Highlights of the Concall 

• The company achieved its highest ever quarterly revenues, EBITDA, and PAT numbers in Q4FY21 with exports also achieving highest ever numbers. 

• The company saw strong demand across most user industries 

• The company has scaled up of production/sales of XNB latex which is used for manufacturing hand Gloves from existing plants with both plants running at near full capacity. 

• Customer and product mix has been optimized in the quarter, with better procurement of raw materials and implementation of cost saving projects over the last few months and the year assisted in bolstering the margins. 

• The company expects to do sustainable Ebitda margin of around 14-15% 

• Fresh petitions have been filed against Russia, Japan and France. The hearing has been completed and final recommendations from DGTR are expected in Q1-FY22. 

• The DGTR has recommended an antidumping duty against Korea. However the finance ministry has not notified it. 

• The company's antidumping cases are for NBR business which forms around 30% of total sales. 

• There has been a delay in commencement of construction of new project for XNB Latex project for Gloves due to delay in statutory/environmental permissions. 

• The company is running plants at its 100% capacity utilisation. 

• The company expects to debottleneck some of its capacities is in the course of the next three to six months. As a result it expects improvement in Ebitda per tonne going forward. 

• The company plant to increase capacity at its Taloja plants details of which would be announced in next quarter. 

• The company expects XNB Latex project and Taloja plant expansion to be commissioned in FY23. 

• Post all the capex and debottlenecking the company expects additional revenues of Rs 350-500 crore over 1-2 years 

• The company expects that at least in the industry which it caters to like construction, paper, tyre, carpet, auto will grow over the next couple of years, two to three years. However, it is also focused on the export market and in Q4, in fact, the company had highest export sales. In percentage terms around 20% of sales are export.  

• The company's XNB Latex project which would be started after monsoon would require capex of about Rs 100-110 crore in FY22 and early FY23. In addition to that the company requires maintenance capex of about Rs 15 crore every year. In total the company expects total capex of about Rs 100-150 crore in FY22 including expansion at Taloja plant