Chemcon Speciality Chemicals Ltd

- As per the transcript from February 9, 2022, Chemcon Speciality Chemicals Limited indicated that the capital expenditure (Capex) for Plant 10 will be about Rs. 15 Crores and will be funded from internal accruals. - Regarding IPO proceeds, they have about Rs. 55 Crores still unutilized, which will cover working capital needs for plants 8 and 9. - The company stated they do not foresee taking up any additional debt for the completion of Plants 9 and 10. - There was no mention of any new equity fundraising plans in the discussion. - Overall, the company appears focused on using internal funds and existing IPO proceeds for upcoming expansions without current plans for fresh debt or equity raising.

- Completed capex of about Rs.41 Crores on plant number eight and nine as part of IPO proceeds. - Plant number eight has started production; expansion of plant nine is in progress and expected to commercialize by Q1 FY2023. - Plant number ten mechanical work has started for pharma intermediate products; capital expenditure for P10 estimated at Rs.15 Crores, to be funded from internal accruals. - No additional debt planned for completing P9 and P10; available IPO funds (~Rs.55 Crores) and internal accruals suffice. - Added capacity of 1200 MTPA at P8 for CMIC to become the world’s largest producer at 3000 MTPA. - Bromine plant awaiting pollution control permissions to start manufacturing bromine-based products in P8; new product launch expected from Q1 FY2023 after clearance. - Investment aimed at import substitution and expanding domestic/domestic export product portfolio.

- Expect around 25% growth in sales/revenue in the next quarters or nine-month period (Kamal Aggarwal). - Bromide business projected to generate around Rs.70 Crores revenue in 2023 with good margins due to rising crude prices and raw material contracts. - New products like Guanine (plant 9) and others in plant 10 expected to contribute significantly to revenue. - CMIC capacity expansion to 3000 metric tonnes p.a., making Chemcon the largest domestic producer; import substitution opportunity indicates bright future. - TMCS captive production to support expanded HMDS volumes, improving margins but not topline. - High purity HMDS commercial supply started primarily for rubber and pharmaceutical markets; semiconductor segment yet to pick up. - 4 CBC and 2,5 DHT products still in preliminary stages but expected to perform well soon. - Plant 8 and Plant 9 expansions slated for Q1 FY2023, enabling increased production volumes.

- Chemcon expects about 25% growth (Kamal Aggarwal, Page 17). - The company has maintained strong PAT growth despite production shutdowns; nine months PAT grew from Rs. 40.9 Cr to Rs. 41.5 Cr even with 45 days production loss (Page 16). - New product launches like Guanine and expansion of plants 9 and 10 are expected to enhance revenue streams (Page 18). - Bromide business is projected to contribute around Rs. 70 Cr in FY 2023 with improving capacity utilization and margins (Page 13). - The TMCS facility's contribution is expected to improve bottom lines by reducing raw material import costs (Page 12). - High purity HMDS supply to rubber industry ongoing; semiconductor applications expected to scale, contributing to higher margins (Pages 8 and 11). - Payback period for recent capex is less than 1.5 years, indicating strong profitability (Page 13). - Overall focus remains on bottomline growth and shareholder value creation (Page 16).

- For CMIC, the company has an order book and dispatch schedules for the current quarter sufficient to run full production capacity. - TMCS production at Plant 8 has started and CMIC production is expected by the end of the current month. - High purity HMDS has started commercial supply mainly in the rubber industry; semiconductor approval is still pending. - 2,5 DHT and 4 CBC products are still in preliminary stages, with efforts to approach new clients and explore international markets ongoing. - There are very good inquiries available for the bromide business for supplies in 2023. - The bromide segment expects a business turnover of around Rs.70 crore to Rs.80 crore in 2023, with expectations of increased demand due to crude price trends. - Overall, the company is working on incremental products and expanding global footprint with several products in the pipeline for commercialization by Q1 2023 and onwards.