Jubilant Ingrevia shed after Q4 PAT tumble 28% YoY to Rs 69 cr

Jubilant Ingrevia declined 3.68% to Rs 460.05 after the company reported 28% decrease in consolidated net profit of Rs 69 crore in Q4 FY22 compared with net profit of Rs 95 crore in Q4 FY21.

During the quarter, total revenue from operations stood at Rs 1,296 crore in Q4 FY22, reporting a growth of 20% from Rs 1,078 crore in Q4 FY21. Profit before tax (before exceptional items) stood at Rs 115 crore in the fourth quarter, down 28% during the period under review.

Q4 & FY21 is derived on pro-forma basis by combining reported discontinued operation results of Life Science Ingredients (LSI) segment of Jubilant Pharmova and audited results of company.

The revenue growth was driven by growth in Speciality Chemicals and Chemical intermediate product segments. Speciality Chemicals revenue grew by 35% YoY driven by volume growth across products. Chemical Intermediates revenue grew by 18% YoY, driven by higher prices of products.

Reported EBITDA decreased 25% at Rs 152 crore, mainly due to impact of Acetic acid prices on our inventory, while sharp increase in key input prices for Speciality Chemicals and Nutrition & Health Solutions segment were passed on partially till end of quarter. However overall impact of Acetic Acid price on profitability for full year FY'22 was not significant. EBITDA margin stood at 11.7% in Q4 FY22 as against 18.8% in Q4 FY21.

Commenting on the company's performance, Shyam S Bhartia, chairman and Hari S Bhartia, co-chairman of Jubilant Ingrevia said, "we delivered record financial performance during FY'2022 despite facing severe second wave of pandemic at beginning of the year and then headwinds and volatility in key input raw material and energy prices since last three quarters. We also maintained steady growth in Q4'FY22."

"In our Specialty Chemicals segment we delivered strong growth led by healthy demand across industry segment. We are also pleased to share that we successfully commissioned Phase-1 of Diketene and Derivatives manufacturing unit at our Gajraula facility. In Nutrition & Health Solution we improved our profitability due to higher price realization and improved volume in North America. In Chemical Intermediates Segment, we continued the higher sales with Pharmaceutical and Agrochemical customers and recorded healthy growth in the EU. Though profitability of the Acetyls business during Q4 was impacted due to sharp and consistent correction in Acetic Acid prices impacting our inventory, the overall impact of Acetic Acid price on profitability for full year FY'22 was not significant."

"Due to advancement in our new product pipelines & CDMO projects, we are pleased to revise our investment plan for growth projects to Rs. 2050 Crore, out of this we have already committed investment in projects worth Rs. 800 Crore till date and now we plan to invest about Rs. 1,250 Crore. to be committed between FY'23 & FY'24. These investments will be funded through internal accruals and all these new facilities should be ready for operations by FY'25."

On full year basis, the company reported a 51% increase in net profit to Rs 477 crore on a 42% rise in net sales to Rs 4,949 crore in FY22 over FY21. Revenue growth was driven by growth across business segments. PAT grew by 51% YoY driven by growth in EBITDA, aided by reduction in finance cost on account of reduction in debt and optimization of interest rates. EBITDA at Rs 863 crore, grew by 38% on account of strong performance of all the three product segments.

Gross debt reduced Rs 319 crore and net debt reduced Rs 251 crore from 31 March 2021. Net debt to EBITDA as on 31 March FY22 stands at 0.21 times, from the earlier level of 0.69 times as on 31 March 2021.

Meanwhile, the board of directors of the company has recommended final dividend of Rs 2.50 per equity share, for the financial year ended 31 March 2022.

Jubilant Ingrevia is a global integrated life science products and innovative solutions provider with over 42 years of experience offering over 165 products & innovative solutions using more than 35 key chemistry and technology platforms across its three portfolio of businesses viz acetyls, pyridines and vitamins & premixes.

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