Q1 2027 Privi Speciality Chemicals Ltd Earnings Call Transcript
Key Points
- Revenue grew 19.22% year-on-year to INR666 crore, driven by healthy demand across domestic and international markets.
- EBITDA margin remained strong at 24.58%, with management confident of sustaining 20%+ margins going forward.
- Working capital cycle improved significantly to 108 days from 141 days in the previous year, reflecting better operational efficiency.
- The company is on track with its expansion plans, with Phase 1 capacity increase to 54,000 metric tons expected shortly and Phase 2 to 66,000 metric tons by September 2027.
- The Prigiv JV with Givaudan is progressing well, achieving profitability in Q4 FY26 and planning additional capacity with a fresh INR50 crore equity infusion.
- Gross margin declined by approximately 650 basis points year-on-year to 44.2%, due to higher raw material costs and a less favorable product mix.
- Phase 1 capacity expansion was delayed, with the 6,000 metric ton addition now expected by September 2026 instead of June 2026.
- Alpha pinene prices have risen 70-80% in the last five months, creating input cost pressure, though the company has some mitigation through back-to-back contracts.
- The company faces potential geopolitical risks, including the Red Sea crisis and Iran war, which could impact freight costs and raw material availability.
- The merger with Privi Fine Sciences and Privi Biotechnologies is still pending NCLT approval, with completion expected only by the end of the financial year.
Ladies and gentlemen, good day and welcome to the Privi Specialty Chemicals Limited Q1 FY27 Earnings Conference Call. (Operator Instructions)
From the management, we have with us Mr. Mahesh Babani, Chairman and Managing Director of the company, Mr. R. S. Rajan, President of the company, Mr. Narayan S. Iyer, Chief Financial Officer of the company, Mr. Sanjeev Patil, Executive Vice President, Strategy and Biotechnology, Ms. Ashwini Shah, Company Secretary and Compliance Officer.
And before we begin the conference call, I would. Like to mention that some of the statements made during the course of today's conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on the date of this call.
These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Mr. Mahesh Babani, Chairman and Managing Director of Previous Specialty Chemicals.
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