Camlin Fine slips 17% on earnings impact due to Russia-Ukraine crises

Shares of Camlin Fine Chemicals hit a 52-week low of Rs 112.50 as they slipped 17 per cent on the BSE in Friday's intra-day trade on concerns of weak earnings due to ongoing Russia – Ukraine war. The stock of the specialty chemicals company has fallen below its previous low of Rs 116.30 touched on December 29, 2021.

Camlin Fine said the Russia – Ukraine crisis has had an adverse impact on all costs especially raw materials, logistics and power and fuel. The future impact of the situation is difficult to be assessed at this point, as the situation is unravelling at a fast pace, it said.

The continuance of this situation may lead to some impact on all other manufacturing units of the Group, but we do not expect it to be major. Company is closely reviewing the market environment and is gearing itself up for an immediate mitigation response to the adversity.

"Group's material subsidiary CFS Europe SpA which manufactures Diphenols in Italy, Europe has been severally impacted due to phenomenal increase in power costs, owing to this crisis. The normal average quarterly power cost has increased by 240 per cent in quarter ended March 31, 2022 which has resulted in an increase in power cost of around Rs 28 crore in the quarter," the company said on the impact of the Russia – Ukraine crisis on the Group.

The Group has been able to transfer some of the inflationary increase in the costs to its customers by increasing the sale prices but to a certain extent. "However, we expect to have an impact on the consolidated results of the Group for the quarter and financial year ended March 31, 2022," the company said.

The company further said it is closely monitoring the situation and would initiate appropriate steps on the quantum of production to be undertaken in CFS Europe SpA based on the diphenol prices and increasing power costs, so as to reduce the impact on the results.

As the Company is still in the process of finalising its results for quarter and year ended March 31, 2022 and the actual results thereof may differ from what is disclosed in this intimation, the company said.

For the nine months ended December 2021 (9MFY22), Camlin Fine had reported 5.2 per cent year on year (YoY) decline in its consolidated profit after tax (PAT) at Rs 47.05 crore, due to higher raw material cost. Revenue from operations grew 18.9 per cent YoY at Rs 1,023 crore. Earnings before interest, taxes, depreciation, and amortization (ebitda) margin contracted to 12.6 per cent from 15.3 per cent in 9MFY21.