Laxmi Organic Industries is a leading manufacturer of acetyl intermediates and speciality intermediates. Its products are currently divided into two broad categories viz. acetyl intermediates and speciality intermediates. Acetyl intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol and other proprietary solvents while speciality intermediates comprise ketene, diketene derivatives viz. esters, acetic anhydride, amides, arylides and other chemicals.
In Q1FY22, the company’s consolidated operating revenues grew 82 per cent year-on-year (YoY) to Rs 736 crore.
The strong growth in revenues was fueled by the growth in acetyl intermediates (AI) and specialty intermediates (SI).zThe robust performance in the AI business was attributable to higher realisations, whereas the SI business was driven by both volume and pricing. The demand from end-user industries also remained strong.
This resulted in corresponding growth of 246 per cent and 379 per cent YoY basis in Ebitda (earnings before interest, taxes, depreciation, and amortization) and profit after tax (PAT), respectively. Similarly, the Ebitda and PAT grew by 128 per cent and 181 per cent, respectively on a sequential basis. Ebitda margin expanded by 933 basis points (bps) to 19.73 per cent for the quarter.
Commenting on the outlook, Laxmi Organic said that ongoing capital expenditures at the speciality manufacturing site will be delayed due to the flood. However, the fluorochemicals site has been relatively unaffected and the ongoing capex plans at Lote Parshuram site remain on track.
Q1 has given a good start to the company, however, the market started to correct in the second quarter. Supported by the robust first quarter, the company said it remains focused to achieve FY22 annual business plans despite the flood-related disruptions.
The government’s Vision 2034 for the chemicals and petrochemicals sector, Atmanirbhar Bharat and the PLI schemes will foster the strengthening of domestic manufacturing, reduction in imports and attracting investments in the chemicals sector, it added.
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