Highlights of the Concall

• Camlin Fine Sciences consolidated revenue was up 31% to Rs 181 crore in Q1FY19 compared to Q1Fy18 on the back of strong growth in India (54.3% , Europe (61.9%),Mexico (29.5%) and Brazil (54.5%), partially offset by 4.5% decline in the US.

• EBITDA was at Rs13.9 crore in Q1FY19 comapred to loss at EBITDA level of Rs 11.6 crore in Q1FY18. EBITDA at standalone level stood at Rs 8.2 crore compared to Rs 2 crore in Q1FY18.

• Consolidated EBITDA margin was 7.7% while standalone EBITDA margin was 7.6%.

• Q1FY19 PBT was Rs 1.7 crore against loss at PBT level in Q1FY18 of RS 21.7 crore due to better subsidiary profitability aided by a rise in other income. However, PBT was impacted by a loss in Brazil (Rs 5.8 crore), US (Rs 3.4 crore), China (Rs 3.5 crore). Net loss contracted to Rs 6 crore from Rs 12.1 crore in Q1FY18

• The breakeven revenue for US operations is Rs13.7 crore per quarter with a fixed cost of Rs 3.9 crore

• China (Vanillin) operations are expected to generate revenue in the range of Rs157-230 crore in FY19.

• The company's recent initiatives to expand capacities (performance chemicals) in 4-Methoxyphenol (MEHQ), 2-Chloro-1,4-dimethoxybenzene (CME), 4-Tertiary Butyl Catechol (TBC), and Guaiacol with gross capex of Rs10 crore should bode well on revenue in FY20. The impact on the profitability could be only seen once the Dahej plant is stabilized and low-cost HQ and CT are available for the forward production

• Camlin Fine Science raised US $ 15 million FCCB funding from IFC (International Finance Corporation). Tenure of FCCB is for five years with fixed coupon rate of 4.5% per annum. FCCB will be convertible at a price of Rs125 per share. However, the kick-off event will trigger once the stock price has been or equal to Rs 225 per share and remain above that price level for six months. If the FCCB does not qualify for the conversion (conversion kick—off event Rs225 per share), then it attracts an additional coupon rate of 2.0%. FCCB also attracts 0.5% coupon rate till the time the stock price remain below Rs105 per share

• Brazil and US operations continue to remain in loss due to lower economies of scale. The company expects a turnaround in Brazil business from H2FY19. The US business is expected to turn corner by Q4FY19. In Q1FY19, the combined PBT loss of the two businesses was Rs 9.2 crore with no deferred tax benefit.