Q3 2025 Apcotex Industries Ltd Earnings Call Transcript
Key Points
- Apcotex Industries Ltd (BOM:523694) achieved its highest ever quarterly revenue of INR355 crore, marking a 38.2% year-on-year growth.
- The company reported a significant increase in export volumes, with a 30% year-on-year growth, indicating strong international demand.
- Capacity utilization for the nitrile plant in Valia reached 75%, and the new SDR capacity in Taloja is at 60% to 65%, showing efficient use of resources.
- The company is seeing a rebound in demand for nitrile latex due to US tariffs on Chinese gloves, which is expected to improve margins.
- Apcotex Industries Ltd (BOM:523694) has a strong balance sheet with net borrowings of only INR90 crore against a turnover of INR1,400 crore, indicating financial stability.
- EBITDA margin for the quarter was 7.63%, which could have been higher by 1% to 1.5% but was impacted by a steep fall in raw material prices.
- The nitrile latex segment is currently operating at break-even or slightly above, with margins significantly lower than pre-COVID levels.
- The company faces competitive pressures in the SP latex business due to increased capacities by competitors, affecting pricing power.
- The NBR segment is experiencing margin pressure due to increased competition from Korean and Russian imports.
- Freight rates have impacted margins, particularly in the carpet segment, although there is some improvement expected.
Ladies and gentlemen, good day and welcome to Apcotex Industries Limited Q3 FY25 earnings conference call hosted by Valorem Advisor. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Ms. Nupur Jainkunia. Thank you and over to you, Ms. Jainkunia.
Thank you. Good afternoon, everyone and a warm welcome to you all. My name is Nupur Jainkunia from Valorem Advisors. We represent the investor relations of Apcotex Industries Limited.
On behalf of the company, I would like to thank you all for participating in the company's earnings call for the third quarter and nine months of financial year 2025. Before we begin a quick questionary statement, some of the statements made in today's con call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated, such statements are based on management's beliefs as well as assumptions made
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