Anupam Rasayan India Ltd — Q3 FY26

Anupam Rasayan India Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=d8YmYxprkKo Published: 2 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Anupam Rasan India Limited Q3 FI26 earnings call. As a reminder, all 0:10 10 seconds participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:18 18 seconds Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that 0:27 27 seconds this conference is being recorded. I now hand the conference over to Krishna Patel from EY. Thank you and over to you. 0:34 34 seconds Thank you Vikra and good afternoon everyone. Welcome you all to Anupam Rasan India Limited Q3 9month FI26 ARIN 0:42 42 seconds conference call to take us through the results and to answer your questions. We have with us the management of Anupam Rasai in India. We presented by Mr. 0:50 50 seconds Anand Desai the managing director, Mr. 0:52 52 seconds Bopal Aradal, Chief Executive Officer and Mr. Vishal Tucker the deputy chief financial officer. The discussions that we may have today may contain certain 1:00 1 minute forward-looking statements relating to the future events and future performance. Numerous factors could cause the actual results to differ materially from those in the 1:08 1 minute, 8 seconds forward-looking statement. Please note the audio of this earnings call is a copyright material of Anukam Rasai India can be copied, rebroadcasted, attributed 1:17 1 minute, 17 seconds in the press media without specific written consent of the company. With this I I would like to now hand over the call to Mr. Anand Desai managing 1:25 1 minute, 25 seconds director for his opening comments. Thank you and over to you sir. 1:30 1 minute, 30 seconds Thank you Krishna. Good afternoon everyone and thank you for joining us for our Q3 and 9 months FI26 earnings 1:36 1 minute, 36 seconds call. For the 9 months ended December 31, 2025, we delivered consolidated revenue of rupes 1,730 crores translated 1:46 1 minute, 46 seconds to 84% year-on-year growth. A bit stood at rupees 402 crores of 53% yi growth 1:54 1 minute, 54 seconds and pet was rupes 166 crores resisting 71% yearon-year growth. For the Q3 FI26 2:02 2 minutes, 2 seconds specifically, revenues stood at 512 crores up 31% year-on-year basis. AITA 2:09 2 minutes, 9 seconds was 130 crores and that came in at rupees 66 61 crores translating to a growth of 12% year-on-year basis. 2:18 2 minutes, 18 seconds The strong performance reflects scale up of commercial molecules, improved capacity utilation across manufacturing assets and increasing 2:25 2 minutes, 25 seconds contribution from execution of auto book across agro and performance material verticles. 2:32 2 minutes, 32 seconds This was further supported by strong performance in pharma segment which contributed 19% of sales for 9 months effort 26. 2:39 2 minutes, 39 seconds Our revenue mix today is well diversified across agro, pharma, personal care and performance material providing portfolio balance and demand visibility. 2:50 2 minutes, 50 seconds During the year, agro demand has shown a clear recovery supported by improving channel inventory levels and gradual normalization of global demand. The agro 3:00 3 minutes segment delivered healthy revival in demand reflecting improvement in customer. 3:06 3 minutes, 6 seconds Pharma continues to remain a key growth driver for us where the focus is importation of key starting materials and intermediates for high growth high 3:15 3 minutes, 15 seconds value end product and pharma products of material portfolio which includes segments such as defense electronic 3:22 3 minutes, 22 seconds materials also delivered strong growth and for 9 months effort 26 it has contributed to 70 17% of our revenue 3:32 3 minutes, 32 seconds in 2022 we had acquired a controlling stake in 10fact which helped us secure uninterrupted access to key raw 3:39 3 minutes, 39 seconds materials such as HF and KF that are critical for florenian chemistry. This backward integration reduces supply 3:46 3 minutes, 46 seconds chain risk, improves cost stability, enhances reliability for global customers and enables development of 3:52 3 minutes, 52 seconds high value added fluid intermediates for anomal in a similar spirit of expanding 4:01 4 minutes, 1 second our geographical footprint and access to high value and critical end markets. 4:05 4 minutes, 5 seconds During the quarter, we have signed a definitive agreement to acquire 100% equity in J-Hawk Pine Chemicals, a US-based speciality chemicals company 4:14 4 minutes, 14 seconds from the CAB group. We are currently in the process of completing the formalities of the acquisition and expected to be closed in the coming weeks. 4:23 4 minutes, 23 seconds With this acquisition, UNO will get a direct onore manufacturing presence in the US significantly enhancing engagement with e multinational 4:31 4 minutes, 31 seconds customers. The occasion for the strengthenance of platform depths across the value chain and enhances access to fast growing 4:40 4 minutes, 40 seconds innovation led markets such as chemicals, automotive, EV, pharma, evation and electronics which will help 4:48 4 minutes, 48 seconds accelerate our participation in these high value segments. 4:52 4 minutes, 52 seconds Strategically, these equations strengthens our footprint in North America and further enhances our capabilities in advanced custom synthesis and improves access to regulated and innovated driven markets. 5:05 5 minutes, 5 seconds For moreover, we expect the equation to be accredited from day one. This equation is aligned with our long-term objective of evolving into global 5:14 5 minutes, 14 seconds specialy chemical platform serving key geographies and high growth and high value sectors. 5:20 5 minutes, 20 seconds With that I now I will now hand it over to Gopal by for his operational insights. 5:26 5 minutes, 26 seconds Thank you Anandai. As Anandai mentioned our focus continues to be on commercializing pipeline molecules, improving asset utilization, 5:34 5 minutes, 34 seconds strengthening supply chain resilence and deepening technical capabilities across our key chemistry platforms. The pharma and polymer pipelines remain strong with 5:43 5 minutes, 43 seconds 65 plus molecule across R&D and pilot stages. We are manufacturing key starting material that intermediate for globally relevant blockbuster molecules 5:51 5 minutes, 51 seconds such as autoast starting uh dagloin uh venoprozan and others. Within pharma 5:59 5 minutes, 59 seconds alone we have more than 30 molecules in R&D and pal stage. In the polymer and electronic m uh electronic material 6:06 6 minutes, 6 seconds vertical we have 35 plus molecule under development and par stages. 6:11 6 minutes, 11 seconds Pharma continues to show strong momentum with growth of 85% on year-on-year basis in 9 months FI26 6:18 6 minutes, 18 seconds driven by ramp up of recently commercialized molecule and addition of new products. The polymer and performed material segment also delivered a strong 6:26 6 minutes, 26 seconds growth of 245% on year-on-year basis in 9 months FI26 supported by increasing demand across advanced material 6:34 6 minutes, 34 seconds electronic chemicals and next generation material applications. Our growth continues to be driven by high intri chemistry, complex multi-step synthesis 6:42 6 minutes, 42 seconds and long-term qualification cycles, customer cycles. This typically results in strong customer stickiness and long-term supply visibility. We are also 6:51 6 minutes, 51 seconds seeing strong traction in Japan where our revenue you know contributed was almost 17% this quarter. This growth is 6:58 6 minutes, 58 seconds supported by increasing engagement with addition of new customers and expansion of new molecule within the with the existing customers. Japan continues to 7:06 7 minutes, 6 seconds be and it remains a pretty strategic uh geography for us. Our focus remains clearly uh on deepening uh relationship 7:15 7 minutes, 15 seconds with global innovators, expand coordination chemistry capabilities, ramp up pharma and perform metal portfolio and execute the J-Hawk 7:22 7 minutes, 22 seconds integration smoothly. We remain confident in our growth trajectory and committed to be disciplined long-term value creation. With that, now I request 7:31 7 minutes, 31 seconds Vishal by to take you through the financial road. 7:35 7 minutes, 35 seconds Thank you Gopalwai and good afternoon everyone. I would like to highlight that the growth this quarter has come from the ramp up of execution of our order 7:43 7 minutes, 43 seconds book in in 9 months ended 2026 lois and contracts contributed over 25 7:50 7 minutes, 50 seconds 250 crores of revenue demonstrating strong conversion of pipeline into commercial revenues. Overall 58% of our 7:58 7 minutes, 58 seconds total revenue came from exports re reaffirming our strong and diversified global presence. Our working capital 8:05 8 minutes, 5 seconds intensity remains broadly in line with what we had in Q2. Uh and the working capital base downward trend continues. 8:12 8 minutes, 12 seconds Looking ahead, we remain optimistic about growth momentum continuing into the next fiscal year. Uh supported by our pipeline visibility, deeper customer 8:20 8 minutes, 20 seconds relationship and expanding glo global footprints. 8:24 8 minutes, 24 seconds I would like to share some key performance highlights for the quarter before we open up the floor for Q&A session. I hope you had the opportunity 8:32 8 minutes, 32 seconds to review the detailed presentation and the results that were uploaded on the exchanges websites exchanges and company websites sorry 8:41 8 minutes, 41 seconds 9 months FI2 highlights uh for the consolidated revenue was at rupees 1,730 8:47 8 minutes, 47 seconds crores up 84% YI consolidated IIDA was at rupes 402 8:54 8 minutes, 54 seconds crores up 53% yi consolidated pat for uh 9 months was at 9:01 9 minutes, 1 second rupes 166 crores up 71% y consolidated ibeta margin for fi for 9 months fi 26 stood at 23%. 9:14 9 minutes, 14 seconds Q3 FI26 highlights uh consolidated revenue uh was at rupes 512 crores. Uh 9:24 9 minutes, 24 seconds the consolidated eida for the for the quarter was at rupees 130 crores and the consolidated pad for the quarter was at 9:32 9 minutes, 32 seconds rupes 61 crores. The quarterly consolidated IITA margin stood at 25%. 9:39 9 minutes, 39 seconds Uh thank you. Now we can open for the floor. Open the floor for the questions. 9:48 9 minutes, 48 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 9:59 9 minutes, 59 seconds If you wish to remove yourself from the question queue, you may press star N2. 10:05 10 minutes, 5 seconds Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question Q assembles. 10:27 10 minutes, 27 seconds Participants, anyone who wishes to ask a question, please press star N1. Now 10:38 10 minutes, 38 seconds the first question is from the line of Tanya Chadri from Invest Tech. Please go ahead. 10:45 10 minutes, 45 seconds Uh hello sir, thanks for the opportunity. Uh I think you mentioned that uh Jay-Hawk's acquisition will be 10:52 10 minutes, 52 seconds EPS accuratative. So what is the EPS impact this quarter because of the acquisition? 10:59 10 minutes, 59 seconds So right now we have not yet consolidated the numbers as the transaction has is yet to be completed and hence no contribution of the 11:08 11 minutes, 8 seconds J-Hawk's revenue or profit has been added to this quarter's uh results or the 9mon result that we have announced 11:14 11 minutes, 14 seconds and going forward uh once we conclude this transaction which we are expecting as Anandai said over next uh a week or 11:22 11 minutes, 22 seconds two or couple of weeks we shall be then adding it to the next quarter's uh numbers appropriately. 11:29 11 minutes, 29 seconds All right. So, thank you so much. 11:36 11 minutes, 36 seconds Thank you. A reminder to all the participants, if you wish to ask a question, please press star N1. 11:53 11 minutes, 53 seconds Participants who wishes to ask a question may press star N1 at this time. 12:07 12 minutes, 7 seconds The next question is from the line of Harsha from MK Global. Please go ahead. 12:14 12 minutes, 14 seconds Thank you so much for the opportunity sir. So my question was what are your plans strategically with this uh asset we are acquiring? 12:24 12 minutes, 24 seconds Okay. Uh so let me take a stab and then probably uh we can add further as well. 12:29 12 minutes, 29 seconds But uh let me start with first that if you if you see we have been clearly focusing on expanding our footprints in 12:36 12 minutes, 36 seconds uh US as an end market and especially we were looking at a performance uh materials business which we we we were expanding which we have continued which 12:45 12 minutes, 45 seconds which has expanded over the last year or two or more and we expect it to continue but with the acquisition of J-Hawk three 12:52 12 minutes, 52 seconds things happened to us very very significantly. one we get a critical uh uh manufacturing asset base in US which 13:00 13 minutes is a very very very uh important uh uh you know asset that would be there especially when we looking at a client 13:08 13 minutes, 8 seconds attracting clients in the US market uh as as we are able to offer a very strong local supply chain uh for them second if 13:17 13 minutes, 17 seconds you look at it Jay-Hawk has a large part of the revenue coming from US and from the performance material business which 13:25 13 minutes, 25 seconds uh largely into semiconductors into uh air aircraft business uh aerospace 13:33 13 minutes, 33 seconds business into pharma into uh EV and uh electronic automobiles industry which 13:39 13 minutes, 39 seconds will be very very helpful to to to you know expand the portfolio. Third also if 13:47 13 minutes, 47 seconds you look at it from a supply chain point of view we are able we will now be able to offer a broader and a wider supply 13:54 13 minutes, 54 seconds chain to our end customers where we can we we practically can start from Tenfact and build it from Anukam and go further 14:02 14 minutes, 2 seconds to JHawk. So it's a very strong platform that we are offering. Uh third, if you look at it from a technology point of 14:09 14 minutes, 9 seconds view, they have very strong cube uh technologies that they have especially in the hybridity business and which is 14:16 14 minutes, 16 seconds what we think will help us in terms of you know uh leveraging it to offer a a basket of products to our end customers. 14:26 14 minutes, 26 seconds Also one more thing is that they have they have validation with lot of uh very high-end customers in US which typically 14:34 14 minutes, 34 seconds takes a long period for any valid any company to get validated which further will enhance the speed at which we can 14:42 14 minutes, 42 seconds you know u u um uh expand our business in US. So overall across asset, across supply chain, across uh technology, 14:51 14 minutes, 51 seconds across customers and across portfolio, we will be able to leverage the whole platform and offer a a broader larger uh 14:59 14 minutes, 59 seconds stable supply chain offering to our customers. I hope that helps. 15:05 15 minutes, 5 seconds Yes, that explains it well, sir. Uh that's it from my side. Thank you and best of luck for the coming quarter. Thank you. 15:12 15 minutes, 12 seconds Thank you. 15:15 15 minutes, 15 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one. 15:31 15 minutes, 31 seconds Participants please note if you wish to ask a question please press star N1. 15:49 15 minutes, 49 seconds A reminder to all the participants, if you wish to ask a question, please press star and one. 16:03 16 minutes, 3 seconds The next question is from the line of Disha Shamir Maheshwari from N Shiv. Please go ahead. 16:11 16 minutes, 11 seconds Um thanks for the opportunity. Uh so the first question is uh regarding uh LIP F6. So now while the process 16:20 16 minutes, 20 seconds optimization capabilities and tan packs backward integration in the florine chemistry are clear strengths. So now could management please share any 16:29 16 minutes, 29 seconds additional factors that made Anopam the preferred choice over the two to three other established global players already manufacturing uh LIIPF6. 16:45 16 minutes, 45 seconds Yeah. Uh so uh see the the whole approach that we have taken here of 16:51 16 minutes, 51 seconds offering a full supply chain a b coup coupled with uh the the technical capabilities that Anupam has of doing 17:00 17 minutes multiple chemistries uh both put together and at scale. These three typically helps any customer to 17:09 17 minutes, 9 seconds work with us who can offer a long-term supply chain solution. This project we have been working with them for a long 17:16 17 minutes, 16 seconds long period of time and today now the large uh multinational has uh uh you know offered to work with uh offered us 17:25 17 minutes, 25 seconds to work with them and uh uh that's the thing. So if you were to ask me there are two or three broad ones. One 17:33 17 minutes, 33 seconds technical capabilities across multiple chemistries. two the access to supply chain and three an effort of over over 17:40 17 minutes, 40 seconds over years together to work with a multinational company like that and references that we have created that uh as a as a sustain as a very reliable 17:49 17 minutes, 49 seconds sustainable supply chain partner is what uh brings us to uh you know being a preferred partner with these customers 17:58 17 minutes, 58 seconds okay thank you sir uh and the next question would be like we've seen US players increasingly seeking Indian 18:05 18 minutes, 5 seconds suppl suppliers for LIIPF6 to diversify from SEOC countries. So however, Anupam's recent LOI is with European 18:14 18 minutes, 14 seconds players like Elite uh who may lack a similar regulatory mandate. Now assuming the end product is not getting consumed 18:21 18 minutes, 21 seconds in US. So could you please elaborate on why these European partners selected Anubam beyond process optimization and 18:28 18 minutes, 28 seconds tanpack integration especially given China's pricing dominance? 18:34 18 minutes, 34 seconds See I would not come talk about the other other part of the world but let me talk about my ourselves and why this has 18:41 18 minutes, 41 seconds happened with Elan uh uh the the point I'm point I was making earlier also is that every customer today see if you 18:49 18 minutes, 49 seconds look at it there is a whole scale up happening and everybody will need a large quantity of volumes here and when 18:57 18 minutes, 57 seconds they need large quantities of volume with a full ramp up they would need they would need customers 19:04 19 minutes, 4 seconds supplier Sorry suppliers who has a strong credible supply chain solution. 19:09 19 minutes, 9 seconds They are not looking at somebody who can import from somewhere and then process it. It is a full supply chain first. So that is very very critical and 19:17 19 minutes, 17 seconds especially when you're into a B2B kind of a business and especially a new business where you need to ramp up quickly that happens even more. 19:26 19 minutes, 26 seconds Second, second what they will also need is that do we have the chem chemistry capability to optimize as we go. If you 19:35 19 minutes, 35 seconds see historically we have been able to historically we have been able to to you know demonstrate to all our customers 19:42 19 minutes, 42 seconds that we have been able to you know achieve a strong cost optimization and process optimization which which plays the cost curve as the scale as we scale 19:50 19 minutes, 50 seconds up. So that again helps them. uh also if you look at the case in the point that we were talking about we had recently announced another uh announcement which 19:59 19 minutes, 59 seconds was with uh elementium of US. So it is not as if that we we are only uh working with an Europe European partners but 20:07 20 minutes, 7 seconds also with an America American partners and all of them are working are looking at working with us because again as I 20:14 20 minutes, 14 seconds said I don't I'm repeating myself but it is supply chain assets on ground chemistry in place and cost optimization 20:22 20 minutes, 22 seconds and process optimization that we can offer. So I think that's what I can say uh and and and and that's that's how we see it. 20:30 20 minutes, 30 seconds Okay. Thank you sir. 20:38 20 minutes, 38 seconds Thank you. Before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star N1. The next 20:47 20 minutes, 47 seconds question is from the line of Siddhin Natan from JM Financial. Please go ahead. 20:53 20 minutes, 53 seconds Yeah. Hi sir, thank you for taking my question. Uh I just have one from my side. uh could you please give some clarity on uh how much improvement has 21:01 21 minutes, 1 second been in your working capital days and what your targets are for FI27 and FI28. 21:11 21 minutes, 11 seconds Yeah, sure. So uh as of now we are around about working intensity uh for the consolidated would be around about 21:18 21 minutes, 18 seconds 250 odd days and we expect that uh in the near term we should be uh going 21:24 21 minutes, 24 seconds towards 220 and uh as you said 27 I think 27 we should be below below 200 21:31 21 minutes, 31 seconds around 180 days or below as is is is the management's focus and target here and and we can talk about it talk about 21:39 21 minutes, 39 seconds further uh you know plans as we go but this is the as as is plan. 21:45 21 minutes, 45 seconds Understood sir. Thank you and best of luck. Thank you. Thank you. 21:52 21 minutes, 52 seconds Thank you. A reminder to all the participant that you may press star N1 to ask a question. 22:14 22 minutes, 14 seconds Ladies and gentlemen, anyone who wishes to ask a question may press star N1. 22:42 22 minutes, 42 seconds A final reminder to all the participants, please press star N1 if you wish to ask a question. 22:54 22 minutes, 54 seconds Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments. 23:02 23 minutes, 2 seconds Thank you on behalf of the management of Anupam Rasan India. Uh we thank thank all of you for joining us uh for our 23:09 23 minutes, 9 seconds post earning calls today. We hope we have been able to address majority of your queries. If there are any further queries, you may please reach out to eny 23:17 23 minutes, 17 seconds our uh partner investor investor relation partner for any questions and we will be happy to answer offline. We now close the call. Thank you everyone and have a good weekend. 23:30 23 minutes, 30 seconds Thank you very much on behalf of Anupam Lasan India Limited. That concludes this conference. Thank you also joining us today.