Jubilant Ingrevia Q4 Results: Profit Down 44%, Misses Estimates

Jubilant Ingrevia Ltd.'s consolidated net profit declined 44% in the fourth quarter of fiscal 2024, and missed analysts' estimates.

The company posted a net profit of Rs 29.25 crore in the quarter-ended March, in comparison with Rs 52.31 crore in the year-ago period, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had estimated a profit of Rs 48.25 crore.

• Revenue down 6.16% to Rs 1,074.44 crore versus Rs 1,144.98 crore (Bloomberg estimate: Rs 1,030.65 crore).

• Ebitda down 10.5% to Rs 91.24 crore versus Rs 102.05 crore (Bloomberg estimate: Rs 97.20 crore).

• Ebitda margin at 8.49% versus 8.9% (Bloomberg estimate: 9.4%).

• Net profit down 44% to Rs 29.25 crore versus Rs 52.31 crore (Bloomberg estimate: Rs 48.25 crore).

Agro Chemical

• Some stability in volume and price experienced in Q4, though it expects markets to improve in Q3/Q4 FY25.

• Destocking is in its final phase and channel demand should start building up gradually, it said.

• However, China does have excess capacity, which enables them to ramp-up supply easily and puts pricing under pressure, according to the company.

Pharma

• Industry largely remained stable; experienced volume growth in specific product segments, though pricing remains muted.

• Paracetamol demand remained stagnant, while price came down significantly due to excess capacity; key customers operating at sub-par capacity utilisation.

Nutrition

• Industry remained stable. However, ongoing pressure on pricing remains.

• Chinese players continue to be aggressive with pricing.

• Good traction observed for cosmetic and food grade volume.

Agro Chemical

• Cautious optimism for FY25: Despite expectations of market improving starting H2 FY25, it remains cautious due to its understanding that China has added capacity in agrochemicals leading to continuous pressure on pricing, it said.

• Customers deferring purchase as destocking trend is lingering longer than expected, i.e. at least 1-2 more quarters.

Pharma

• Stable and steady volume growth expected in FY25, though pricing to remain under pressure driven by excess capacity.

• Expect increased traction in international markets driven by Fine Chemicals and CDMO

Nutrition

• Expect pricing pressure to continue in animal feed, across both Niacinamide and Choline product lines.

• Food grade demand remains robust, with inbound queries for Choline Bitartrate and food grade Vitamin B3. Personal care segment (Cosmetic grade) is also getting queries for upcoming capacity, it said.

Semiconductor

• High interest from global companies to create Indian sourcing partners. It expects to see more RFPs (request for proposals) in the coming months.

With the onset of fiscal 2025, it expects all the three segments to improve sequentially over FY24. "Our key focus in FY25 will be on customer centricity, ramping up the newly commissioned plants, remaining lean and bringing back the margins to normal levels," said Shyam S Bhartia, chairman of Jubilant Ingrevia.

"We are getting good traction from cosmetics and semiconductor sectors. We are firm and on track towards investing in high-potential product categories and (to) expand our product portfolio through our ongoing modular capex plan of Rs 2,000 crore, to deliver structured growth and drive us towards our newly created vision of Pinnacle 345, i.e. three times revenue, four times Ebitda in five years," he said.

Shares of the company closed 2.16% lower at Rs 508.45 apiece on the NSE, as compared with a 0.54% advance in the benchmark Nifty 50.