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Gujarat Fluorochemicals Ltd.

BSE: 500173 Sector: Industrials
NSE: GUJFLUORO ISIN Code: INE538A01037
BSE LIVE 15:40 | 21 Sep 720.10 10.90
(1.54%)
OPEN

708.10

HIGH

724.90

LOW

696.05

NSE 15:55 | 21 Sep 719.25 8.65
(1.22%)
OPEN

718.95

HIGH

724.00

LOW

695.05

OPEN 708.10
PREVIOUS CLOSE 709.20
VOLUME 3850
52-Week high 866.60
52-Week low 451.00
P/E 45.81
Mkt Cap.(Rs cr) 7,914
Buy Price 0.00
Buy Qty 0.00
Sell Price 719.90
Sell Qty 2.00
OPEN 708.10
CLOSE 709.20
VOLUME 3850
52-Week high 866.60
52-Week low 451.00
P/E 45.81
Mkt Cap.(Rs cr) 7,914
Buy Price 0.00
Buy Qty 0.00
Sell Price 719.90
Sell Qty 2.00

Gujarat Fluorochemicals Ltd. (GUJFLUORO) - Chairman Speech

Company chairman speech

Dear Shareholders

We are delighted to present to you to our 28th Annual Report of your Companyfor the Financial Year 2014-15. This year has been a milestone in making GFL one of themost successful promoters in the Initial Public Offerings (IPO) market. The key highlightof the year was the public issue of our wind energy business with the launch of Inox WindLimited (IWL) as a listed company in March 2015. The issue received an over-whelmingresponse from all categories of investors witnessing an over-subscription of 18.6 times.We extend a warm welcome to each investor to the Inox family and express our sincerethanks for making the IPO a grand success.

We are delighted to share with you the progress made in all our businesses in theFinancial Year 2014-15.

Consolidated Operational and Financial Highlights:

At the consolidated level our total revenues increased by 54.74% from Rs 345154Lakh in FY2013-14 to Rs 534081 Lakh in FY2014-15. Our EBITDA and other income increasedby 73.03% from Rs 59815 Lakh in FY2013-14 to Rs 103501 Lakh in FY2014-15. Our

PAT improved by 214.48% from Rs 1861.02 Lakh in FY2013-14 to Rs 5852.65 Lakh inFY2014-15. PAT margin at a consolidated level has improved from 5.40% to 11.00%. We arepleased to say that these results are the outcome of robust performance from each of ourbusiness verticals. The break-up of our consolidated revenues comes from the four keysegments the chemicals business the wind turbine manufacturing business the filmexhibition business and the wind farming business which contributed 25% 51% and 19% and5% to total revenues respectively.

Chemicals Business:

We are pleased to inform you that we performed reasonably well across all our productsegments within our chemicals business.

Looking at the financial performance of our chemicals business on a standalone basiswe are pleased to inform you that revenues rose by 15.78% from Rs 114094 Lakh inFY2013-14 to Rs 132097 Lakh in FY2014-15. In parallel our EBITDA and other incomeimproved by 46.56% from Rs 18977 Lakh in FY2013-14 to Rs 27812 Lakh in FY2014-15signifying an improvement in EBITDA margin from 17% to 21%. Our PAT went up by 414% fromRs 7443 Lakh in FY2013-14 to Rs 38235 Lakh in FY2014-15 with PAT margins improving from7% to 29%. The strong growth in revenues resulted from a combination of the introductionof specialty chemicals and exports of refrigerants along with improvements in margins dueto higher operating leverage and efficiencies.

In our chemicals business at GFL we are reaching an inflection point where our sizescale operational efficiencies investments made in marketing efforts and highvalue-added manufacturing is placing us in a sweet spot for increasing market share in theglobal markets. As we grow our customer base and start seeing the fruits of our effortsonafter Tax fell 46% fromdeveloping high-value products and getting customer approvals forour various grades we are well positioned to deliver superior business performance withall our KPIs improving steadily.

Our integrated manufacturing capability and size will continue to give us economies ofscale and keep us competitive in the PTFE marketplace. With this we expect capacityutilisation to improve from our current levels of around 60% to reach near-full capacityutilisation over the next 2-3 years. Higher capacity utilisation and increasedcontribution from the higher value-added PTFE grades will result in a positive operatinglevel and improvement in our operating margins. Our focus on waste recovery and other costoptimisation schemes should also bring down the operating cost across the value chain.Finally we expect good results from our focus on HF and TFE based fluoro specialtychemicals that are used by pharmaceutical and agro-chemical industries.

Wind Turbine Manufacturing Business:

IWL’s strong operating performance dynamic management team superior productquality meticulous project delivery capabilities excellent technology tie-ups and amajor thrust of the Government on renewables have made us India’s leadingmanufacturer of wind turbine generators (WTGs). Despite the sector facing challengingtimes in recent years IWL has rapidly scaled up in the last 4 years with our annual WTGsales increasing more than four-fold from 120 MW in FY2011-12 to 578 MW in FY2014-15. Thiswas possible on the back of our unflinching commitment to invest into our business evenwhile the rest of the industry is in a stagnant mode.

Our Consolidated Revenues EBITDA and PAT for FY2014-15 stood at Rs 270993 Lakh Rs45744 Lakh and Rs 29642 Lakh respectively resulting in a corresponding YoY growth of73.00% 159.50% and 124.10% and a CAGR growth of 147.8% 150.1% and 160.9% respectivelyover the last five years. We have a good visibility of a strong order book of 1178 MWwith a diversified and reputed clientele and a land bank equivalent to 4402 MW. Our 100meter rotor diameter turbine is expected to be a game changer in the wind industry inIndia. With the expansion of our manufacturing facilities and project execution teams andwith new product launches we expect to be amongst the top of the industry players.

Film exhibition Business:

At Inox Leisure Limited (ILL) despite indifferent content we were able to deliverrelatively good performance essentially due to our focus on strengthening non-box-officerevenues during the year. Our Consolidated Revenues increased 17% to Rs 10168.10 Lakhfrom Rs 8688.3 Lakh in FY2013-14. EBITDA increased by 1% from Rs 12196 Lakh in FY2013-14to Rs 12277 Lakh in FY2014-15 whereas Profit Rs 369.4 Lakh from FY2014-15 to Rs 200.4Lakh in FY2013-14. We opened 9 properties with 27 screens during the year. We acquired theregional cinema chain Satyam Cineplexes which has 9 properties and 38 screensoperational and currently have a pipeline of 40 properties and 180 screens.

Wind Farm Business:

Inox Renewables Limited (IRL) has a present portfolio of 233 MW installed capacity inthree different States Rajasthan

Maharashtra and Tamil Nadu. These projects fall under the annuity business with stableassured returns and rely on internal strength. IRL’s revenues have increased by 9%from Rs 17324 Lakh in FY2013-14 to Rs 18883 Lakh in FY2014-15. EBITDA increased by 12.9%from Rs 15566 Lakh in FY2013-14 to Rs 17581 Lakh in FY2014-15whereasProfitafter Taxdecreased by 70.8% from Rs 1537 Lakh in FY2013-14 to Rs 448 Lakh in FY2014-15.

Concluding Remarks

Our leadership team thrives on challenges in staying relevant in today’s dynamicbusiness scenario. We continue to drive innovation and push for growth in each of ourbusinesses and stand firm in our commitment to build a sustainable business delivervalue to all our stakeholders and serve India’s vibrant economy. Your Company has agreat formula for growth with a healthy outlook book across all its businesses and astrong balance sheet. We take this opportunity to thank our shareholders and our employeesfor their continuous support in our journey.

Thank You

Vivek Jain

Managing Director