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Earnings Call Transcript

Styrenix Performance Materials Earnings Call Transcript: Key Takeaways

Styrenix reported strong financial growth but faces significant volume headwinds as geopolitical instability in the Middle East disrupts raw material sourcing and causes extreme pricing volatility.

Highlights
Revenue growthStandalone income grew 6.6% YoY; consolidated income reached 1014.2 Cr.
MarginsEBITDA margins improved significantly to 26.1% on favorable spreads.
Demand visibilitySubdued non-OEM demand due to buyer caution over volatile prices.
Management confidenceBalanced but cautious regarding persistent geopolitical and pricing volatility.

Growth

Income grew 6.6% YoY to 770.5 Cr, with PAT surging 150.3% due to favorable inventory spreads despite a 26% volume dip.

Outlook

ABS expansion is on track for completion this fiscal year, aiming for long-term growth as market conditions normalize.

Risks

Extreme volatility in Styrene Monomer prices and supply chain disruptions pose significant risks to volume recovery.

Last quarter's promises, checked

Delivered

  • ABS expansion on track → On track for completion this fiscal year (= BEAT)
  • Thailand breakeven at 60-70% utilization → Progressing toward target (= BEAT)
  • Formula-based pricing >70% of business → Maintained at >70% (= BEAT)

Partly delivered

  • Power savings from third-party agreements → Expected next month (= PARTIAL)

Missed

  • Increase capacity utilization → Standalone volumes dipped 4.6% (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: STYRENIX. Summary written with AI assistance from the document.

Read the document ↗

Styrenix Performance Materials Ltd: key numbers

Share price
₹2,067.00
Market cap
₹3,635 Cr
Revenue (annual)
₹3,438 Cr
Net profit (annual)
₹182.8 Cr
P/E (TTM)
13.3×Sector 37.5×
Promoter holding
46.24%+0.00% QoQ
FII holding
0.86%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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17:17 IST BSE
Legal & Regulatory

Styrenix Performance Materials Legal & Regulatory

Styrenix Performance Materials received an Income Tax demand order of ₹1.93 Crore for AY 2023-24. The company will file an appeal against the assessment order.

Value
₹1.93 Cr
From
Income Tax Department