Fine Organic Industries (FINEORG) Q4 19/20 earnings summary

Executive summary

• FY20 standalone revenue declined 1.7% amid lockdown effects, while EBITDA rose 6.22% and PAT increased 29.06%; new Ambernath capacity started production.

• COVID-19 caused a brief shutdown from March 23, 2020; operations resumed with limited workforce on March 31, with sales volumes recovering as restrictions eased.

• The portfolio spans 400+ specialty additives across food, plastics, cosmetics, coatings, rubber and other applications, supported by 18 R&D scientists and technicians.

Financial highlights

• Standalone operating revenue was ₹102,622.30 lakh vs ₹104,397.20 lakh in FY19, down 1.7%; consolidated operating revenue was ₹103,807.97 lakh vs ₹106,033.28 lakh.

• Standalone EBITDA increased 6.22% to ₹23,608.03 lakh from ₹22,225.17 lakh; EBITDA margin improved to 23% from 21.29%.

• Standalone PAT rose 29.06% to ₹16,650.17 lakh from ₹12,901.37 lakh; PAT margin expanded to 16.22% from 12.36%.

• Consolidated PAT was ₹16,480.01 lakh vs ₹13,625.53 lakh; consolidated basic and diluted EPS rose to ₹53.75 from ₹44.44.

• Standalone operating cash flow increased to ₹21,720.87 lakh from ₹9,718.48 lakh; cash and equivalents ended FY20 at ₹20,087.93 lakh.

Outlook and guidance

• COVID-19’s economic effects and recovery timing remained uncertain; subsequent results depend on pandemic duration, containment measures, lockdowns and supply-chain disruption.

• Patalganga construction was on track, with the planned facility dedicated to food additives for export and growing domestic markets.

• India’s sourcing appeal and the sector’s manufacturing, compliance, feedstock and skilled-labour advantages were viewed as opportunities for global specialty-chemical outsourcing.