- Profit before tax has increased by 62% at 97.96% and PAT has also registered an increase of 78% to end at 67.70 Crores as compared to last year for the same period. For the three months quarter, the volume growth is 13% from Q3FY16 to Q3FY17.
- Gross sales of 534.16 Crores were made which is a an increase of 4.93% and volumewise the growth is up by 10% from last year 9 months result
- Exports have also shown a jump of 13%
- From the results it looks like that pricing has stabilized.
- EBITDA margins are not showing much difference in this quarter because of methanol price increase and some additional costs like diwali bonus (Rs. 1 crore), fuel price increase, freight on account of exports (Rs. 1 Crore). Certain maintenance cost of 1.5 to 2 Crores was also done in the plant.
- Going forward these expenses will see rationalization as the company is trying to pass on some part of the cost to end product pricing.
- EBITDA is expected to be between 20-23% by FY17 end and is expected at these levels or even better in the next Financial year.
- This segment has started registering profit. Cash profit of 90-93 lakhs was added to bottom line.
Future Plans and projects
- Morpholine plant with annual capacity of 7000 tonnes is also expected to start after the first quarter of next year in May or so.
- Morpholine plant is expected to add about 70-75 Crores to the top line riding on capacity utilization of 50% in the first year.
- Acetonitrile Plant
- Acetonitrile plant with capacity of 18000 tonnes per annum is a little delayed but is expected to start by December 2017. Company is waiting for environmental clearances.
- The demand for Acetonitrile is low in India but very healthy outside. Company is expecting to expand its exports with this product. Though in first year only 8000-9000 tonnes is the target.
- The end product price cyclically hovers between Rs 120-200 and if it touches the higher spectrum then the results can improve significantly