Vishnu Chemicals Declares Robust Top-Line & Bottom-Line Growth

BY Realty+

Vishnu Chemicals Limited manufacturer of specialty chemicals has announced its earnings growth for the quarter and half year ending on 30th September 2022. Vishnu Chemicals continues to report record quarterly sales, EBITDA & PAT. Consolidated domestic and export sales continued their growth trend, growing by 57% and 53% YoY. Expansion of over 245+ bps in EBITDA margin YoY and +250 bps in PAT margin YoY in Q2FY23.

Focus on manufacturing had led the company to be a global leader in terms of gross asset turnover and ROCE amidst peers. Gross asset turnover & ROCE reached the highest levels of 2x and over 35% respectively.  Debt to equity reduced to 1.0 from 1.3 in FY22. The company continues to improve its working capital efficiency resulting in a reduction in inventory and debtor days. The board approves the 1:5 stock split.

Standalone domestic and export sales continue their growth trend, growing by 64% and 62% YoY. Debottlenecking has led to a capacity increase of 10,000 TPA, an increase of ~14% on our existing plate capacity. Production started from Q2FY23. EBITDA generated has increased by 126% YoY and 10% QoQ. Reduced D/E to 0.99 while Interest Coverage Ratio expands to 7x. Standalone ROCE is at 40%.

The company is focused on balancing its sales mix geographically by increasing its market share in India which would mitigate geography risk in the long term. Brownfield’s expansion to introduce a new specialty chemical to aid Barium portfolio diversification is on track and is expected to be commissioned by H1FY24. In the commissioning stage, solar power capacity under the OPEX model is on track and is expected to be completed in H2FY23. 

“Commenting on the performance, Ch. Krishna Murthy, CMD, Vishnu Chemicals Limited, said, “We are delighted to announce stellar growth for the second quarter in a row. Due to its diverse product and application mix, Vishnu has demonstrated resilience in the face of a challenging macro environment. In the second quarter, we continued to showcase our ability to make progress on our clear operational priorities. With our targeted investments, we will continue to drive long-term growth above market rates by providing value to our customers around the world.”

Ch. Siddartha, JMD, Vishnu Chemicals Limited, added, "I am pleased with our execution in the second quarter, as we focused on productivity for our customers in their difficult times, which has never been more important than it is today." However, there is still a substantial amount of work to be done. Our ROCE levels and working capital efficiencies have clearly demonstrated that we are the most efficient producer in our chemistries globally, which we will continue to monitor and improve. We have industry-leading expertise, a global footprint, and well-defined priorities with plenty of room for expansion."

Tags : Vishnu Chemicals Limited manufacturer chemicals growth Ch. Krishna Murthy CMD Vishnu Chemicals Limited Ch. Siddartha JMD Vishnu Chemicals Limited