At 1,50,000 TPA, CPVC capacity will be increased to the biggest plant in the world, and epichlorohydrin will be 1,00,000 TPA is the biggest plant in the nation.
The top integrated chemical producer in India, Epigral Limited (Epigral), today revealed its fiscal results for the quarter that concluded on September 30, 2024. In Q2FY25, the firm reported a strong increase in PAT of 81 Crore, a 111% increase over Q2FY24’s ₹38 Crore. The business saw a 32% increase in quarterly sales. compared to ₹ 479 Crore in Q2FY24, to ₹ 632 Crore.
Expansion and Capex
The CPVC and Epichlorohydrin (ECH) expansion project has been accepted by Epigral’s board. CPVC resin capacity will be expanded to 1,50,000 TPA (Tonnes Per Annum) by adding another 75,000 TPA capacity and Epichlorohydrin (ECH) capacity will be enhanced to 1,00,000 TPA by adding another 50,000 TPA capacity, at the company’s Dahej facility in Gujarat.
Epichlorohydrin will become the largest plant in India and Epigral’s overall CPVC resin capacity will be increased, making it the largest resin factory globally.
The expansions of CPVC and ECH will satisfy India’s rising demand for these goods. The company’s decision to increase its production of CPVC resin and ECH is in line with the government of India’s Make in India and Atmanirbhar Bharat programs, which are meant to increase India’s level of independence.
Epigral will invest in Pure.rBrineTM technology, which recycles and reuses by-products as a raw material for other goods, with an emphasis on sustainability and the environment. This will lessen greenhouse gas emissions from the whole supply chain and save waste disposal. Additionally, the business will profit from cost rationalisation because using the by-product as a raw material strengthens the integrated complex.
Mr. Maulik Patel, Chairman and Managing Director of Epigral, commented on the results, saying: “Epigral saw a 37% increase in topline growth in H1FY25, on account of a 17% increase in sales volume coming from high value products of the Derivatives and Speciality business, despite a slight decline in realisations for all the products.” Contribution to revenue increased to 59% in Q2FY25 from the Derivative and Speciality division, up from 46% in Q2FY24.
“We at Epigral are committed to ongoing expansion and launching goods in India for the first time. Accordingly, we imported replacement items and ventured into CPVC and ECH. Considering the acceptance of our product, market size and growing demand for both the products, we are excited to further expand in both the products and double it from our current capability. The additional capacities are expected to get commissioned by H1 of FY2027 and these projects are expected to contribute FY2027 onwards. Our strategy to diversify into value added products, strengthening our integrated complex and sustained investment in capex will help us efficiency of scale and create
value for our shareholders,” Mr Patel added.
The significant features of the performance:
H1FY25 Strategic Update:
o Epigral invested ₹79 crore in capital expenditures during H1FY25.
o The board of Epigral has authorised doubling the company’s capacity for CPVC resin and epichlorohydrin (ECH).
o By adding a further 75,000 TPA, the capacity of CPVC resin will reach 1,50,000 TPA.
o By adding an extra 50,000 TPA, the capacity of epichlorohydrin will reach 1,00,000 TPA.
o Through QIP, Epigral was able to raise 333 crore. The money will be useful to support the company’s expansion objectives.
o Epigral put 45,000 TPA of extra CPVC resin capacity into service in April 2024. Reached total capacity
o up to 75,000 TPA Epigral commissioned the CPVC compound factory in June 2024.
Operational Highlights for Q2FY25:
o Sales volume increased 6% year over year, mostly due to the derivatives and speciality business
o Capacity utilisation was 83% in Q2FY25 compared to 77% in Q2FY24.
o YoY realisations decreased for every product, with the exception of chloromethanes, by 1% to 7%.
o The realisation of Caustic Soda decreased by 9% QoQ. A little improvement in realisation for value-added items
Financial Highlights for Q2FY25:
o Revenue was ₹ 632 Crore, up 32% year over year due to the volume rise from derivative products.
o The Derivatives & Speciality business contributed 59% of revenue in Q2FY25, up from 46% in Q2FY24.
o EBITDA increased by 65% year over year to ₹ 178 crore from ₹ 108 crore in Q2FY24.
o The EBIDTA margin increased to 29% in Q2FY25 from 23% in Q2FY24 due to increased utilisation and volume contributions from newly commissioned projects.
o PAT increased by 111% to 81 crore rupees. PAT margin increased to 13% from 8% in Q2FY24; ROCE
o increased to 24% on September 30, 2024, from 21% on September 30, 2023.
o From 1.8x on September 30, 2023, to 1.4x on September 30, 2024, net debt to EBITDA
Operational Highlights for H1FY25:
oSales volume increased 17% year over year, primarily due to the derivatives and speciality business
o Capacity utilisation was 83% in H1FY25 compared to 74% in H1FY24.
o All items’ realisations decreased in H1FY25 compared to H1FY24.
Financial Highlights for H1FY25: o Revenue was ₹1,285 Crore, up 37% due to the volume expansion of derivative products.
o The Derivatives & Speciality business contributed 56% of revenue in H1FY25, up from 42% in H1FY24.
· EBITDA increased by 75% to ₹ 355 crore from ₹ 203 crore in H1FY24.
Due to increased utilisation and volume contributions from newly commissioned projects, the EBIDTA margin was 28% in H1FY25 compared to 22% in H1FY24. PAT increased by 139% to ₹ 166 Crore. PAT margin increased from 7% in H1FY24 to 13%.