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Sudarshan Chemical conducted conference call to discuss the financial results and performance of the company for the quarter ended June 2019. Managing Director- Mr Rajesh Rathi, General Manager (Finance)- Mr Vivek Thakur and Deputy General Manager (Finance) - Mr Amey Athalye addressed the call.
Highlights of the Concall
Consolidated Q1FY20 income from operations grew 10% to Rs 397 crore compared to Q1FY 19
Specialty pigments portfolio volume grew 13% YoY and Non Specialty portfolio grew 4 %YoY. Overall volume growth was 8%YoY
Exports as a % of revenue stood at 49% in Q1FY20.
EBITDA Margins stood at 15.7% down marginally as compared to 16.1% in Q1FY19.
Q1FY20 Gross Margins improved to 42% as compared 40% in Q4FY19 despite continuing of pressure on select intermediates. Margins improved at the back of customer pass through of input price escalations
The company expects raw material scenario to continue for few more quarters.
The company continues to focus on backward integration initiatives for few of key raw materials
The company expects capex of Rs 200 crore in FY20- investment in launching of new products, few capacity bottlenecking, backward integration of few raw materials and infrastructure development.
Capex incurred inn Q1FY20 was about Rs 40 crore.
The company is planning to launch 20-25 products in FY20 out of which there are two major product lines. Infact the company is launching 5 new products on the day of concall itself. The company currently has about 400 products
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