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.