Highlights of the Concall

• Himadri Speciality Chemical revenue grew 51% in FY18 to Rs. 2022 crore due to increased volume, improved product mix & better realization. EBITDA Outpaced by 73% to Rs 452 crore led by increased contribution from higher margin products and higher utilisation of capacities and operational efficiencies. Net Profit increased by 200% to Rs 248 crore

• Volumes increased to 97505 tonne in Q4FY18 from 92231 tonne in Q4FY17 and 93186 tonne in Q3FY18

• EBITDA per tonne rose to Rs 12971 per tonne in FY18 from Rs 7854 per tonne in Q4FY17 and Rs 12930 per tonne in Q3FY18

• EBITDA per tonne rose 71% in FY18 to Rs 11852 from Rs 6920 per tonne in FY17

• Net Debt reduced by Rs. 110 crore in FY18 to Rs. 626 crore

• Advance Carbon Material (HSCP) is operating at full capacity

• New grades of specialty carbon black successfully introduced in the market

• The company plans to set-up a manufacturing facility of Advance Carbon material (HSCP) in West Bengal with annual capacity of 20,000 MT over next two years. Further it plans to set up specialty carbon black unit in West Bengal with annual capacity of 60,000 MT by exit FY19. Both projects would entail a capex of Rs 600 crore over two years funded through internal accruals.

• The company continues to do well in its core businesses of Coal tar distillation and carbon black

• India's aluminium production capacity is expected to increase from 2.75 MTPA to 4 MTPA by end-FY19. Coal Tar Pitch is a key input for aluminium industry. One tonne of Aluminium requires 100 kgs of Coal Tar Pitch and 1MT of Graphite requires 440kgs of Coal Tar Pitch.

• Government of India has imposed anti dumping duty on import of SNF (Sulphonated naphthalene formaldehyde) from China for a period of five years. Himadri Speciality chemical is the largest manufacturer of SNF in India with a market share of close to 50 percent.

• Himadri speciality chemicals coal tar distillation capacity would increase to 500000 tonne per annum by Q3FY19 from present 400000 tonne per annum

• Carbon Black capacity (120000 tonne per annum) is running at a capacity utilisation of 88%. The company expects it to remain same in FY19

• The company is expanding its lithium ion batteries capacity to 5000 tonne which is expected to be operational by Q4FY19. Further by FY20 it expects capacities of 20000 tonne.

• Global demand of lithium ion batteries is around 200 thousand tonne which is growing at a CAGR of 30-40%.