Fairchem Organics Limited — PPTs, 18-02-2025: Investor Presentation

Q3 FY25 financial performance reflects a decline in revenue, totaling INR 1,136 Mn, down 23.3% year-over-year and 18% quarter-over-quarter. With total expenses at INR 1,058 Mn, EBITDA dropped significantly to INR 78 Mn, resulting in EBITDA margins contracting to 6.87%. PAT fell to INR 35 Mn, with margins at 3.08%. The company's struggles stem from low demand in the paints sector for key products and increased production costs due to a rise in customs duty on crude vegetable oils, which particularly affected Dimer Acid production. Despite these challenges, Fairchem remains optimistic about its Isostearic Acid exports, anticipating increased volumes starting April 2025. Following nine months, revenue from operations stands at INR 4,171 Mn, with a PAT of INR 214 Mn and EBITDA margin of 9.21%. Investors should monitor the company's response to commodity price pressures and shifts in market demand, as recovery in earnings hinges on operational adjustments and potential export growth.