• Total Revenue from Operations of the Company grew by ~44% to ~Rs. 1,769 crores in Q2 FY19, primarily driven by improved performance of TAN and Specialty Fertilizers businesses.
• Operating EBITDA was ~Rs. 115 crores in Q2 FY19 compared to ~Rs. 145 crores in Q2 FY18
• PAT for the quarter stood at ~Rs. 19 crores in Q2 FY19 as compared to ~Rs. 43 crores in Q2 FY18
• Profitability was adversely impacted due to rupee depreciation & significant rise in raw material prices:
– Profitability of IPA remained under pressure due to inability to pass through higher raw material cost (RGP up by ~47% y-o-y ) on account of import price parity
– Higher global prices of phosphoric acid and LNG, and a lag in transferring its impact in the new MRPs have led to the underperformance of the segment in the quarter. Lower availability of phosphoric acid also led to lower capacity utilization.
• Continued to consciously consolidate trading portfolio in Industrial Chemical and focus on high-margin products
• Availability of phosphoric acid is expected to improve in H2 FY2019 as acid from alternate sources have been successfully tested in the plant. This is expected to improve the capacity utilization of fertilizer plant by 45-50% in H2FY19 as compared to H1FY19.
• Increase in MRP realizations in Fertilisers business would gradually be undertaken in line with the industry.
• Expansion for Nitric Acid capacities at Dahej is progressing as per plan; expected to be operational by Q4 FY2019.