The first half of FY22 has seen some significant steps taken by the Chemcrux management, that signify a more aggressive intent towards the future growth of the company.
Financial performance of FY22H1 has been good as well, with net profit increasing 16% over FY21H1, which was impacted by Covid. The company appears to be on course to improve on its previous best performance, recorded in FY20.
Some highlights from FY22H1 results:
- Revenue for FY22H1 showed a 36% growth over FY21H1 and was around 73% of full year FY21 revenue. The growth is attributable to increase in prices across the value chain, input price rise driving increase in sales prices.
- Operating EBITDA margin felt the impact of strong input prices, dropping to 20% in FY22H1, as compared to 23% in FY21H1 and 24% for the full year FY21. The management expects the tight pricing environment to continue in FY22H2 as well, with supplies of inputs from China witnessing issues.
- New warehouse and R&D facility in a 10,000 sqft plot is now operational
- In a significant move in July, the management announced plans to migrate to the main board from SME exchange. The process is expected to culminate before close of FY22.
- In another significant move, in Sep’21, Chemcrux acquired a small API unit – Kali Chem – in a 50:50 JV with an API manufacturer. This unit is likely to be commissioned in 12-15 months, or by FY23. The unit has environmental clearance to make some APIs and chemical intermediates.
PS: Chemcrux Enterprise is a Specialty Chemical company listed on the BSE SME platform. Chemcrux manufactures import-substitute chemicals that go into manufacture of pharma APIs and pigments. Some of its key products are variants of Chloro Benzoic Acids and Nitro Benzoic Acid. Wisdomsmith advises Chemcrux on Investor Relations.