InvestorQ : I have been tracking Jubilant Ingrevia since Rakesh Jhunjhunwala holds this stock and want to know its prospects after the quarterly results for March 2022?
Mahima Roy made post

I have been tracking Jubilant Ingrevia since Rakesh Jhunjhunwala holds this stock and want to know its prospects after the quarterly results for March 2022?

Answer
image
2 months ago
Follow

Firstly, my suggestion is to buy a stock because it is fundamentally good and it suits your risk appetite. Don’t be guided by what other big investors buy because they have a different set of requirements and also a different level of risk appetite. Let me talk about the quarterly results of Jubilant Ingrevia, which is the specialty chemicals business of the group. It reported 89.4% higher sales in Q4FY22 at Rs1,296 crore.

If I were to look at the business verticals, Jubilant Ingrevia saw robust sales growth across specialty chemicals, nutrition and chemical intermediates. While specialty chemicals grew on healthy demand, chemical intermediates saw good demand traction from key consuming agrochemicals and pharma sectors. The board has announced a final dividend of Rs2.50 per share. EBITDA margins tapered from 21.1% to 18.2% in Q4FY22 on yoy basis.

While sales grew by over 89% yoy, the net profits for Q4FY22 were up by just 17.53% at Rs68.59 crore. In terms of verticals, while the EBIT from specialty chemicals and nutrition products grew, the EBIT from chemical intermediates fell -57.2% yoy. Overall, the profits were hit by a doubling of raw material costs and tripling of power costs. Net margins stood at 5.29% in Q4FY22 quarter compared to 8.53% in Q4FY21 and 10.03% in Q3FY22.

3 Views