Navin Fluorine Q2 Review - Specialty, Inorganics Supported Growth But Margins Dented: KRChoksey

KRChoksey Report

Navin Fluorine International Ltd.'s contribution from high business remained at 63% in Q2 FY22. In H1 FY22 it delivered a topline growth of 21% on YoY basis.

Specialty business continued to deliver strong performance by showing a growth of 19% in Q2 FY22 YoY basis which came at Rs 1,220 million. Business growth from this segment was mainly driven by growth in international sales (54% of its sales).

During the quarter, CRAMS saw de-growth of 17% YoY but overall in H1 FY22 it was +12% to Rs 1,490 million, supported by repeat orders. We believe new customer development across Europe and U.S., focus on expanding project pipeline will bring traction in this business in the coming years.

Legacy business – good traction seen from end user industries, both refrigerant business as well as inorganic fluorides supported the topline showing a jump of 11% and 56% YoY respectively in H1 FY22.

Export business due to higher logistics costs dented the growth in refrigerant business in Q2 FY22 (-4%) YoY but realisations are expected to shoot up due to rising gas prices which should augur well for the company.

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