DCW Limited — PPTs, 12-05-2025: Investor Presentation

1. Financial Highlights:

DCW posted FY25 revenue of ₹2,000 Cr, up 6.9% YoY, led by a 43% jump in Specialty Chemicals sales to ₹525.7 Cr. Quarterly revenue dipped 13.5% YoY to ₹538 Mn due to weak exports and softer prices in Synthetic Rutile and Soda Ash. Annual EBITDA grew 10.2% to ₹193.4 Cr, driven by a 39% EBITDA boost in Specialty Chemicals to ₹185.6 Cr; Basic Chemicals reached breakeven after prior losses. Quarterly EBITDA declined 12% to ₹55.8 Cr. PAT soared 93% to ₹30.3 Cr annually but dropped 25.5% quarterly to ₹11.4 Cr. Net debt/EBITDA stood at 0.97x with net debt/equity at 0.41x. Cash rose ₹46 Cr to ₹215 Cr.

2. Strategic Initiatives & Growth Drivers:

DCW is fast-tracking its C-PVC capacity expansion from 21,600 TPA to 50,000 TPA, targeting early completion ahead of schedule by FY26. A 44.5 MW captive renewable power plant went live, expected to cover 25% of Sahupuram’s power needs, lowering costs and enhancing sustainability. These efforts focus on scaling high-margin specialty chemicals and improving margins via green energy integration.

3. Business Developments:

No acquisitions or partnerships were highlighted. However, production hit record highs with 25,917 MT of Synthetic Iron Oxide Pigments and 22,900 MT of C-PVC in FY25, underscoring robust execution and strong specialty chemicals demand.

4. Market Position & Competitive Advantage:

With 80+ years in operation, DCW leads domestically in Soda Ash, C-PVC, Synthetic Rutile, and Synthetic Iron Oxide Pigments, hosting Asia’s largest SIOP plant. Proximity to the Sahupuram port aids exports and raw material logistics. Captive raw material production and cogeneration power plants drive cost efficiency. Its specialty chemicals business, contributing 26% to revenue, benefits from global customer ties across 12+ countries and a diversified, high-margin portfolio.

5. Investor Implications:

The specialty chemicals capex and renewable power rollout offer avenues for margin expansion and revenue diversification, indicating positive growth potential. Stronger balance sheet metrics reduce financial risk. Execution timing on C-PVC expansion and export recovery remain key monitoring points. Investors should watch specialty chemicals volume growth and margin stability for signs of sustained profitability improvement.