TANFAC
INDUSTRIES LTD
ANNUAL
REPORT AND
Q2 FY 19 RESULTS
Q2
RESULTS REVIEW
|
TANFAC IND
|
Sep '18
|
Jun '18
|
Mar '18
|
Dec '17
|
Sep '17
|
YOY
|
QOQ
|
|
Net Sales
|
54.92
|
55.77
|
47.75
|
38.67
|
40.27
|
36.38
|
-1.52
|
|
P/L Before Tax
|
11.7
|
13.08
|
2.32
|
2.92
|
2.19
|
434.25
|
-10.55
|
|
Net Profit
|
11.7
|
13.08
|
2.3
|
2.82
|
2.19
|
434.25
|
-10.55
|
|
Equity Share Capital
|
9.98
|
9.98
|
9.98
|
9.98
|
9.98
|
0
|
0
|
|
Diluted EPS
|
11.73
|
13.12
|
1.92
|
2.87
|
2.24
|
423.66
|
-10.59
|
|
MP
|
313
|
||||||
|
PE
|
6.6709
|
||||||
|
VOL-BSE
|
60878
|
||||||
|
52 W L H
|
96
|
403
|
|||||
|
FV
|
10
|
||||||
|
121118
|
1 week
|
2 week
|
1 month
|
3 month
|
6 month
|
9 month
|
1 year
|
|
Price
|
283.05
|
299
|
269.6
|
197.3
|
113.4
|
117.35
|
110.45
|
|
Gain / Loss
|
10.40%
|
4.52%
|
15.91%
|
58.39%
|
175.57%
|
166.30%
|
182.93%
|
5
YEARS CAGR UP 9% FY
14- FY 18
REVENUE : 116.3
TO 165.4 Crs
WBITDA : 10
TO 20.7 Crs 20% UP
NET PROFIT : -3
Crs TO 9.7 Crs 194% UP
D : E : 1.9;
63% DOWN
DIRECTORS : A.K.AGARWALA; V.T.MOORTHY
CEO : K.SENDHIL NATHAN
OVERVIEW
The Company’s sales
performance had increased by 19% due to increase in sales volume and also
increase in prices of main products viz., HF, Sulphuric Acid & Aluminum
Fluoride.
Some of the initiatives taken by the company during the
last three years were:
• Focus & Penetration on PV grade DHF and Specialty
Fluorides.
• Increase in export volume of HF to existing and new
markets.
• Negotiation with key Raw Material suppliers for
reduction in prices compared to international price.
• Tight control on Working Capital to reduce overall
debt.
• Reduction in Finance Cost.
• Manpower optimization
• Expending geography base for sourcing Flours par
Company continues to face stiff competition from China
which affects the sales realization and margin in HF from both domestic and
overseas markets. However, these were offset by the steps taken by the company
as explained above.
Though the prices of main raw materials – Fluorspar &
Sulphur had increased steeply , the Company managed to significantly improve the
profitability through optimization of product mix and judicious choice of
customers, new market penetration and continuous improvements in reducing the
fuel and energy consumption.
Export turnover was marginally higher at Rs.18.85
crores, against Rs.18.45 crores in the previous year .
NET
PROFIT
Net profit for the
year was significantly higher at Rs. 9.70 crores against Rs. 3.29 crores during
the previous year.
RESERVES
With the help of strong performances during the year,
the Company had wiped out its entire brought forward losses of previous years
and ended with a positive reserves of Rs. 2.66 crores, clearly indicating the
turnaround of the company.
OPERATIONAL
RISK:
(a) Company’s most significant exposure relates to the
US Dollar, since the prices of key raw materials - Fluorspar and Sulphur are
impacted by the movement of US Dollar.
Fluorspar is imported. High dependence on China for
Fluorspar which is promoting export of more value-added products puts pressure
on the availability and margins Mitigation: The Company has expanded vendor
base of Chinese origin. The company has also developed sources from other geographies
and expanded relationship to reduce dependency on Chinese origin. The company
is continuously exploring other options.
(b) Volatility in HF Demand for conventional application
and downward trend in end users segment.
Mitigation: Focus on PV & specialty grade HF and
specialty Fluorides. Retain existing customers through competitive pricing.
Expand market of HF in Asia Pacific markets and
increase export volumes. Coordinate with domestic players for healthy competition.
EXPORTS:
We are optimistic about the outlook for exports in coming
years.
Company expects further reduction in the Finance Cost during
next financial year.
aims to further increase the market penetration of
these products during the next financial year.
HYDROFLUORIC
ACID & SPECIALTY FLUORIDES:
Your company continues to widen the Customer base and
has also made significant progress in stringent specialty applications with 28%
growth in volume during FY’18. The markets remain oversupplied and your company
will identify value added downstream products. This will also reduce our over
dependence on traditional markets
SULPHURIC
ACID:
had robust performance in Sulphuric Acid. sales and
contributions were much higher than budget. Production efficiencies have
improved and are well poised to perform better in coming years
