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Vinati Organics Ltd - 524200 - Announcement under Regulation 30 (LODR)-Newspaper Publication

 Intimation to Stock Exchanges regarding publication of Notice related to AGM, Dividend and other related matters Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith copies of public Notice of the 32nd AGM, Dividend and other related matters, published on June 11, 2021, in Free Press (English Newspaper) and Navshakti (Marathi Newspaper). You are requested to take on record the same and acknowledge the receipt.
11-06-2021
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Vinati Organics Ltd - 524200 - Intimation Of Book Closure Date

 Intimation of Book Closure date
10-06-2021
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Vinati Organics Ltd - 524200 - Notice Of Book Closure, Payment Of Dividend And Annual General Meeting For The Financial Year Ended 31St March, 2021.

 Notice of Book Closure, Payment of Dividend and Annual General Meeting for the Financial Year ended 31st March, 2021.
10-06-2021
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Vinati Organics Ltd - 524200 - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

 Sub.: Intimation regarding loss of share certificate Ref.: Regulation 39(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
27-05-2021
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VINATI ORGANICS LTD.-$ - 524200 - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

 Sub.: Intimation regarding loss of share certificate Ref.: Regulation 39(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
27-05-2021

Can new compounds be the growth catalyst for Vinati Organics?

 The specialty chemicals space has been gaining traction, and Vinati Organics has emerged as one of the top players in the sector. The company’s Q4FY21 results however fell short of expectations, compared to the trend shown by the company in the past few years. The overall revenue for FY21 also saw a declining trend and part of this can be attributed to the global slowdown due to the Covid19 pandemic. For the results of this quarter Q4FY21, a major factor is a high dependence on a few products. Demand for one of the highest contributing products, ATBS (2-Acrylamido 2-Methylpropanesulfonic Acid) slowed down due to lower purchases in the oil and gas industry, and the impact of this is seen in the numbers. When compared to peers, Vinati Organics fares better than some larger players in the chemicals space like Tata Chemicals and Godrej Industries in terms of YoY revenue and net profit growth. But it falls short when compared with the market leader Deepak Nitrite, whose YoY net profit grew by 68.3% while Vinati Organics’ profits fell 5%. Quick Takes Revenues grew 9.5% YoY basis with total revenue in Q4FY21 at Rs 286.3 crore Net profit declined by 5% on a YoY basis to Rs 70.9 crore as compared to Rs 110 crore Highest quarterly sales of IB (isobutyl benzene), maintaining its global 70% market share Revenues grow but profits decline YoY Revenues in Q4FY21 surpassed the revenues from the pre Covid period of Q4FY20. But at the same time, net profits have not seen the same pattern. During Q4FY21, the rising cost of raw materials dented profitability as these were absorbed by the company in this quarter. The company has a policy of quarterly contracts and hence the incremental rise or fall in raw materials is passed on to customers only in the next quarter. The demand for ATBS (2-Acrylamido 2-Methylpropanesulfonic Acid), which is the highest revenue and margin contributing product, fell in Q4FY21 due to subdued demand from the oil and gas sector. The incremental revenue was contributed by IB (isobutyl benzene) and its derivatives. IB recorded the highest sales in FY21 retaining global market share of 70% and the management expects a growth of 5-10% on a YoY basis going ahead. On an annual basis, the revenues have been falling for the last two years. Despite this, in the last three years, the annual operating profit margins and the annual EBITDA margins have been consistently above 35%. Leadership in products - can it be sustained? Vinati Organics has the distinction of being the world’s largest producer of two chemical compounds, i.e. IB (isobutyl benzene) & ATBS (2-Acrylamido 2-Methylpropanesulfonic Acid). The company has a global market share of 70% in IB and 80% in ATBS. Almost all of the ATBS production (95%) is exported. ATBS finds applications in synthetic fibres, water treatment, construction chemicals, hydrogels for medical applications, personal care products, emulsion coatings, and adhesives. IB is used in pharmaceuticals, specialty solvents, paint & coatings, and agrochemicals. The fall in revenues in FY21 was on account of lower demand for ATBS. The management guided for an 80-85% YoY growth in ATBS revenues in FY22 on a base of FY21, which translates to a 30% growth over FY20. According to the management, the demand for ATBS is expected to rise in the oil and gas sector and they expect revenues from ATBS to pick up from Q1FY22. The growth story of this company till now was primarily driven by IB and ATBS. With the results of this financial year and the challenges faced during recent times, it is clear that growth in these two products has a limit going forward. While the company is looking at expansion in these products, it has also built a strategy of forward integration on the base of these products. Vinati Organics' goal is to build an integrated business model. Its two new products and their derivatives are butyl phenols (BP) and antioxidants (AO). These are downstream derivatives of isobutylene (IB). The manufacturing process for AOs will be a doubly backward integrated process, where the final AO products are derivatives of BPs, which are derivatives of IB. The entire process would offer efficiencies of scale in production as well as cost optimisation. The company plans to leverage its experience with IB and ATBS with the next line of products and has planned a capex of Rs 300 crore over the next 3-4 years to meet this objective. Butyl Phenols - Eyeing Indian market leadership The company is planning to manufacture four butyl phenol (BP) products. Two of the four BPs will be used for captive consumption as part of a forward integration strategy to manufacture AOs. BPs are not manufactured in India and Vinati Organics will be the first player to manufacture them. Till now, these were fully imported and the domestic supply will substitute imports, with the expectation of capturing a huge domestic market. BPs are used in diverse end-user industries like fragrances, fuel additives, polymers & resins. These are also being competitively priced by the company as a new entrant into the segment. The BP project was delayed by six to eight months due to the lockdown in FY21. This has now been completed and production will commence from Q1FY22. The management expects a revenue potential of Rs 300 crore over the next 3-5 years from domestic consumption as well as exports. Aiming to be the largest Indian manufacturer and exporter in antioxidants Vinati Organics’ board recently approved the merger of Veeral Additives, fully-owned by the promoters of Vinati Organics. Veeral Additives manufactures three types of antioxidants. According to the company, the demand for antioxidants in India at present is 10,000 MT (metric tonnes), while its plant capacity is 24,000 MT. This antioxidants manufacturing plant would be the largest in India. The management estimates the revenue potential of Rs 500 crore over the next 3-5 years. The merger is still awaiting regulatory approvals. Capacity Expansion - Gearing up for growing demand across products Foreseeing demand coming from various sectors of application, the production capacity of ATBS (2-Acrylamido 2-Methylpropanesulfonic Acid) has been increased from the existing 26,000 MT (Metric Tonnes) to 40,000 MT. With ATBS already one of the strongest and highest margin products, the company has guided that they already have strong demand coming from the oil and gas sector and have heavy order booking for the next quarter Q1FY22. With a new capacity of 39,000 MT for Butyl Phenols (BP), this will be the first of the facilities in India to manufacture BPs. The domestic demand stands at around 24,000 MT, while the global demand is around 4,00,000 MT. This capacity is planned to fully capture the domestic demand as well as gain a slice of the pie of the global demand. Another capacity addition to the new products line includes 24,000 MT for Antioxidants (AO). The domestic demand stands at 10,000 MT, while the global demand is around 3,00,000 MT. AO’s are also manufactured in India by HPL Additives with a capacity of 8,000 MT and Songwon Specialties India with a capacity of 1,000 MT. When compared to competitors, the capacity addition by Vinati Organics is much higher. The management guided that based on the strengths of existing products and newly introduced products, the target is to double revenues over the next three years. The management also said that this would be reviewed on an incremental basis every year based on product performance. While the plans look very ambitious, new products take time to get established in the market. Finding customers and confirming orders would take time, and it would be at least a couple of years before a system and cycle for these products gets set. While FY21 was challenging on its own terms, the company looks better positioned in FY22 on account of enhanced capacities and new initiatives. Investors will keenly watch the next few quarters to see if the new products are adding to Vinati Organics’ topline.
26-05-2021
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Vinati Organics Ltd - 524200 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation

 Analyst/Investor conference call for 4QFY21 Earnings Call Ref: Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations, 2015 (''Listing Regulations'') We wish to inform you that Pursuant to Regulation 30 read with Schedule III of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations, 2015 (listing Regulations''), the conference call with Analysts/Investors has been scheduled on Monday, May 17, 2021 at 11:00 am for 4QFY21 Earnings.
14-05-2021
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VINATI ORGANICS LTD.-$ - 524200 - Announcement under Regulation 30 (LODR)-Newspaper Publication

 Compliance under Regulation 47 of the Securities and exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015 ("Listing regulations") Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, please find enclosed copies of Audited Financial Results of the company for the quarter/year ended 31 st March, 2021 published in the following newspapers on 14 th May, 2021. 1. The Economic Times 2. The Maharashtra Times Kindly take note of the same
14-05-2021
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Vinati Organics Ltd - 524200 - Corporate Action-Board approves Dividend

 Board approves final dividend of Rs.6/- per equity share of face value of Re.1/- each (600%) for the financial year ended March 31, 2021, which will be paid / dispatched to the eligible shareholders of the Company registered in the Register of members of the Company as on the record date to be decided, within 30 days from the conclusion of the 32nd Annual General Meeting, subject to the approval of the Shareholders.
13-05-2021
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Vinati Organics Ltd - 524200 - Outcome Of Board Meeting

 Outcome of Board Meeting
13-05-2021
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