Navin Fluorine Q3 Results: Profit Falls 27%, But Beats Estimates

The company's net profit dropped to Rs 78.02 crore in Q3, as against Rs 106.56 crore over the same period last year.

<div class="paragraphs"><p>Chemical solutions in glassware sit inside a laboratory. (Source: Freepik)</p></div>
Chemical solutions in glassware sit inside a laboratory. (Source: Freepik)

Navin Fluorine International Ltd.'s net profit declined 27% in the third quarter of fiscal 2024, but surpassed analysts' estimates.

The company's net profit dropped to Rs 78.02 crore in the October-December quarter, in comparison with Rs 106.56 crore in the year-ago period, according to its exchange filing issued on Tuesday. That compares with the Rs 63-crore consensus estimate of analysts tracked by Bloomberg.

Navin Fluorine Q3 FY24 Highlights (Consolidated, YoY)

  • Revenue down 10.96% at Rs 501.82 crore vs Rs 563.58 crore (Bloomberg estimate: Rs 522.4 crore).

  • Ebitda down 51.37% at Rs 75.67 crore vs Rs 155.58 crore (Bloomberg estimate: Rs 121 crore).

  • Margin contracts 1,252 bps to 15.07% vs 27.6%.

  • Net profit down 26.78% at Rs 78.02 crore vs Rs 106.56 crore (Bloomberg estimate: Rs 63 crore).

Business Segments

Specialty Chemicals

  • Specialty chemical segment saw revenue decrease of 4.5% year-on-year. Revenue was impacted due to deferral of campaigns and channel inventory destocking. The company added one molecule at Dahej, while four are in the pipeline for the next quarter.

  • Capex of Rs 30 crore towards development of a new capability in Surat is on track and expected to generate revenue from FY25.

HPP (High Performance Product)

HPP saw revenue decrease of 0.6%. R32 is operating at optimal capacity while additional capacity expansion of 4,500 MT is approved by board at a capex of Rs 84 crore, it said. This is expected to be commissioned by February 2025. Pricing pressure in R22 exports continues and is expected to stabilise in Q1 FY25.

CDMO (Contract Development and Manufacturing Organization)

  • Revenue from CDMO vertical saw a huge decline of 41.5%. Postponement of sales for key molecules to next fiscal impacted Q3 FY24 sales. The company entered into a strategic partnership with a U.S.-based CDMO player.

  • Board has approved capex of Rs 288 crore for a new cGMP-4 facility at Dewas. The period within which the proposed capacity is to be added is 25-30 months.

Shares of the company closed 0.91% higher at Rs 3,264.60 apiece, as compared with a rise of 0.72% in the benchmark Nifty 50 on Tuesday.