Camlin Fine Sciences slumps as Russia-Ukraine crisis may impact earnings

29 Apr 2022 , 10:24 AM

Camlin Fine Science said that the Russia-Ukraine crisis has had an adverse impact on all costs especially raw materials, logistics and power and fuel.

The companys material subsidiary CFS Europe SpA which manufactures Diphenols in Italy, Europe has been severally impacted due to phenomenal increase in power costs, owing to this crisis. The normal average quarterly power cost has increased by 240% in quarter ended 31 March 2022 which has resulted in an increase in power cost of around Rs 28 crore in the quarter.

The group has been able to transfer some of the inflationary increase in the costs to its customers by increasing the sale prices, but to a certain extent.

However, the company said it expects to have an impact on the consolidated results for the quarter and financial year ended 31 March 2022.

The future impact of the situation is difficult to be assessed at this point, as the situation is unravelling at a fast pace. We are closely monitoring the situation and would initiate appropriate steps on the quantum of production to be undertaken in CFS Europe SpA based on the diphenol prices and increasing power costs, so as to reduce the impact on the results, Camlin Fine Science said in a statement.

The continuance of this situation may lead to some impact on all other manufacturing units of the group, but we do not expect it to be major, it added.

The company said it was closely reviewing the market environment and is gearing itself up for an immediate mitigation response to the adversity. As the company is still in the process of finalising its results for quarter and year ended 31 March 2022 and the actual results thereof may differ from what is disclosed in this intimation, it stated.

Camlin Fine Sciences is the leading integrated manufacturer of the most preferred traditional antioxidants (Shelf Life Solutions) available.

On a consolidated basis, Camlin Fine Sciences net profit rose 86.25% to Rs 28.72 crore on 27.83% rise in net sales to Rs 380.82 crore in Q3 December 2021 over Q3 December 2020.

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