batter chemicals, plant for LiPF6 is under construction and should be ready by end of year.
• PVDF product is already available and sampling is in progress and will be for commercial sale in 2 quarters.
• PVDF will commission next year.
Battery Chemicals:
• Mgmt is looking for long term contract.
• Plant will commission by end of year and it will take 2 quarters to stabilize the plant.
Customer Application:
- PVDF to Battery manufacturer
- Battery chemical: Company manufacturing of electrolyte in US & Europe
• Mgmt is looking for long term contract.
• Plant will commission by end of year and it will take 2 quarters to stabilize the plant.
Customer Application:
- PVDF to Battery manufacturer
- Battery chemical: Company manufacturing of electrolyte in US & Europe
Capacity:
• Price hike PTFE has been accepted by the customer (In double digit)
• Anti-dumping duties for R125 has also been announced on China
• PTFE capacity is 1550 tons per month
• New Fluoropolymers capacity is 700 tons per month which is extended to 1100 tons per month
• Price hike PTFE has been accepted by the customer (In double digit)
• Anti-dumping duties for R125 has also been announced on China
• PTFE capacity is 1550 tons per month
• New Fluoropolymers capacity is 700 tons per month which is extended to 1100 tons per month
Operational Highlights:
• Gross Flow for specialty intermediates would be 600crs post expansion.
• CAPEX of 300cr for Wind power is for GFL.
• Most of the corporate guarantees will be revoked by the end of the year.
• FKM business potential is 100Mil $.
• Gross Flow for specialty intermediates would be 600crs post expansion.
• CAPEX of 300cr for Wind power is for GFL.
• Most of the corporate guarantees will be revoked by the end of the year.
• FKM business potential is 100Mil $.
Realization:
• PFA: 35$
• FEP: 25$ but it is small compenent for company.
• LiPF: Spot at 70%$ & contract at 50$. But these are subject to change. 30$ would be reasonable price to assume.
• PFA: 35$
• FEP: 25$ but it is small compenent for company.
• LiPF: Spot at 70%$ & contract at 50$. But these are subject to change. 30$ would be reasonable price to assume.
CAPEX:
• CAPEX plan increased from 900cr to 1150cr for FY23.
Breakup:
- Specialty Chemical (Lithium Complex): 300cr
- New Fluoropolymer: 300cr
- Backward integration into PVDF & refirgerants: 250cr. - Balance on wind power and de-bottlenecking (PTFE: increase in 20% capacity).
• CAPEX plan increased from 900cr to 1150cr for FY23.
Breakup:
- Specialty Chemical (Lithium Complex): 300cr
- New Fluoropolymer: 300cr
- Backward integration into PVDF & refirgerants: 250cr. - Balance on wind power and de-bottlenecking (PTFE: increase in 20% capacity).
Other:
• Company is almost debt free, with Net D/E to 0.33. Company intends to be debt free in coming year.
• Working Capital improved to 120 days from 168 days.
• Around 7cr was impacted to fire incident.
• CAPEX budget is on basis of current raw material price.
• Company is almost debt free, with Net D/E to 0.33. Company intends to be debt free in coming year.
• Working Capital improved to 120 days from 168 days.
• Around 7cr was impacted to fire incident.
• CAPEX budget is on basis of current raw material price.
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