Bodal Chemicals Limited – Investor Presentation Summary

Key Operational Highlights

  • Achieved total revenue of ₹7,152 mn in Q1 FY27, representing 56% YoY growth
  • Major raw materials are linked to crude oil, with increased prices passed through to customers due to better demand
  • Integrated model and cascading effect resulted in better realization across divisions
  • Benzene downstream division at Saykha has started contributing to topline during the quarter
  • Improved volumes across divisions and pass-through of higher raw material costs expected to maintain revenue and margins in near term

Segment-wise Performance

  • Dye Intermediates: Revenue grew 44% YoY to ₹2,166 mn, driven by improved realization and volume
  • Dyestuff: Revenue grew 23% YoY to ₹1,490 mn, with improved realization helping absorb raw material pressure
  • Basic Chemicals: Revenue grew 89% YoY to ₹839 mn, mainly due to increase in its main raw material Sulphur
  • Chlor Alkali: Revenue reported at ₹870 mn, growth of 3% YoY

Financial Highlights

Revenue: ₹7,151.9 mn

EBITDA: ₹751.0 mn

PAT: ₹303.8 mn

EPS: ₹2.4

Margins: EBITDA Margin 10.5%, PAT Margin 4.2%

YoY comparison: Revenue growth 56.1%, EBITDA growth 45.4%, PAT growth 218.7%

Drivers of financial performance: Better demand enabling price pass-through, integrated model benefits, improved realization across divisions

Key Risks: Increase in crude oil prices leading to higher raw material costs

Geographical Revenue Split

Domestic vs Export Revenue: Not specified in quantitative terms

Regional Breakdown: Company has global presence with subsidiaries in Turkey, China, and Indonesia

Subsidiaries Performance

  • BCTPL (India): Sales ₹65.2 mn (vs ₹24.6 mn YoY), PAT ₹2.9 mn (vs ₹0.7 mn YoY)
  • Sener Boya (Turkey): Sales ₹64.8 mn (vs ₹46.1 mn YoY), PAT ₹21.5 mn (vs loss of ₹7.4 mn YoY)
  • Bodal-China: Sales ₹10.9 mn (vs ₹79.5 mn YoY), PAT loss of ₹0.1 mn (vs profit of ₹2.5 mn YoY)
  • Bodal-Indonesia: Sales not reported (vs ₹21.6 mn YoY), PAT ₹0.0 (vs loss of ₹0.1 mn YoY)

Balance Sheet Snapshot

Not specified in the presentation

Capex & Cash Flow Health

Not specified in the presentation

Strategic & R&D Initiatives

  • Expanding Benzene downstream products division with expected gradual revenue growth quarter on quarter
  • Focus on integrated chemical player model with global presence across multiple products
  • Moving from integrated dyestuffs player to niche value-added products

Industry Trends & Business Environment

  • China +1 strategy creating opportunities for Indian chemical companies
  • Structural shift with unorganized players declining in Dye Intermediates and Dyestuffs industry
  • Compliance with global environment laws becoming critical for sustainability
  • Policy changes in China eliminating small companies, making India emerging alternative supplier
  • Textile industry constitutes ~80% of total Dyestuffs demand, expected to recover gradually
  • Gujarat has over 75% market share in Dyestuff Industry in India

Management Commentary & Growth Outlook

  • Expect gradual revenue growth from Saykha's Benzene downstream products division with meaningful contribution quarter on quarter
  • Improved volumes across divisions and pass-through of higher raw material costs expected to maintain revenue and margins in near term
  • Company positioned to benefit from India's emerging role as alternative chemical supplier to global market

Manufacturing Facilities

  • 21 operating plants across multiple locations including Vatva, Saykha-Bharuch, Kosi, Vadodara, Khambhat, and Rajpura
  • Production capacity includes regrouped 6000 MTPA of Beta Napthol from Basic Chemicals to Dyes intermediates
  • ~40% of Dye Intermediates output consumed internally by Dyestuffs division, providing cost-competitive advantage

Environmental Compliance

  • Multiple pollution control systems including Effluent Treatment Plants, Multiple Effect Evaporator Plant, Brine Treatment Plant, and Effluent Spray Dryer Plant
  • Zero liquid discharge at several units
  • 5 MW Co-generation lignite-based & 1.73 MW steam-based captive power plant
  • Received Second prize in National Energy Conservation Awards 2024 for Chlor-Alkali sector
  • Multiple certifications including ISO 9001:2015, ISO 14001:2015, Bluesign, GOTS, ZDHC, ISO 45001:2018

Awards & Recognition

  • Multiple awards from CHEMEXCIL, Gujarat Dyestuffs Manufacturers Association, and Dyestuffs Manufacturers' Association of India
  • Recent awards include Second prize in National Energy Conservation Awards 2024 and recognition for outstanding performance in domestic market