Archean Chemical Industries (ACI) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose 65.52% YoY to ₹113,043.71 lakh; standalone PAT was ₹18,861.39 lakh versus ₹6,658.66 lakh in FY21.

• Performance benefited from stronger industrial salt sales and higher bromine sales; SOP sales declined. The outlook was described as moderate and cautious amid global economic stress and high inflation.

Financial highlights

• Standalone total income was ₹114,308.00 lakh and PBT ₹25,141.75 lakh in FY22, versus ₹75,478.99 lakh and ₹9,047.59 lakh, respectively, in FY21.

• Standalone EPS was ₹18.26 versus ₹6.45; consolidated PAT was ₹18,820.92 lakh and consolidated EPS ₹18.22.

• Standalone operating cash flow rose to ₹32,709.36 lakh from ₹11,909.57 lakh; cash and cash equivalents ended FY22 at ₹724.68 lakh.

• Export sales were ₹79,488.00 lakh and domestic sales ₹33,470.43 lakh; exports represented the larger share of revenue.

Outlook and guidance

• Industrial salt volumes were expected to grow in coming years, supported by deeper market penetration in China and improved price realization and sales quantity in FY22.

• Bromine production and sales were expected to increase, with new domestic and export customers targeted; quality, market proximity and freight advantage were cited as strengths.

• SOP production optimization and better conversion ratios remained priorities; the overall business outlook was moderate and cautious, with efforts focused on sustaining revenue and improving profitability.