Fine Organic Industries (FINEORG) Q4 20/21 earnings summary

Executive summary

• FY21 revenue grew, but sharp vegetable-oil inflation compressed profitability; EBITDA and PAT declined YoY.

• Operations recovered as lockdowns eased; the first phase of Patalganga was commissioned, while a Thailand JV was agreed after year-end.

Financial highlights

• Standalone revenue from operations rose 9.26% to ₹112,129.01 lakh; EBITDA fell 18.64% to ₹19,206.95 lakh.

• Standalone EBITDA margin declined to 17.13% from 23.00%; PAT fell 30.97% to ₹11,493.18 lakh and PAT margin to 10.25% from 16.22%.

• Consolidated revenue from operations increased to ₹113,321.84 lakh from ₹103,807.97 lakh; consolidated PAT was ₹12,034.13 lakh versus ₹16,480.01 lakh.

• Standalone PBT was ₹15,623.88 lakh versus ₹21,715.95 lakh; basic and diluted EPS were ₹37.49 versus ₹54.31.

Outlook and guidance

• Long-term growth focus remains on expanding the product portfolio, entering new application areas and capturing global demand through R&D, manufacturing capabilities and customer relationships.

• Management expects the second COVID-19 wave to dampen India’s recovery; vaccination, restrictions, global recovery and policy measures will shape the outlook.