Bodal Chemicals Limited — PPTs, 28-05-2025: Investor Presentation

1. Financial Highlights:

Consolidated revenue grew 24% YoY to Rs. 1,756.7 Cr with EBITDA surging 43% to Rs. 170.7 Cr, driven by higher volumes and realizations. PAT rose to Rs. 18.5 Cr from Rs. 6.5 Cr despite increased interest and depreciation due to capacity expansion. EBITDA margin improved to 9.7% from 8.4%. Dye Intermediates revenue jumped 36%, Chlor Alkali grew 25%, and Basic Chemicals increased 11%. Q4 alone saw a 14% revenue rise to Rs. 453.2 Cr and a 62% EBITDA gain to Rs. 49.6 Cr. The balance sheet remains stable with net debt to equity around 0.79x and ROCE nearly 6.8%.

2. Strategic Initiatives & Growth Drivers:

Commercial production began at Saykha Benzene downstream unit, broadening the product range despite margin pressure from competition. Capacity expansions continue in Chlor Alkali and Dye Intermediates, supported by pollution control upgrades and a 5 MW co-generation plant. Focus on operational efficiencies and greenfield expansions persists. Backward integration with about 40% captive raw material use enhances cost competitiveness.

3. Business Developments:

Consolidated subsidiaries in China, Indonesia, and Turkey showed growth (China +7%, Indonesia +64%), while Turkish operations face hyperinflation challenges. Domestic trading via BCTPL has resumed. The company maintains a strong integrated production and marketing footprint across 30+ countries.

4. Market Position & Competitive Advantage:

Bodal Chemicals holds ~20% domestic market share in Dye Intermediates and ~13% in Dyestuffs, with ~25% export revenue. Backward integration delivers a cost edge. Stringent environmental compliance and a diversified portfolio spanning specialty chemicals to caustic soda products protect against commodity swings and regulatory risks.

5. Investor Implications:

Revenue and margin growth alongside capacity ramp-up and new product commercialization indicate positive growth potential. Margin improvement from Benzene downstream and foreign subsidiary risk require monitoring. The integrated model and strong compliance position the company well to benefit from industry consolidation and demand for compliant chemical manufacturers.