Q1 2027 Nocil Ltd Earnings Call Transcript
Key Points
- Revenue from operations grew 20% YoY to INR403 crores, driven by a 9% volume increase and higher selling prices.
- EBITDA surged 48% YoY to INR45 crores, with margins expanding 210 basis points YoY to 11.2%.
- Profit after tax rose 61% YoY to INR28 crores, reflecting strong operational performance.
- Domestic volumes registered double-digit growth, supported by improved demand from GST 2.0 implementation.
- The government approved anti-dumping duty on sulphonamides (CBS and NS) in June 2026, which is expected to benefit pricing and market position.
- Trial production at the new TDQ plant in Dahej is progressing well, with customer samples initiated and commercial supply expected to ramp up.
- The company maintains a positive demand outlook for the tire industry, driven by strong replacement demand and healthy OEM offtake.
- Management expects revenue for FY27 to be in the range of INR1,400-1,600 crores, with EBITDA margins around 10%.
- The new INR130 crore investment in Dahej is on track despite geopolitical challenges, supporting future product portfolio expansion.
- Export volumes recorded single-digit growth, driven by successful conversion of customer engagements into business gains.
- Sequential volumes declined 3% QoQ due to temporary supply-side constraints, logistical challenges, and geopolitical disruptions.
- The non-tire segment experienced a temporary contraction due to lower production from increased input costs and labor shortages caused by cooking gas shortages.
- Global markets continue to face geopolitical uncertainties, supply chain disruptions, and a competitive pricing landscape.
- Raw material costs increased, leading to higher selling prices and potential margin pressure if not fully passed through.
- The anti-dumping duty on Pilflex 13 is still pending government approval, with an uncertain outcome.
- The company faces continued uncertainty in raw material pricing and availability due to geopolitical tensions.
- Chinese competitors continue to adjust prices downward, and rubber chemicals still enjoy export subsidies, intensifying competition.
- The company expects some moderation in demand in the near term due to seasonal factors and monsoon progress.
- The promoter holding has been pledged by around 24%, raising concerns among investors.
- The company could not quantify inventory gains during the quarter, and the full benefit of anti-dumping duties is yet to be realized.
Ladies and gentlemen, good day, and welcome to the Q1 FY27 NOCIL Limited conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. V.S. Anand, Managing Director from NOCIL Limited. Thank you, and over to you, sir.
(technical difficulty) and on our company's website. Let me begin by providing an overview of the company.
Sorry to interrupt you, sir. We missed the start. Can you please start again?
Yeah, okay. I will, yeah, thank you. Good morning to everyone. I'd like to start by expressing my
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
