Laxmi Organic Industries Limited reports Q1FY22 results

Laxmi Organic Industries Limited (NSE: LXCHEM|BSE:543277|ISIN: INE576O0102), one of India's leading specialty chemical manufacturers, has announced its financial results for the first quarter ended June 30th, 2021.

Standalone Financial Highlights for Quarter Ended June 30th, 2021:

- Operating Revenues at ₹ 6,897 Mn in Q1FY22 as compared to ₹ 3,537 Mn in Q1FY21; a growth of 95% Y-o-Y and growth of 48% Q-o-Q

- EBITDA at ₹ 1,367 Mn in Q1FY22 as compared to ₹ 371 Mn in Q1FY21; a growth of 268% Y-o-Y and a growth of 146% Q-o-Q

- EBITDA Margins stood at 19.82% in Q1FY22 and expanded by 932 bps Y-o-Y; and 794 bps Q-o-Q

- Profit After Tax at ₹ 987 Mn in Q1FY22 as compared to ₹ 186 Mn in Q1FY21; a growth of 431% Y-o-Y and a growth of 216% Q-o-Q

- EPS for Q1FY22 was 3.74 as compared to 0.83 in Q1FY21 and 1.34 in Q4FY21

Consolidated Financial Highlights for Quarter Ended June 30th, 2021:

- Operating Revenues at ₹ 7,364 Mn in Q1FY22 as compared to ₹ 4,036 Mn in Q1FY21; a growth of 82% Y-o-Y and a growth of 42% Q-o-Q

- EBITDA at ₹ 1,453 Mn in Q1FY22 as compared to ₹ 420 Mn in Q1FY21; a growth of 246% Y-o-Y and a growth of 128% Q-o-Q

- EBITDA Margins stood at 19.73% in Q1FY22 and expanded by 933 bps Y-o-Y; and 747 bps Q-o-Q

- Profit After Tax at ₹ 1,023 Mn in Q1FY22 as compared to ₹ 214 Mn in Q1FY21; a growth of 379% Y-o-Y and a growth of 181% Q-o-Q

- EPS for Q1FY22 was 3.88 as compared to 0.95 in Q1FY21 and 1.56 in Q4FY21

Commenting on the strong financial performance Mr. Ravi Goenka, Chairman & Managing Director, said, "I am pleased to announce that Laxmi Organic Industries has delivered a robust financial performance in this quarter. The operating revenues came in at INR 6,897 Mn as against INR 3,537 Mn in Q1FY21 and INR 4,674 Mn in Q4FY21. The strong growth in revenues was fueled by 102% and 126% Y-o-Y growth in Acetyl Intermediates (AI) and Specialty Intermediates (SI), respectively. Similarly, the AI and SI grew by 31% and 53% respectively on Q-o-Q basis. The strong performance in AI business was attributable to higher realizations, whereas the SI business was driven by both volume and pricing. Our SI business recorded the highest volumes this quarter and delivered 20% export revenue. The demand from end-user industries also remained strong. This resulted in corresponding growth of 268% and 431% Y-o-Y basis in EBITDA and PAT, respectively. Similarly, the EBIDTA and PAT grew by 146% and 216% respectively on Q-o-Q basis."

He also added "The floods in Maharashtra in July impaired our operations in Mahad, and our SI unit has been severely impacted. The SI unit has suffered a complete shut down in operations with flooding, lack of electricity, and other structural damages brought about by the flood. We are insured adequately, including loss of profit. Currently we are in the midst of assessing our damages and the insurance survey is underway, suffice to say that this will have a significant impact on our performance for this quarter.

As a company, we are strong and resilient, and we have proved that time and again. So, we are certain that we will be able to emerge stronger from this challenge as well."

Outlook

On-going capital expenditures at the speciality manufacturing site will be delayed due to the flood. However, the fluorochemicals site has been relatively unaffected and the ongoing capex plans at Lote Parshuram site remain on track. Q1 has given a good start to the company; however, the market has started to correct in the second quarter. Supported by the robust first-quarter we remain focused to achieve our FY22 annual business plans despite the flood-related disruptions.

Shares of Laxmi Organic Industries Limited was last trading in BSE at Rs. 272.7 as compared to the previous close of Rs. 275.95. The total number of shares traded during the day was 178646 in over 3330 trades.

The stock hit an intraday high of Rs. 282.3 and intraday low of 270.1. The net turnover during the day was Rs. 49407420.

Source : Equity Bulls

Keywords