PL First Cut – Jubiliant Ingrevia Ltd – Q2FY24

PL First Cut – Jubiliant Ingrevia Ltd – Q2FY24 – Swarnendu Bhushan – Co – Head of Research, Prabhudas Lilladher Pvt Ltd

Jubiliant Ingrevia Ltd – Q2FY24 Result Highlights – Subdued Performance | CMP Rs409 | MCap Rs65.2bn

▪️Revenue at Rs10.19 bn -21.8% YoY/ -5% QoQ (PLe ~Rs10.7bn) declined due to reduction in the revenue of Chemical intermediates led by lower pass-through of input cost of acetic acid and lower demand for Agro end-use products.

▪️EBITDA at Rs1.17bn -23% YoY/ +1% QoQ (PLe Rs 1.1bn) and EBITDA margin of 11.5% (vs 11.7% in Q2FY23 and 10.9% in Q1FY24; PLe ~10.3%).

▪️PAT at Rs574mn (-31% YoY/ -0.2% QoQ; PLe Rs500mn) was impacted by lower operating profits YoY

▪️Increase in Net Debt mainly led by steady capex expenditure and higher working capital.

▪️Higher working capital in Q2FY24 is on account of decline in payables for earlier purchases, while fresh purchases were rationalized.

Segments Highlights:

▪️Specialty Chemicals Segment witnessed YoY decline of 21% & 5% QoQ. Sequential EBITDA growth during the quarter, owing to better product mix and higher sales contribution coming from Pharma and consumer end-use, including CDMO customers.

▪️For Nutrition & health science, Revenue & EBITDA grew on YoY basis, primarily led by stable demand and improved pricing in major products.

▪️For chemical intermediates, revenues were lower on account of lower acetic acid prices and muted environment in Agrochemicalsand Paracetamol end use customers

We currently have ‘Hold’ rating with SoTP based TP at Rs 484;