Fine Organic Industries (FINEORG) Q4 18/19 earnings summary

Executive summary

• FY2018-19 delivered strong growth, supported by higher volumes and realizations, full plant utilization, and demand across end-user industries and geographies.

• Revenue reached ₹104,397.20 lakh standalone and ₹106,033.28 lakh consolidated; consolidated net profit was ₹13,625.53 lakh.

• Innovation and diversification remained central, with 30 new specialty additives introduced and 400+ products across food, plastics, cosmetics, coatings, rubber, and other applications.

Financial highlights

• Standalone revenue from operations rose 21.92% YoY to ₹104,397.20 lakh; growth reflected higher volumes and better realization.

• Standalone EBITDA increased 35.5% to ₹22,225.17 lakh; EBITDA margin expanded to 21.29% from 19.15%.

• Standalone PAT grew 27.31% to ₹12,901.37 lakh; PAT margin was 12.36% versus 11.83%.

• Consolidated revenue from operations grew 23.90% to ₹106,033.28 lakh; consolidated PAT was ₹13,625.53 lakh versus ₹9,532.74 lakh.

• Standalone operating cash flow was ₹9,718.48 lakh; cash and cash equivalents ended FY19 at ₹10,198.03 lakh.

Outlook and guidance

• Management remained optimistic on domestic and global opportunities, citing R&D, process design, manufacturing capabilities, and customer and vendor relationships.

• A 32,000 TPA Ambernath facility was completed in June 2019; phased production was planned, with full operation targeted by October 2019.

• A 10,000 TPA Patalganga food-additives facility was targeted for completion by Q2 FY21, subject to regulatory approvals.

• A 10,000 TPA Germany JV facility was expected to commence operations in FY22, subject to regulatory approvals; feed nutrition and other specialty additives were areas of opportunity.