Navin Fluorine Q4 Results Review - Numbers Buoyed By Strong CDMO Beat: ICICI Direct

ICICI Direct Report

Navin Fluorine International Ltd.'s numbers were above our expectations mainly due to the strong contract development manufacturing organisation performance even as other segments reported decent growth.

Reported revenue growth was 70.5% YoY to Rs 697.1 crore, led by CDMO up 131% YoY to Rs 203 crore, specialty chemical up 28% YoY to Rs 204 crore and high-performance product (refrigerants gas plus inorganic chemicals plus high-performance product) up 63% YoY to Rs 289 crore.

Navin Fluorine's gross margins were up 741 basis points YoY to 59.3% while Ebitda margin increased 589 bps YoY to 28.9%. Absolute Ebitda was up 114% YoY to Rs 201.8 crore.

Adjusted profit after tax increased to 81% YoY to Rs 136.4 crore. Finance cost was at Rs 14 crore, up 52% QoQ.

Key triggers for future price performance:

• Ramping up of high-performance product, multipurpose plants and agrochemical intermediate to aid added business revenue mix and thereby group return ratios.

• Expansion of hydrofluoric acid with foray into derivatives of HF, especially in emerging area like electric vehicle battery chemicals, solar, 5G, etc.

• Commissioning of a new fluoro specialty molecule by end of CY23 with estimated revenue of Rs 600 crore annually.

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