Kiri Industries Limited Q3 FY23 Earnings Conference Call Insights

Key highlights from Kiri Industries Limited (KIRIINDUS) Q3 FY23 Earnings Concall

Q&A Highlights:

• [00:11:25] Manan Shah from Moneybee Investment enquired about the amount involved in the Senda legal cost. Manish Kiri MD said that the company was awarded SGD8.11 million in legal costs from Senda, which the latter failed to honor. As a result, Kiri has taken enforcement actions against Senda.

• [00:19:36] Vaibhav Badjatya at Honesty and Integrity asked if the Longsheng Group has any assets in Singapore. Manish Kiri MD answered that the main asset that DyStar has in Singapore is their shares of DyStar.

• [00:20:52] Vaibhav Badjatya at Honesty and Integrity enquired if competition from China in the dye intermediary market will come back in a sustainable manner in the next 4-5 years. Manish Kiri MD replied that Chinese imports of intermediates into India are still coming at lower prices and this pressure is expected to continue for the next 2-3 years. Going forward, the flow of imports from China may be reduced if domestic consumption increases but until then, there is likely to be a continued pressure from Chinese imports.

• [00:42:59] Saumya Kumar from Ambit Capital asked what KIRIINDUS has spent on the legal proceedings so far and if the company is planning to recover that also. Manish Kiri MD clarified that the company has spent much larger than SGD8.11 million since 2015, but court has awarded only 8.11 million.

• [00:43:45] Saumya Kumar from Ambit Capital asked about the SICC’s judgment on valuation of DyStar share and if the 553,000 tonnes is a final part of the legal proceeding. Manish Kiri MD clarified that this is the final part of deciding the final number.

• [00:45:22] Saumya Kumar from Ambit Capital asked if KIRI feels the Senda deal might not go through.  Manish Kiri MD replied that there is doubt and suspicion that Senda will not be able to pay the 600 million buyout order since they have yet to pay a small amount of legal costs.

• [00:55:10] Namit Mehta from KC Capital enquired about having dividend from Lonsen Kiri in 3Q and the expectation going forward. Manish Kiri MD answered that the dividend was requested by Kiri and approved by the Board and then given of INR6.86 crores. Kiri expects the practice to continue.