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Last Updated : Mar 27, 2018 03:53 PM IST | Source: CNBC-TV18

Expect 20% YoY revenue growth for next 3 years: Vinati Organics

The EBITDA margins for FY18 would be around 28-29 percent, said Vinati Saraf Mutreja, ED, Vinati Organics.

CNBC TV18 @moneycontrolcom

Vinati Organics was up in trade on Tuesday on back of a PhillipCap note that upgraded the stock to a buy with a target price of Rs 1000.

Vinati Saraf Mutreja, ED, Vinati Organics is upbeat on the revenue and profit growth in the coming years on back of the current and new products.  Giving guidance for revenues and profits, she said it will be a growth of 20 percent year on  year for the next three years. Expect revenues of around Rs 1500-1700 crore in three years, she added.

In an interview to CNBC-TV18 she said for FY19 the revenue growth will mainly come from existing products and growth from new products like Butyl Phenol and Para Amino Phenol (PAP) will flow through in FY20-FY21 onwards.

She said for FY18 they expect total sales growth of 15 percent led by demand in 2-Acrylamido 2 Methylpropane Sulfonic Acid (ATBS) because the largest competitor in that segment exited the business from December.

The entire market share volume of 15-20 percent of the competitor has flown into the company, said Mutreja. Therefore, ATBS volumes for the company have gone up 20 percent and for next year they will go up by another 20 percent.

The maximum off-take for customized products were seen in fourth quarter, which will be reflected in the Q4 numbers, she said.

Talking about their oldest product Isobutyl Benzene (IBB), she said in FY18 the sales volumes were low compared to FY17 because some of the customers were shut down and were undergoing debottlenecking but now that is in place, so in FY19 sales volumes will be 25 percent higher than FY18.

The current market share in ATBS has gone up from 45 to 65 percent and could go to 70 percent.

On margin front, she said EBITDA margins for FY18 would be around 28-29 percent.
First Published on Mar 27, 2018 03:41 pm
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