Bodal Chemicals Ltd (BODALCHEM) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator (Equirus Securities Private Limited): Ladies and gentlemen, good day and welcome to the Bodal Chemicals Limited 2Q FY27 earnings call hosted by Equirus Securities Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. Pankaj Motwani from Equirus Securities. Thank you and over to you, Mr. Pankaj.
Pankaj Motwani (Equirus Securities): Thank you. Good evening, everyone. On behalf of Equirus Securities, I welcome you all to the Q2 FY27 post-results earnings conference call of Bodal Chemicals Limited. From the management side, we have with us Mr. Ankit Patel, executive executive director, and Mr. Mayur Padhya, CFO. I will now hand over the call to Mr. Ankit Patel for the opening remarks, post which we can open the forum for the Q&A session. Over to you, sir.
Ankit Patel (Bodal Chemicals Ltd): Thank you very much. Good afternoon everybody. On behalf of Bodal Chemicals Limited, I extend a very warm welcome to everyone for joining us on the call today. On this call, we are joined by our CFO, Mr. Mayur Padhya. I hope everyone had an opportunity to go through the financial results and investor presentation, which has been uploaded on the Stock Exchange and our company's website. We will give you a quick overview of the company's performance, and then Mr. Mayur Padhya will walk you through the operational and financial performance in detail for the quarter. We are an established integrated chemical company in India with a presence across dyes, dye intermediates, sulphur chemicals, chlor alkali, benzene specialty derivatives, and water treatment chemicals. We operate eight plants across Gujarat, Punjab, Uttar Pradesh, and we also have four
Ankit Patel (Bodal Chemicals Ltd): opportunities for further growth. To put our recent performance in context, let us review the company's performance over the past several years. FY '13 to FY '20, the company consistently performed well. FY '21, despite the widespread impact of COVID-19, the company reported a net profit of 40 crores. FY '22, performance was strong. FY '23 till FY '26, performance was weaker, reflecting both external headwinds and operational challenges. The post-COVID recovery in demand for dyes and dye intermediates faded rapidly from FY '23. Major Western markets, particularly US and Europe, faced several challenges: elevated inflation and significant central bank interest rate increases, geopolitical disruptions arising from the Russia-Ukraine conflict, disruptions to shipping routes in the Red Sea, tariffs imposed by the US. Apart from these external factors, stabilization of our benzene downstream plant took longer than expected because of the integration of several foreign technologies, initial operational issues and delays in approvals from pharmaceutical customers. Together with the external headwinds, these challenges prevented us from achieving our intended profitability. The plant has significant overheads, making low-capacity utilization a source of losses. In each of the preceding two years, it recorded an EBITDA-level loss of approximately 30 crores. In the TCCA business, anti-dumping duties on imports from China provided limited benefits as imports continued from the other countries. But conditions have improved since the start of the current financial year. Although international challenges have not been fully resolved, the industry appears to have adopted to the disruptions. Several developments in China are supporting better price realization for dye intermediates in both India and China. Stricter enforcement of environmental laws has restricted the production. No significant new capacity has been added in our industry in China over the past several years. Environmental restrictions and the broader industrial environment appear unfavorable for the new capacity additions. Export trends also suggest a possible shift in China's market. H-acid has been consistently exported to China for more than a year. Vinyl sulphone is also exported to China frequently. More recently, exports of dyestuff and benzene downstream products to China have begun, possibly for the first time. Together, these developments suggest that structural changes may be taking place in China. Further, capacity utilization at the benzene downstream plant improved to a satisfactory level in the first half of the current financial year and has improved further in the current quarter. Price realizations have also strengthened. We expect the plant to begin contributing to net profit from the current quarter. We expect sustained improvement in production to support better results for the TCCA business in the coming quarter. Coming to the operational performance. During first half financial FY '27, company achieved all-time high consolidated total turnover of 1,599 crores, a 67% growth on year-on-year basis. This growth is led by better realization, improved volume across the divisions, the robust margin of key dye intermediates and with effective pass across the higher raw material cost. The company has achieved highest absolute EBITDA of 203 crores for the first half, a remarkable 114% growth on year-on-year basis for the first half in the current year. During Q2, company achieved consolidated total revenue of 884 crores, a 77% growth on Y-o-Y basis. EBITDA stood at 128 crores, a 197% growth on year-on-year basis with a margin of 14.4%. Net profit stood at 81 crores, a 1,259% growth on year-on-year basis. For the first half FY '27, our standalone net profit after tax stood at 109 crores, and consolidated net profit after tax stood at 112 crores. Coming to dye intermediates, during the first half FY '27, revenue from dye intermediates grew by 68%, led by volume with outstanding margin. In Q2 FY '27, revenue from dye intermediates stood at
Ankit Patel (Bodal Chemicals Ltd): 35 crores grew by 88% quarterly on Y-o-Y basis. Being an integrated dyestuff manufacturer, we produce major dye intermediates products, and about 40% of these intermediates production is captively consumed, resulting in a cost advantage for our dyestuff products. The balance production of dye intermediates is served in both domestic as well as global markets. Coming to our dyestuffs, first half FY '27 dyestuff grew by 42%. This improved realization helped to absorb raw material pressure in Q2 FY '27. Revenue from dyestuffs stood at 212 crores, a growth of 60% quarterly on year-on-year basis. Coming to the basic chemicals, about 50% of our basic chemicals is captively used for our dye intermediates. During the first half FY '27, basic chemicals grew by 136% year-on-year basis, mainly due to increase in the prices of main raw material, sulfur. In Q2 FY '27, the revenue from basic chemicals stood at 99 crores, a growth of 199% quarterly on year-on-year basis. Coming to chlor alkali business, during the first half FY '27, chlor alkali business has reported a revenue of 178 crores, a growth by 6% on year-on-year basis, led by comparative better realization on year-on-year basis. In Q2 FY '27, revenue from chlor alkali business stood at 91 crores, a growth of 88%. Coming to benzene derivatives, during the first half FY '27, in the Sanya benzene downstream products division, it's started contributing to the top-line. Decent better realization and improved volume will lead to meaningful contribution even bottom-line on the quarter-on-quarter basis. Coming to coming to the subsidiary companies, the Senor Botech Turkey, Chinese subsidiary, Bodal Chemicals Trading Private Limited subsidiary have all performed overall satisfactory during Q2 FY '27. Thank you. And now, I hand over the call to Mr. Mayur Padhya to walk you through the financial performance.
Mayur Padhya (Bodal Chemicals Ltd): Good evening, everyone. The overall performance of the company has been satisfactory for the quarter gone by. Our standalone performance for Q1 FY '27 is as follows. Total revenue for Q1 Q2 FY '27 stood at 872 crore. EBITDA stood at 107 27 crore in Q2 FY '27. Net profit for the quarter stood at Rs. 80 crore. Total revenue for H1 FY '27 stood at 1,576 crore on standalone basis. EBITDA stood at 202 crores in H1 FY '27. Net profit stood at 109 crore for H1 FY '27. Our consolidated performance for Q2 FY '27 is as follows. Total revenue stood at Rs. 884 crore for Q2 FY '27. EBITDA stood at 128 crore for Q2 FY '27, with a margin of 14.4%. Net profit for the quarter stood at Rs. 81 crore for Q2 FY '27. Our consolidated performance for H1 FY '27 are as follows. Total revenue stood at Rs. 1,599 crore for H1 FY '27, against Rs. 959 crore for H1 FY '26. EBITDA stood at 203 crore in H1 FY '27, a growth of 114%. Net profit for the half year stood at Rs. 112 crore, against net profit of 16 crore for H1 FY '26. Division-wise performance on a consolidated basis for the H1 FY '27 are as follows. Dyestuff revenue stood at 361 crore. Dye intermediate revenue stood at Rs. 562 crore. Basic chemical revenue stood at 183 crore. Chlor alkali revenue stood at 178 crore. Total production volume on a standalone basis for the H1 FY '27 are as follows. Dyestuff reported 9,056 metric ton. Dye intermediate reported 16,956 metric ton. Basic chemical stood at 1,13,312 metric ton. Chlor alkali
Mayur Padhya (Bodal Chemicals Ltd): stood at 38,886 metric ton. With this, I conclude the presentation and here by open the floor for further discussion, question, and answer.
Moderator: Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have first question from the line of Garvit Goyal from Shree Alpha. Please go ahead.
Garvit Goyal (Shree Alpha): Hello, am I audible?
Moderator: Yes, sir, you're audible.
Garvit Goyal (Shree Alpha): Hi. Good evening and congrats for a good set of numbers. My first question is on the industry environment specifically on the H-Acid pricing. How are you seeing the current scenario and price acceptability among the end users for H-Acid? Do you see any risk of end users deferring their demand particularly once the festive season season in China comes to an end? So, do you think any buyer resistance to current prices will start to appear?
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