DMCC Speciality Chemicals Ltd

- Company aims to double revenue from current ~200 crore to ~400 crore once new projects fully ramp up, likely by FY24. - Specialty chemical division targets EBITDA margins of +30% for new products; existing products maintain current margins. - Bulk chemical products have lower margins; initial capacity ramp-up may see margin pressure but long-term margins expected similar to historical levels. - Ongoing CAPEX of ~100 crore (Dahej and Roha plants) expected to support growth; brownfield expansions focus on specialty chemicals, no immediate new bulk chemical CAPEX planned. - Margin impact seen due to recent raw material and freight cost spikes expected to normalize as prices adjust in contracts. - Long-term guidance is to sustain growth within sulfur chemistry with focus on specialty and bulk chemicals and capacity utilization increasing over next 1-2 years. - No explicit EPS forecasts given, but doubling revenues and targeted specialty margins imply improved profitability over medium term.

- Bimal Goculdas mentions good visibility for specialty products, with customers eagerly waiting for capacity to come up (Page 17). - Several contracts exist, but specifics are not publicly disclosed due to confidentiality (Page 17). - Specialty chemical products, particularly sulfones, are becoming substantial, with demand increasing from regions such as Japan, the U.S., and Europe (Page 14). - Multipurpose plants require time to ramp up, including market approvals and scaling from pilot to commercial scale (Page 13). - Overall, the company expects to have all plants commissioned and running by March 2022 with full capacity utilization depending on market conditions (Page 13).

- The company plans to raise debt of around Rs. 70 crore for its ongoing CAPEX. - The expected debt-to-equity ratio for the CAPEX is approximately 2:1 (two-thirds debt, one-third equity). - The interest rate on rupee borrowings is typically around 9%-10%, but with interest rate swaps, the effective rate can be reduced below 5%. - Debt funding is expected to come mostly in the current quarter, with some already recorded post-April. - There is no mention of any new equity fundraising planned at this time. - No plans for additional greenfield sites or CAPEX beyond the current Rs. 100 crore investment are announced, thus limiting further fundraising needs in the immediate future.

- The company is investing about ₹100 crore in expansion across two sites: Dahej and Roha. - At Dahej, two multipurpose plants are being set up with a combined investment of ₹20 crore (₹10 crore each). - The CAPEX aims to double the company's turnover, with Dahej and Roha plants expected to contribute similarly. - Post this CAPEX phase, the company has spare land but no current plans for another greenfield site. - The bulk chemical expansion will be mostly complete with this CAPEX, and future expansions are expected mainly in specialty projects. - Commissioning for some projects (bulk chemicals) expected around June 2021, but specialties will take longer due to market and product approvals. - Debt-to-equity for the CAPEX is expected at a 2:1 ratio, with borrowing costs between 9-10%, potentially lowered via interest rate swaps. - No immediate plans for large investments beyond current CAPEX; focus remains on sulfur chemistry and expanding product lines within it.

- Objective to double revenue once new projects come up, potentially reaching around Rs. 400 crore turnover by FY24. - Sulfuric acid plant at Dahej expected to run at full capacity soon, contributing significantly to revenue. - Specialty chemical products have good visibility with customers eagerly waiting for capacity expansion. - Multipurpose specialty plants will take time to ramp up, with some products scaling faster than others. - Specialty chemical segment targets EBITDA margins above 30% for new products. - Bulk chemicals expected to start first, with commodity chemicals having lower margins initially, followed by stabilization. - Long-term strategy focuses on doubling revenue through CAPEX of around Rs. 100 crore, with Dahej and Roha plants as main production sites. - No major new greenfield sites planned; further growth expected through brownfield expansions focused on specialty chemicals. - Exports aligned with domestic demand; market-agnostic growth approach.