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Navin Fluorine Q1 FY22 Conference Call Highlights - Navin Fluorine Analysis | Invest Yadnya

Navin Fluorine Q1 FY22 Conference Call Highlights

Published on 02 August 2021 Views 58 Comments 0

Financial Highlights

  • Consolidated revenue of Navin Fluorine share price from operations stood at 327 crores rising 52% YOY & took a baby step on QOQ basis rising meagre 0.31% according to Navin Fluorine stock analysis.

  • Expenses of Navin Fluorine results Q12022 also stood at 249 crores rising 54% YOY declining 1.1% QOQ as of Navin Fluorine annual report.

  • EBITDA of Navin Fluorine Navin Fluorine fundamentals  stood at 87 crores declining 3.33% YOY & 20% QOQ according to Navin Fluorine analyst report.

  • EBITDA of Navin Fluorine result, margin stood at 27% declining 15% YOY & 5% QOQ as of Navin Fluorine fundamental analysis

  • According to Navin Fluorine research report ,PAT was flat YOY at 56 crores but declining 25% QOQ which is known by Navin Fluorine technical analysis.

  • PAT of Navin Fluorine analysis, margin stood at 17% declining 9% YOY & 5% QOQ as of Navin Fluorine results.

Business Highlights

  • 64% contribution came from high value business & 36% came from legacy business which can be analysed by Navin Fluorine review.

  • Revenue from High value business rose to 200 crores from 131 crores rising 53% YOY. The growth in specialty chemical was due to better demand across domestic and international market along with market share gains. On the other hand, CRAMS business growth was primarily on account of better traction towards repeat orders

  • Legacy Business also rose to 114 crores from 74 crores YOY

  • Specialty Chemicals: Revenue rose 37% YOY from 97 crores to 133 crores of which 47% came from the international business while the remaining was domestic revenue. Business growth driven by a mix of new products and market share gain, Good demand from International and Domestic markets & robots pipeline drew its growth.

  • CRAMS Business: Revenue rose from 34 crores to 67 crores showing a 98% growth YOY. Good performance driven by repeat orders leading to better capacity utilization, New customer development across Europe and US, Focus on expanding project pipeline and further diversifying customer base drew the vertical’s growth

  • Inorganic Fluorides: Revenue grew 100% YOY from 28 crores to 56 crores on grounds of Good demand from the existing end-user industry, good traction seen from newer end-user segments. 90% revenue came from India while 10% came from international business

  • Refrigerant Business: Revenue displayed 28% growth YOY from 46 crores to 59 crores. 59% revenue was from India & remaining from a local business. The business grew Trade and service demand improved despite COVID related restrictions, Steady Non-emissive application sales, international markets witnessed good volume growth, however, prices were subdued

  • The management has highlighted that the gross margin is likely to be under pressure as one of the key raw materials saw a significant price increase in 1QFY22 – which is likely to continue for another quarter. Furthermore, a large mineral mine was closed down due to labor issues and is expected to resume operations by the end of the year. Thus, expect raw material price inflation to continue till the end of CY21, with customers absorbing the increase in costs as per varied contracts (from 3Q–4QFY22)

CRAMS Business

  • The company has been witnessing good inquiries from the US and Europe for its CRAMS portfolio. It has added two new midsized biologic pharma companies from US under CRAMS during the quarter

  • From Europe, it is witnessing new product inquiries from existing innovator customers

  • It plans to debottleneck its cGMP3 CRAMPS facility during the course of the year, which can help to drive volume growth by at least 15%

  • Post design layout being ready, it may announce Capex towards cGMP4, which can take 12-15 months of commissioning post-Capex approval

  • There has been a delay in the execution of one contract to the tune of  5-6 crore, which is expected to be booked in July 2021 vs. June 2021

Speciality Chemical:

  • Total 40% of revenue comes from agrochemicals while 40% comes from pharma and 20% from industrial, of which industrial is a multiyear contract.

  • On the other hand, pharma is a spot contract and half of the agro is multi-year, while half is on spot. Multi Year contract price revision happens at the beginning of the calendar year in cash on any input price fluctuation

  • Due to the rise in input cost for one of the RM, part of the 20% of agrochemical business has been impacted. One of the customers was allowed to take a price increase post Q2FY22E while another agreed from the beginning of the next calendar year

Other updates:

  • HPP plant is likely to get commissioned in Q4FY22E or Q1FY23E while MPP capacity at Dahej may come on board by H1FY23E

  • It acquired two customers from Korea, of which one is for the industrial segment while another is for inorganic fluoride

  • The rise in employee cost during the quarter is on account of an increase in the employee count for the technology division and higher variable and fixed payout. Around 40% is due to an increase in employee counts while the rest is from higher variables & fixed payout.

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