The company reported an all-around improvement in Revenue on YoY basis despite covid related lockdowns/restrictions. It reported an overall improvement in its operational performance with higher capacity utilisation across segments.
Financial Highlights Q1FY22:
- Revenue from operations for Q1FY22 stood at Rs520.5cr, a growth of 83% on a yoy basis. Covid related restrictions impacted the demand for its various products especially rural demand which resulted in marginally softer realisations over Q4FY21. However, the company negated such challenges by ramping up capacity utilisation of its various products like Caustic Soda and C-PVC.
- EBITDA for Q1FY22 stood at Rs59.6cr compared to Rs33.4cr in Q1FY21. Higher EBITDA was on account of higher volumes across all segments. However raw material costs like vcm, coal etc saw a significant increase which capped the expansion of EBITDA margins in Q1FY22. EBITDA margins remained flat at 11.4% in Q1FY22 versus 11.7% in Q1FY21 and 17% in Q4FY21. However, raw material prices have a lag effect on the margins. Margins are expected to realign and normalize going ahead.
- PAT stood at Rs13.4cr in Q1FY22, compared to a loss of Rs9.8cr in Q1FY21. The company had an exceptional gain in Q1FY22 on account of maturity proceeds of insurance policy to the tune of Rs13.9cr. Adjusting for that gains, PAT for Q1FY22 is Rs13.4cr versus loss of Rs9.8cr in Q1FY21. Cash PAT for Q1FY22 stood at Rs35.3cr as compared to Rs11.8cr in Q1FY21.
The second wave of Covid brought new challenges, especially on the demand front from rural areas. The company worked on these challenges and mitigated them to large extent by increasing capacity utilisation across all its products. DCW reported its best-ever quarterly sales during the Q1, with revenue growth of 83% YOY for Q1FY22. This growth was predominantly led by higher volumes for PVC, C-PVC, Caustic soda and SIOP.
The Specialty chemicals segment remains a stable revenue generator and shows tremendous potential going ahead. C-PVC maintained its strong foothold by contributing 27.6% to the total EBITDA. The SIOP division has been showing a promising turnaround and is likely to contribute meaningfully backed by higher capacity utilization and favourable market conditions in coming quarters.
During FY21 DCW was able to manage the fundraise of Rs4,100mn via NCD’s of Rs3,500mn and OCD’s of Rs600 mn. Through these transactions, the company extended its debt stack maturities and added additional liquidity to the balance sheet. Benefits of these arrangements would start pouring in from the current fiscal FY22.
Overall, DCW endeavours to grow the speciality chemicals segment contribution, and further strengthen the balance sheet which shall enhance value for the stakeholders.”
At around 1:35 PM, DCW was trading at Rs39.05 apiece up by Rs0.1 or 0.26% on the BSE.