Jubilant Ingrevia (JUBLINGREA) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue declined 4% YoY to ₹47,727 million; EBITDA fell 33% to ₹5,805 million and PAT declined 35% to ₹3,075 million.

• Specialty Chemicals grew 29% YoY, partly offsetting declines in Nutrition & Health Solutions and Chemical Intermediates amid weak Niacinamide demand, lower acetyl prices and higher energy costs.

Financial highlights

• Revenue from operations was ₹47,727 million vs ₹49,494 million in FY22; reported EBITDA was ₹5,805 million vs ₹8,633 million.

• PBT was ₹4,367 million, down 38% YoY; PAT was ₹3,075 million, down 35%; diluted EPS was ₹19.33 vs ₹29.97.

• EBITDA margin was 12.2% vs 17.4%; net margin was 6.4% vs 9.6%.

• Operating cash flow was ₹4,625 million vs ₹4,527 million; investing outflow was ₹4,719 million, including ₹4,814 million of property and equipment purchases.

Outlook and guidance

• Niacinamide volumes improved sequentially in Q4 FY23; recovery in global demand was expected in FY24, while agrochemical-related product headwinds were expected to ease by FY24-end.

• Speciality Chemicals expected volume-led FY24 growth from new CDMO facilities; the agro-active multipurpose facility was scheduled to commission in H2 FY24.

• Speciality Chemicals and Nutrition & Health Solutions targeted ~65% of revenue by FY27, from 50% in FY23; investments aim to lift growth and margins.

• A 3,000-tonne cosmetic-grade Niacinamide cGMP facility was approved, with completion expected in Q1 FY25; food-grade Vitamin B4 capex approval was anticipated during FY24.