Fineotex Chemical Limited (FCL), one of India’s leading and most progressive specialty chemical producers with a market leading position in international textile industry has announced robust financial numbers in Q4FY22.
Consolidated Business Q4-FY22 vs Q4-FY21 (Y-o-Y basis)
• The Revenue from Operations of the Group has increased to Rs. 12,139 Lakh from Rs. 7,502 Lakh. The Revenue from Operations registered a growth of ~ 62 percent;
• The Profit after tax (PAT) of the Group has increased to Rs. 1,700 Lakh from Rs. 1,195 Lakh. The PAT registered a growth of ~ 42 percent;
• The Operational EBITDA of the Group has increased to Rs. 2,152 Lakh from Rs. 1,285 Lakh. The Operational EBITDA registered a growth of ~ 67 percent;
• The EPS of the Group has increased to Rs. 1.5 per share from Rs. 1.0 per share. The EPS registered a growth of ~ 50 percent;
Consolidated Business FYE March 2022 vs FYE March 2021 (Y-o-Y basis)
• The Revenue from Operations of the Group has increased to Rs. 36,823 Lakh from Rs. 21,851 Lakh. The Revenue from Operations registered a growth of ~ 69 percent;
• The Operational EBITDA of the Group has increased to Rs. 7,121 Lakh from Rs. 4,057 Lakh. The Operational EBITDA registered a growth of ~ 76 percent;
• Final Dividend – The Board has recommended a final dividend subject to the approval of members at the ensuing Annual General Meeting @ 20 percent i.e. Rs. 0.40 (PY Rs. 0.30) per Equity Share of Face Value of Rs. 2/- which represents 33 percent Y-O-Y growth in the dividend.
Highlights of India Business: India business represents the performance of FCL Standalone and FSPL (wholly-owned subsidiary in India)
India Business Q4-FY22 vs Q4-FY21 (Y-o-Y basis)
• The Revenue from Operations of the Company has increased to Rs. 10,117 Lakh from Rs. 4,796 Lakh. The Revenue from Operations registered a growth of ~ 110 percent;
• The Profit after tax (PAT) of the Company has increased to Rs. 1,696 Lakh from Rs. 910 Lakh. The PAT registered a growth of ~ 86 percent;
• The Operational EBITDA of the Company has increased to Rs. 2,012 Lakh from Rs. 1,030 Lakh. The Operational EBITDA registered a growth of ~ 95 percent;
India Business FYE March 2022 vs FYE March 2021 (Y-o-Y basis)
• The Revenue from Operations of the Company has increased to Rs. 28,261 Lakh from Rs. 12,948 Lakh. The Revenue from Operations registered a growth of ~ 118 percent;
• The Operational EBITDA of the Company has increased to Rs. 6,191 Lakh from Rs. 3,122 Lakh. The Operational EBITDA registered a growth of ~ 98 percent;
Other Highlights
• Working Capital Cycle – There have been continuous improvements in the working capital cycle over the periods mentioned below –
Consolidated business – Net working capital has been improved by 51 days
India business – Net working capital has been improved by 47 days
• Volume Growth – For the current FYE March 2022 the consolidated business has seen overall volume growth of 62 percent compared to the previous FYE March 2021. India business has observed overall volume growth of 85 percent compared to the Previous FYE 2021.
Commenting on the successful result, Surendrakumar Tibrewala, CMD, Fineotex Chemical, said, “We are thrilled to announce the tremendous growth numbers. We will continue to strengthen our position and expand into new, untapped markets. Our aim will be to develop our chemistries and enter into strategic alliances in order to strengthen our existing and new relationships in both the domestic and foreign markets. Our plant’s sustainability requirements will allow expansion and further utilisation, and with demand on the rise, we anticipate a bright future. These are exciting times for Fineotex, and we are excited about the progress that is being achieved and the chances that are heading our way. The Board has proposed a final dividend of Rs. 0.40 per share of face value Rs. 2.”
Commenting on the successful result, Sanjay Tibrewala, Executive Director and CFO, Fineotex Chemical, said, “We have continued our growth trajectory in the current year, attaining 69 percent percent growth, achieving working capital efficiency, and boosting our EBITDA margins. With the onset of the pandemic, we focused on developing home care and hygiene specialities, a diversified but related division of non-toxic specialty chemical solutions. This emerging business has opened up substantial business openings and thus giving us the opportunity to tap into new markets. The new manufacturing hub at Ambernath is one of the several new investments by us. It was a logical and necessary step in expanding and strengthening our competitive position at a local and global level. The initial planned capacity of 36,000 MTA is being ramped up to 40,000 MTA to cater to growing demand. In terms of our future trajectory, we are currently working on an additional expansion 21,000 MT. Due to process efficiency achieved internally; our working capital has also shown constant improvement. Our advanced capabilities, along with strategic collaborations, position us well to sustain growth, add value to our clients and maximise shareholder value.”
FCL’s CEO, Arindam Choudhuri mentioned, “We have expanded our portfolio and are working on providing more solutions for textile companies as well as a more diverse product range. With these steps, we feel all stakeholders will be able to see an even more beneficial shift in the growth. We have made a significant contribution to the worldwide ESG and sustainability movement. We manufacture while protecting the environment’s long-term viability and are devoted to zero waste practices, as seen by our extensive certifications and accreditations. It has endeavored to efficiently manage the release of dangerous chemicals, most notably by launching Zero Discharge of Hazardous Chemicals programmes (ZDHC).”
