Q3 2024 Vishnu Chemicals Ltd Earnings Call Transcript
Key Points
- Gross margins at the stand-alone level increased from 42.3% in Q2 FY24 to 43.1% in Q3 FY24, an overall increase of 75 basis points.
- The company achieved a 10% reduction in the average consumption of key raw materials compared to FY23, mitigating the impact of higher raw material prices.
- Power cost as a percentage of operating revenues reduced from 5.2% in Q2 FY24 to 4.7% in Q3 FY24.
- The newly acquired baryte beneficiation plant has stabilized, and significant benefits and cost savings are expected to flow from Q1 FY25.
- The company is set to recoup its entire investment in the backward integration project at Visakhapatnam by Q1 FY25, marking it as a significant success.
- Total income for Q3 FY24 was INR308 crores, a slight decline from INR311 crores in Q2 FY24.
- Consolidated EBITDA for Q3 FY24 was INR45 crores, down from INR49 crores in Q2 FY24, an 8% decline quarter-on-quarter.
- Consolidated PAT for Q3 FY24 was INR21 crores, down from INR24 crores in Q2 FY24, a 13% decline quarter-on-quarter.
- Depreciation surged by 89% on a year-on-year basis, exerting a short-term impact on profitability.
- The company is facing pricing pressure in the precipitated barium sulphate segment, specifically from Chinese competitors.
Ladies and gentlemen, good day, and welcome to the Q3 and nine months FY24 earnings conference call of Vishnu Chemicals Limited, hosted by Emkay Global Financial Services Limited. (Operator Instructions)
Please note that this conference is being recorded. Some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the earnings release and other filings that can be found on the company's website.
I would now like to hand the conference over to Mr. Meet Vora from Emkay Global Financial Services. Thank you, and over to you, sir.
Thank you. Good evening, everyone. We have with us from management, Mr. Cherukuri Siddartha, Joint Managing Director; and Mr. Hanumant Bhansali, VP Finance. We thank them for giving us this opportunity to host them.
I shall now handover the call to the Management for their opening remarks. Thank you and over to you sir.
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