Styrenix Performance Materials (506222) Q4 23/24 earnings summary

Executive summary

• Achieved sales volume of 165 KT in FY 2023-24, up 10.74% year-over-year; production increased by 12.2%.

• Revenue from operations was ₹2,222.17 crore, down from ₹2,372.27 crore in FY 2022-23, mainly due to lower global feedstock and polymer prices.

• EBITDA remained stable at ₹272.80 crore (12.3% margin), compared to ₹290.31 crore (12.2%) last year, reflecting operational efficiency and cost optimization.

• Net profit after tax was ₹173.17 crore, compared to ₹183.01 crore in the previous year.

• Two new brands, STYROLOY and ASALAC, were launched to drive value-added growth and import substitution.

Financial highlights

• Total income: ₹2,231.43 crore (FY 2023-24) vs. ₹2,387.37 crore (FY 2022-23).

• EBITDA: ₹272.80 crore (12.3% margin) vs. ₹290.31 crore (12.2%).

• Profit before tax: ₹233.26 crore vs. ₹246.96 crore.

• Net profit: ₹173.17 crore vs. ₹183.01 crore.

• EPS: ₹98.47 vs. ₹104.07.

• Dividend per share: ₹98 (including two interim dividends and proposed final dividend of ₹28 per share).

• Net worth per share: ₹411 (up from ₹406).

• Return on net worth: 24.1% (up from 23.4%).

• Current ratio: 2.71 (up from 2.30).

• Interest coverage ratio: 85.89 (up from 50.71).

• Long-term debt-equity ratio: 0.01.

Outlook and guidance

• Polymer demand in India expected to grow 9-10% annually, outpacing GDP growth.

• Automotive and household segments projected to remain strong, with automotive growth at 7-10% y-o-y.

• ABS market in India estimated at 300 KT in FY 2023-24, with a CAGR of 9% until FY 2030; polystyrene market at 280 KT, CAGR of 5%.

• Ongoing capacity expansion: ABS to reach 210 KT and PS to 150 KT over the next 2-3 years.

• Continued focus on R&D, value-added products, and sustainability initiatives.