DMCC Speciality Chemicals Ltd

- Currently, the company is not willing to take on new projects or investments until the ongoing CAPEX cycle is complete (expected by April 2022). - They plan to decide on new investments after stabilizing current CAPEX and generating cash flows, likely post-April 2022 or later. - There is no mention of immediate fundraising through debt or equity. - Future investments will depend on government policy, market conditions, and performance of existing projects. - Emphasis is on internal cash generation to fund new specialty chemical projects rather than external fundraising at present.

- Current CAPEX includes five projects to be completed by end of FY22, including a sulphuric acid plant at Dahej, specialty chemical plants, and debottlenecking at Roha. - The sulphuric acid plant (₹50 crores CAPEX) to be commissioned in Q3 FY22. - Multipurpose plant and intermediates plant at Dahej also underway with asset turns of 1.5–2.5x for specialty chemicals. - No further CAPEX planned until current projects stabilize and generate cash flows; next CAPEX round likely post-April 2022. - Future CAPEX will focus more on specialty chemicals, prioritizing better margins over bulk chemicals. - Boric acid plant investment under consideration only if government policy remains controlled; otherwise, no immediate plans. - No investment commitment on sulfones dedicated plant currently; R&D continues. - Company is cautious on new investments pending market and government policy clarity.

- The company expects growth driven primarily by specialty chemicals with better visibility and long-term contracts. - Bulk chemicals, comprising about one-third of the business, have limited price pass-through, leading to stagnant or slight volume growth. - New CAPEX projects (multipurpose plant, debottlenecking, sulphuric acid plant) expected to complete by FY22 end, with ramp-up likely in FY23. - Post completion of current CAPEX, new rounds of CAPEX focusing on specialty chemicals with better margins are planned, possibly starting FY24. - Market demand shows good pull and positive traction, especially in specialty chemicals like amides and sulfones. - Capacity utilization in bulk chemicals plants (acid plants) expected at 70-90%. - Overall, growth in volumes expected once plants ramp up, with ongoing product development and market expansion efforts.

- Earnings growth is expected post-completion of current CAPEX cycle around April 2022, which includes bulk chemicals (sulphuric acid plant) and specialty chemicals projects. - Post-CAPEX stabilization, the company expects higher cash profits enabling further specialty chemical projects with better margins. - Specialty chemicals have better price pass-through abilities, supporting margin improvement. - Bulk chemicals faced margin contraction due to raw material price increase not fully passed on yet; improvement expected in future quarters. - New products like amides and sulfones are gaining traction, contributing to volume and profit growth. - ROCE hurdles for new projects are set around 30%, indicating focus on profitable growth. - Capacity utilization of new plants is anticipated to ramp up gradually in FY23. - Boric acid plant CAPEX decision pending, depending on government policies and market conditions, which could augment downstream volumes and profitability.

The transcript provided does not explicitly mention details about the current or expected order book or pending orders for The Dharamsi Morarji Chemical Company Limited. However, some relevant insights related to market demand and customer visibility are: - Bulk chemicals plants are expected to run at 70% to 90%+ capacity, with customers available for acid plants and debottlenecking units. - Specialty chemicals at Dahej have good visibility on the customer side, indicating steady demand. - The company has received good traction from customers for new products like Amides and some sulfones. - The multipurpose plant and specialty chemical expansions are driven by market pull, signaling existing customer demand. - There is mention of a specific anchor customer under a contractual manufacturing agreement at the multipurpose plant. - Overall, investments are being guided by market demand, but no exact order book or pending order details or values are disclosed in the transcript.