Vinati Organics Q3 Review - Re-Fuelling For Growth, Valuations Factor Almost Everything: Dolat Capital

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Dolat Capital Report

Vinati Organics Ltd. reported a good sales performance registering 65.1% YoY growth to Rs 3.69 billion (our estimate: Rs 3.85 billion). Margin woes have been persistent as gross margins decline by 601 basis points YoY to 48.9%.

Ebitda growth was at 28.7% YoY to Rs 928 million. Ebitda margins stood at 25.1%, down 710 bps YoY due to higher opex at Rs 663 million, up 105.7% YoY.

Vinati Organics' profit after tax grew higher at 29.8% YoY to Rs 833 million owing to a tax reversal impending from last year, which effectively brought the tax rate down to 13%.

Acrylamide tertiary-butyl sulfonic acid sales were at ~Rs 1.84 billion (50% of sales), butyl phenols were at ~Rs 443 million (12% of sales), isobutyl benzene sales were at Rs 295 million (~8% of sales) while other products took the rest of 30% of sales.

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