Stock Report

Jubilant Ingrevia Ltd reports earnings for Q2FY22, H1FY22

Posted On : 2021-10-19 15:27:42( TIMEZONE : IST )

The Board of Jubilant Ingrevia Limited met today to approve financial results for the quarter & Half Year ended September 30th, 2021.

Q2'FY22 Highlights - Consolidated

Revenue grew by 56% on YoY basis, driven by robust growth in volume and prices.
Speciality Chemicals revenue grew by 17% YoY driven by volume growth across product segments.
Nutrition and Health Solutions revenue grew by 43% YoY driven by higher volumes and growth in Niacinamide price.
Life Sciences Chemical revenue grew by 84% YoY, driven by higher prices on account of favorable market conditions and passing-on of higher input cost of acetic acid.
EBITDA at Rs 202 Crore, grew by 44%, on account of strong performance of Life Sciences chemical segment led by favorable market conditions and volume growth in Nutrition and Health Solution.
PAT grew by 43% YoY driven by growth in EBITDA, added by reduction in finance cost through reduction in Gross debt and optimization of Interest rates.
ROCE in H1'FY22 improved to 33.2% against 20.2% in FY21
ROE in H1'FY22 improved to 26.6% over 16.4% in FY21

Segment Wise Analysis

Speciality Chemicals

Specialty Chemicals revenue grew by 17% on YoY basis driven by higher volume across product segments
North America revenue grew significantly; percentage share to total revenue increased to 11% from 9%.
Domestic Sales for International consumption percentage share to total revenue grew from 6% to 12%
Agrochemical grew as percentage share to total revenue increased to 25% from 21%.
Consumer as percentage share to total revenue increased to 9% from 7%.
EBITDA remained flat and EBITDA Margin declined at 24.1% vs 28.1% in Q2'FY21, due to volatility in prices of input costs.

Nutrition & Health Solutions

Nutrition and Health Solutions revenue grew by 43% on YoY basis.
Growth was driven by prices and growth in Niacinamide volume.
Animal Nutrition and Health solution business growth was led by higher volumes of Choline Chloride and specialty products.
Consumption in EU and contribution in sales has gone up from 20% to 28 % and in North America from 12% to 23%,
Feed volumes grew by 34% and Food by more than 100%
EBITDA grew by 23% on YoY basis. EBIDTA Margin stood at 19.5% vs 22.6% in Q2'FY21, EBITDA margin was lower by 3.1% on account of continuing increase in input costs and along with discontinuation of export benefit (MEIS).

Life Science Chemicals Segment

Life Sciences Chemicals revenue grew by 84% on YoY basis
Life Sciences Chemical revenue growth was driven by higher prices across products and higher volume of Acetic Anhydride.
Prices improvement was mainly on account of favorable market condition driven by disruption in European and China market driven by force majeure by key supplier of Acetyl products.
Consumption in domestic sales for export has gone up significantly and its contribution percentage to revenue increased from 18% to 23%.
EBITDA Margin stood at 13.8% compared to 9.7% in Q2'FY21. Growth in EBITDA margin was driven by
Improved product contribution driven by favourable market condition.

H1'FY22 Highlights - Consolidated

Revenue grew by 56% on YoY basis, driven by robust growth in volume and prices.
Speciality Chemicals revenue grew by 18% YoY driven by volume growth across product segments.
Nutrition and Health Solutions revenue grew by 26% YoY driven by higher volumes and growth in Niacinamide price
Life Sciences Chemical revenue grew by 93% YoY, driven by higher prices on account of favorable market conditions and pass-on of higher input cost of acetic acid
EBITDA at Rs. 490 Crore, grew by 83% on account of strong performance of Life Sciences chemical segment led by favorable market conditions supported by Speciality Chemicals.
PAT grew by 115% YoY driven by growth in EBITDA, aided by reduction in finance cost on account of reduction in Debt and optimization of Interest rates.
ROCE in H1'FY22 improved to 33.2% against 20.2% in FY21
ROE in H1'FY22 improved to 26.6% over 16.4% in FY21

Business Outlook

Demand of most of our Products is expected to remain strong in H2. Though input costs are increasing our business teams are confident to pass on the incremental costs by working closely with customers
We will continue to make efforts to deleverage the Balance Sheet and reduce the Debt without compromising on growth.
Progress of ongoing Diketene Capex is as per schedule, and is expected to be commissioned during the Quarter Jan to March 2022.
Further during the year so far we have committed investment worth Rs. 450 Crore for following growth capex. At peak capacity these investments are expected to generate additional annual revenue of Rs. 900-1,000 Crore at prevailing prices

CDMO GMP Facility at Bharuch. (Expected to be in operation during the quarter April to June 2022)
Three Multi-Purpose plants of Speciality Chemicals. (Expected to be in operation during the quarter July to Sep 2022)
Food Grade Acetic Acid. (Expected to be in operation during the quarter April to June 2022)
Acetic Anhydride Plant. (Expected to be in operation during the quarter Jan to Mar 2023)
Agro Actives Phase-1. (Expected to be in operation during the quarter Jan to March 2023)

Our expected capex cash outflow for the year will be in the range of Rs 350 crore.

Commenting on the Company's performance, Mr. Shyam S Bhartia, Chairman and Mr. Hari S Bhartia, CoChairman, Jubilant Ingrevia Limited said: "With immense pleasure, I would like to announce that we have delivered yet another strong financial performance in Q2'FY22 and reported our highest ever revenue during the Quarter & Half Year ended 30th Sept'21.

Supply disruptions from China is coming to our advantage, due to which we are witnessing strong demand in most of our products and that is giving us an opportunity to increase our share with the global customers, while on the sourcing side we are having negligible dependence on China. We are finding unprecedented increase in almost all the input raw materials, fuels like Coal & Gas & Logistic cost, however our business team is confident to pass on the incremental costs by working closely with customers.

In our Specialty Chemicals segment we witnessed strong growth across the products led by growing demand from Pharmaceutical and Agrochemical customers. In Nutrition & Health Solution the demand of Vitamin B3 has been stable, and prices started to increase in Vitamin B3. We continue to work to improve our market share in niche segments like food and cosmetics. In Life Science Chemical Segment, we witnessed healthy demand from Pharmaceutical and Agrochemical customers resulting in volume growth in all the products.

I am happy to announce that we reduced the net debt further by Rs 193 Crore during Q2'FY22.

Looking Ahead we are excited with the growth opportunities in our businesses and we are fully committed to realize them. We have developed strong product pipeline using in-house R&D, our technical expertise into various chemistry platforms and long-standing relationship with global Pharmaceutical & Agrochemical customers including Innovators. We are prioritizing and investing in several growth capex in next 2-3 years to launch these products to achieve our growth target of doubling the revenue by FY'26 from the base of FY'21."

Shares of Jubilant Ingrevia Limited was last trading in BSE at Rs. 810.00 as compared to the previous close of Rs. 792.90. The total number of shares traded during the day was 109012 in over 5178 trades.

The stock hit an intraday high of Rs. 877.95 and intraday low of 804.00. The net turnover during the day was Rs. 89286769.00.