• Net revenues were up 6% to Rs 1,700 crore in Q2FY19 against Rs 1,605 crore for same period last year. PBDIT stood at Rs 313 crore vs Rs.306 crore over same period last year. Finance costs have gone up with higher working capital due to sharp increase in Sugar Inventory and Urea subsidy outstanding, a consequence of introduction of DBT. PAT stood at Rs 169 crore vs Rs 172 crore for same period previous year

• Net Revenues stood at Rs 3,768 crore in H1FY19 vs Rs 3,551 crore over same period last year. PBDIT was up 2% to Rs 661 crore over same period last year. PAT at Rs 387 crore against Rs. 406 crore for the same period last year. PAT is down due to higher finance costs and depreciation

• Projects under implementation at investment of around Rs. 1,150 crore over next 4-5 quarters in Sugar and Chloro-Vinyl segments, to be commissioned in phases

• Gross Debt as on September 30, 2018 stood at Rs. 915 crore vs. Rs 673 crore as on September 30, 2017. Cash and Cash equivalents stood at Rs. 456 crore vs Rs. 717 crore for the same period.

CHLORO VINYL

• Q2FY19 revenue increased 23% YoY to Rs 416.9 crore with volume growth of 5% and increase in net realizations by 16%. Revenue declined by 11% QoQ with realizations down by 7%. PBIT was up by 25% YoY at Rs 183 crore.

• One of the plant had a maintenance shut down during Q2 FY19. Operations have normalized now.

• 168 TPD additional caustic soda capacity at Kota commissioned which shall contribute to revenues in FY19.

• Projects under implementation of 332 TPD capacities at Bharuch to come on stream in phases by Q1 FY 20.

• Caustic ECU prices moved down in Q2FY19 against Q1 FY19, but have seen an upward movement since August 2018

PLASTICS

• Revenue were lower by 7% YoY to Rs 136.3 core due to lower volumes resulting from 10 days shut down. PBIT down due to lower volumes, higher input costs and shut down expenses.

• PVC and Carbide prices were up 10% and 20% respectively. PVC volumes were down 19%. Carbide volumes were lower 16%

• 40 TPD PVC plant at Kota is expected commission by Q3 FY20.

• PVC prices are stable. Rising input costs may put margins under pressure

• Overall revenues were down 7% YoY to Rs 516.5 crore in Q2 FY19. Sugar revenues declined by 23% YoY.

• Sugar volume declined by 9% due to sales restriction by central government. Sugar realizations down by 14%. Realizations of molasses remained under pressure during the quarter.

• Overall earnings were up 18%. Sugar earnings declined by 52% as sugar prices remained at Rs 3,207 per Qtl during the quarter, below the Season 2018 cost of Rs 3,585/ Qtl. PBIT of Rs 48 crore from Distillery, partly mitigated lower earnings from sugar.

• Inventory valued at Rs 3,120 per Qtl leading to a revaluation gain of Rs 48 crore for Q2 FY19 (H1 FY19 gain of Rs 11 crore).

• Sugar Closing stock stood at 21.84 lac qtls as on 30th September, 2018 vs 3.93 lac qtls as on 30th September, 2017.

• Q2FY19 has seen some revival in the prices vis a vis Q1 FY19 which saw prices going down to near Rs 2,500 per Qtl. Present prices levels of ~Rs 3,250 per Qtl.

• Government has announced export of 5 Mn tonne of Sugar for SY 2018-19. Companies have started contracting for the same.

• Fresh capacity expansion proceeding is as per schedule- Sugar Capacity (5000 TCD) to be completed by 3rd Quarter FY'19, Co-gen (30 MW) to be completed by 3rd Quarter FY'19 and 200 KLD Distillery – to be commissioned in 3 rd Quarter FY'20

• Total revenues for Q2FY19 was by 3% YoY to Rs 156.9 crore led by positive growth from value added inputs (revenues up by 40%). Revenues from Bulk fertilizers down by 50% (part of planned initiative).

• Contribution of value added business in revenue increased to 81% in Q2 FY19 from 60% in Q2 FY18.

• The company is planning to further reduce the volume of bulk fertilizers going forward.

• The company has enhanced focus on value added products which will lead to better growth and profits in medium term.

• Overall revenues were up 3% YoY to Rs 82.7 crore. Q2 is an off-season for this business in India. Net revenues from India operations were up 19% YoY at Rs. 69 crore lead by Corn and Hybrid Paddy.

• International business revenue were down 38% YoY to Rs 14 crore due to impact on corn sales in some countries

• The company expects growth in this business over medium term.

• Revenue for Q2FY19 increased 26% YoY to Rs 247 crore led by improved realizations, which is reflection of higher energy costs (a pass through).

• Subsidy outstanding as on 30th September, 2018 stood at Rs 360 crore vs Rs 283 crore as on 30st September 2017 leading to higher capital employed.

• Plant had a stoppage for 9 days during the quarter which is stabilized now.

• Government has referred the matter of energy norms w.e.f 1st April, 2020 and the issue of increase in conversion costs to Niti Aayog.

• Q2 FY19 net revenues at Rs 99 crore increased by 16% YoY and 7% QoQ, led by retail segment. H1 FY19 saw an increase of 18% YoY in the revenues to Rs 191.5 crore

• Improvement in the overall economic scenario and uptick in the real estate sector will enable higher penetration of the uPVC window offerings