Jubilant Ingrevia Q3 PAT slides 29% YoY to Rs 92 cr

On consolidated basis, Jubilant Ingrevia's net profit tumbled 29% to Rs 92 crore on 10.16% decline in revenue from operations to Rs 1,152.63 crore in Q3 FY23 over Q3 FY22.

Profit before tax slipped 34.93% to Rs 121.60 crore in Q3 FY23 compared with Rs 186.87 crore in Q3 FY22.

EBITDA declined 29% to Rs 158 crore in Q3 FY23 as against Rs 222 crore in Q3 FY22. EBITDA margin stood at 13.7% in Q3 FY23 compared with 17.3% in corresponding quarter last year.

Overall revenue is 10% lower on YoY basis, mainly on account of lower sales performance of nutrition & health solution business, while volumes in specialty chemicals products and acetic anhydride continue to improve.

Revenue from specialty chemicals grew by 34% YoY to Rs 468 crore in Q3 FY23, driven by higher price realization and volume growth across product segments. Share of revenue to customers having agro chemical end use has shown significant growth.

Revenue from nutrition business de-grew YoY by 39% to Rs 132 crore in Q3 FY23, on account of lower demand, due to prolonged impact of bird and swine flu in EU and US regions, leading to lower realization.

Revenue from chemical intermediates de-grew by 23% on YoY to Rs 559 crore in Q3 FY23, mainly driven by lower price of feed stock (ie Acetic Acid) leading to lower realization of finished products i.e. Acetic Anhydride & Ethyl Acetate. The company has further improved its market share and volumes of Acetic Anhydride in EU region on YoY.

Specialty Chemicals segment would continue to grow. Overall our FY23, full year performance is expected to remain in line with our last three quarters. We are fully committed towards our growth aspirations and we are excited to realise the emerging opportunities through our ongoing Growth Capex plan, which we have now improved from earlier Rs 2,050 crore to now Rs 2,275 crore during FY22 to FY25 Period. We continue our efforts towards improving our revenue mix of specialty and nutrition segments to 65% by FY27 from 44% in FY22 and we believe this to be a key driver for overall EBIDTA and Margin improvements, the company stated in exchange filing.

The board of directors declared interim dividend of Rs 2.50 per equity share. The record date for the same is fixed on 10 February 2023.

Shyam S Bhartia, chairman and Hari S Bhartia, co-chairman, Jubilant Ingrevia said, "We are pleased to inform that our Specialty Chemicals Business revenue grew by 34% YoY and absolute EBIDTA grew by 15% YoY driven by higher volumes and improved price realization.

In Nutrition & Health Solution business the demand of Niacinamide (Vitamin B3) continue to be subdued impacting our price realization though we have improved our volumes sequentially. The demand related challenges of Vitamin B3 are short-term and we continue to remain focused towards improving our presence in food and cosmetics segment. In chemical intermediates business the revenue on YoY basis is impacted due to lower prices of feed stock (Acetic Acid), leading to lower sales prices of Acetic Anhydride and Ethyl Acetate.

The company has firm plans to significantly reduce overall energy cost in phased manner through various initiatives by sourcing power from Grid and renewable sources, optimizing coal consumption through efficiency improvement in consumption as well as in generation. We continue to focus on our growth plans through new products and platforms and we are committed to deliver robust growth in the future."

Jubilant Ingrevia is a global integrated life science products and innovative solutions provider serving, pharmaceutical, nutrition, agrochemical, consumer and industrial customers with its customised products and solutions that are innovative, cost effective and conforming to premium quality standards. The company is engaged in manufacturing and supply of speciality chemicals, nutrition & health solutions and chemical intermediates through five manufacturing facilities in India.

The scrip surged 4.25% to Rs 493 on the BSE.

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