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Aether Industries Ltd Q4 FY22 Earnings Conference Call Insights

Key highlights from Aether Industries Ltd (AETHER) Q4 FY22 Earnings Concall

 

Q&A Highlights:

Gagan Thareja – ASK Investment Managers – Analyst

  • Would growth get constrained due to lack of capacity for the first 3 quarters of FY23?

Rohan Desai – Whole-time Director

  • Currently at 80% of utilization.
  • Constantly debottlenecking plants.
    • Rearranging equipment to increase capacity.
  • Expects to reach 90-92% capacity in FY23.

 

Gagan Thareja – ASK Investment Managers – Analyst

  • Breakdown of sales growth into volume growth and price of sales mix for FY22?

Rohan Desai – Whole-time Director

  • Price increased by only 1.5-2% on an avg. overall.
  • Whole growth in FY22 was due to volume.

 

Gagan Thareja – ASK Investment Managers – Analyst

  • What’s the additional capacity given by the two new plants under construction, and operational and utilization time frame.

Rohan Desai – Whole-time Director

  • Site 4 gets operationalized towards end of FY23 and site 5 towards the end of FY24.
  • Both units combined would give 9,000 metric tons manufacturing capacity.
  • To be optimally utilized in two years once commissioned.

 

Yash Shah – Investec India – Analyst

  • Product portfolio outlook over the next five years?

Rohan Desai – Whole-time Director

  • Will continue to add products in the pharma and agro.
  • The eventual goal is to balance out all the buckets and make it equitable.
    • Expects non-pharma, non-agro sectors to rise in future.

 

Yash Shah – Investec India – Analyst

  • IPO proceeds utilization and capex for FY23.

Faiz Nagariya – CFO

  • Started using the IPO proceeds; paid off the loans.
  • Total capex is expected to be INR200 crore.

  

Nitesh Dhoot – Prabhudas Lilladher – Analyst

  • Reason for 18% decline in employee cost in 4Q on a sequential basis and other expenses declining 9%?

Faiz Nagariya – CFO

  • Employee costs have been capitalized for the R&D and new plants that are coming up.
  • Other expense declining is due to the plant commissioned in Jan. 2021, which is now in-house and there is lot of savings in costs.

 

Nityanand Parakh – Individual Investor – Analyst

  • Vision for next 3-5 years in terms of new products.

Rohan Desai – Whole-time Director

  • Going to launch 5 new products in FY23; advance intermediates.
  • In future would maintain the same rate of product introductions.

 

Nityanand Parakh – Individual Investor – Analyst

  • Is the new capacity fungible or a dedicated capacity for some products.

Rohan Desai – Whole-time Director

  • All of AETHER’s manufacturing facilities are fungible and multipurpose across the core competencies it’s designed for.
Tags: Chemicals
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