Top management of the company addressed the call:

Highlights of the call:

In March 2017 quarter sales stood at Rs 87 crore against Rs 68 crore. EBITDA stood at Rs 8 crore against Rs 9 croree. PAT stood at Rs 4 crore against Rs 9 crore.

In FY 2017 sales stood at Rs 390 crore against Rs 268 crore. EBITDA stood at Rs 29 crore against Rs 38 crore. PAT stood at Rs 19 crore against Rs 25 crore.

During the quarter Apcotex incurred revenue loss of around Rs 26-30 crore due to strike at Taloja plant for a period of 52 days from January 9, 2017 to March 2, 2017.

Currently the union agreement has been settled and now normalcy has been restored in March 2017 and production is running smoothly.

However the company reported better margins in Q4 due to efficient raw material buying.

The company saw lower volumes in Paper and Paperboard industry due to temporary shutdown of one of the largest customers.

Apcotex Industries acquired Apcotex Solution India Private Limited (Erstwhile known as Omnova Solution) on 5 February 2016. Hence the financials for Q4 FY17 and FY17 are not directly comparable.

The Board of Directors on 22 April 2016 had approved the Scheme of Amalgamation of Apcotex Solutions India Private Limited (earlier known as OMNOVA Solutions India Private Limited), a wholly owned subsidiary of the Company with itself. The Bombay High Court on October 27, 2016 approved the Scheme of Amalgamation.

As on March 2016, Apcotex Soutions India Private Limited had networth of Rs 113.19 cropre. Apctoex had networth of Rs 94.68 crore.

Capex for FY18 is expected to be Rs 25 to 30 crore.

The company is exploiting synergies of acquisition to reduce costs in FY18.

The company restarted HSR production in Taloja from April 2017 after one year. This will lead to margin expansion due to lower operating costs in Taloja.

The company has strong pipeline of export orders.

Paper and Paperboard volumes are looking stronger.

New supplier of a key raw material, Butadiene, has started production in Gujarat leading to more options and better buying.

GST will have an overall positive impact for the company.

Raw material prices crashing in Q1 could lead to some pressure in margins in the short term.

Negative tax is due to reversal of the tax provision made in earlier quarters.

The company has been continuously upgrading its own technology through in house research & development efforts to meet the changing needs of customers.

The company enjoys strong entry barriers. The new entrants in the industry will not be able to replicate automated plant setup.

Apcotex has a strong global presence in South East Asia, Middle East & Africa and intends to tap the Asian Markets.

Products of Apcotex Solutions will the company capture market where currently 80% is catered through imports.

Apart from the existing product portfolio, the next generation product pipeline is strong to propel growth.

The company enjoys presence in the stable growth industries like Paper, Construction, Carpet, Tyre and Rubber provides stable growth & is a strong base for Apcotex Industries.

Business from one of its largest customers remains uncertain due to shut down.

In the last few years the company has increased its market share in India.