PL First Cut – Laxmi Organic Industries (LXCHEM) – Q2FY24

PL First Cut – Laxmi Organic Industries (LXCHEM) – Q2FY24 – Swarnendu Bhushan – Co – Head of Research, Prabhudas Lilladher Pvt Ltd

Laxmi Organic Industries (LXCHEM) – Q2FY24 Result Highlights – Weak performance yet again | CMP Rs252 | MCap Rs69.3bn*

■ Revenue at Rs6.5 bn 0% YoY/ -11% QoQ (PLe ~Rs7bn).

■ EBITDA at Rs389mn +36% YoY/ -49.7% QoQ (PLe Rs734mn/consensus esti – Rs 500mn) on lower other expenses (-11% YoY). EBITDA margin of 6% (vs 4.4% in Q2FY23 and 10.5% in Q1FY24; PLe ~9%). We expected YoY improvement in margin led by ramp up in long term project in Specialty Intermediates (higher margin); await clarity from the management.

■ PAT at Rs108mn (+25% YoY/ -70% QoQ; PLe Rs356mn consensus esti – Rs 200mn) was impacted by lower operating profits QoQ

We currently have ‘Reduce’ rating with SoTP based TP at Rs 252;