NAVINFLUORNSEQ4 & FY 2024-25May 16, 2025

Navin Fluorine International Limited

7,617words
106turns
10analyst exchanges
5executives
Management on call
Vishad Mafatlal
CHAIRMAN – NAVIN FLUORINE INTERNATIONAL LIMITED
Nitin Kulkarni
MANAGING DIRECTOR – NAVIN FLUORINE INTERNATIONAL LIMITED
Anish Ganatra
CHIEF FINANCIAL OFFICER – NAVIN FLUORINE INTERNATIONAL LIMITED
Payal Dave
INVESTOR RELATIONS ADVISOR – MUFG INTIME IR
Bhavya Shah
MUFG INTIME IR
Key numbers — 40 extracted
INR2,349 crore
gic levers came together to deliver a robust performance. We reported our highest ever revenue of INR2,349 crores and highest ever quarterly revenues of INR701 crores with EBITDA margins in the last quarter, re
INR701 crore
e. We reported our highest ever revenue of INR2,349 crores and highest ever quarterly revenues of INR701 crores with EBITDA margins in the last quarter, reaching 25.5%. We have adhered to our financial fram
25.5%
ighest ever quarterly revenues of INR701 crores with EBITDA margins in the last quarter, reaching 25.5%. We have adhered to our financial framework maintaining our debt-to-equity ratio of 0.37 and gene
INR571 crore
l framework maintaining our debt-to-equity ratio of 0.37 and generating operating cash flows of INR571 crores in the past year. I am pleased to announce our strategic agreement with Chemours to produce thei
14 million
eement, Navin Fluorine will establish manufacturing facility at Surat at an estimated capex of US$14 million, including US$5 million of contribution by Chemours. The project is expected to be operational du
5 million
ll establish manufacturing facility at Surat at an estimated capex of US$14 million, including US$5 million of contribution by Chemours. The project is expected to be operational during quarter 1 of FY '27
rs,
ve good order visibility for FY '26. After successful validation by our global agrochemical partners, we are also introducing two fluoro intermediates for their new innovative AI in FY '26.
INR30 crore
oject, which commenced in December 2024 and is currently ramping up well. In Surat, following our INR30 crores expansion, we initiated for dispatch of this particular product in February 2025. The CDMO bus
INR288 crore
wth has been driven by both repeat orders and new project wins. Looking ahead, our cGMP4 capex of INR288 crores is progressing as planned. Phase 1, which involves INR160 crores of investment is on track to be
INR160 crore
ooking ahead, our cGMP4 capex of INR288 crores is progressing as planned. Phase 1, which involves INR160 crores of investment is on track to be commissioned by end of quarter 3 FY '26. Overall, I want to em
16%
FY '25. Quarterly performance, we reported revenues of INR701 crores in Q4 FY '25, an increase of 16% year-on- year and quarter-on-quarter, led by an increase in revenue across all the verticals. Op
INR179 crore
an increase in revenue across all the verticals. Operating EBITDA for Q4 FY '25 was approximately INR179 crores, a growth of 62% year-on- year. Operating EBITDA margin stood at 25.5% as against 18.3% in Q4 of
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Guidance — 20 items
Vishad Mafatlal
opening
“We are pleased to announce our R32 project commercialized in March 2025 and is currently operating at optimal capacity.”
Vishad Mafatlal
opening
“Our ongoing AHF project is progressing well with the completion expected by Q2 FY '26.”
Nitin Kulkarni
opening
“The project is expected to be operational during quarter 1 of FY '27.”
Nitin Kulkarni
opening
“Our AHF project is expected to be commissioned by quarter 2 of FY '26.”
Nitin Kulkarni
opening
“Commercial production at our Dahej facility for fluorospecialty project, which commenced in December 2024 and is currently ramping up well.”
Nitin Kulkarni
opening
“This growth has been driven by both repeat orders and new project wins.”
Nitin Kulkarni
opening
“Phase 1, which involves INR160 crores of investment is on track to be commissioned by end of quarter 3 FY '26.”
Nitin Kulkarni
opening
“We are advancing with disciplined project execution and targeted capital investments, all within a well-defined financial structure.”
Anish Ganatra
qa
“And so like we said in our announcement, as this market sort of adoption accelerates, there will be a conversation for a greater capacity.”
Anish Ganatra
qa
“So if you can qualitatively talk about with respect to because we are putting a lot of capex in the space, qualitatively how many products or what is the kind of scale that we can expect in an accelerated mode in the period?”
Risks & concerns — 5 flagged
These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
— Bhavya Shah
As of now, we've not seen any sort of any sort of headwind as a result of the tariffs.
— Anish Ganatra
So in terms of -- there are different sort of things, but when you sort of look -- it's difficult to give you an average because what happens is our investment is not consistently the same in different verticals, right?
— Anish Ganatra
Though, there is a volume uptick, but price pressure is going to remain.
— Nitin Kulkarni
I mean there's so much of uncertainty around us that today, we are being cautious in not guiding any number that's different.
— Anish Ganatra
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Q&A — 10 exchanges
Q
All right. Thanks, Sudarshan. So yes, we are also equally excited with the tie-up on Chemours and the fact that it opens up a completely new product line for us. As mentioned by Vishad Bhai and reiterated by Nitin, this is a foray by Navin into the advanced materials play. Though it's not something that's happened by accident. We've always indicated this as part of a strategic priority as we keep progressing on our growth journey. Now the size of capex and scalability, etc I think, again, we've said this very clearly in our disclosures too, that this is the initial capacity to help Chemours wi
Nitin Kulkarni
Yes. So basically, what Navin is demonstrating is our ability to understand, absorb and commercialize the proprietary products based on the various platforms on which we are operating. So this particular venture has demonstrated that Navin got the skill set from a gram level to the commercialization of the product, where at each and every state, we have the required infrastructure, the analytical tools, the skill set, the people to gain the confidence and demonstrate on the ground, our ability to make the product, which is required for such a high- end technology. So our job is here to demonst
Q
Hi sir, thank you so much for the presentation and congratulations on a great set of results. I'll probably extend the previous participant's question on CDMO. Given the progress that you've made with the new customers, can you give us a sense of how we should be thinking of the CDMO revenues into fiscal '26-'27 vis-a-vis where we are in Q4, which is already a great start. So just some thoughts in terms of how that could evolve. And this is an extension to that. You had mentioned that from a strategic perspective, you're shifting into more late-stage molecules to reduce the lumpy nature of CDM
Anish Ganatra
So Vivek, thanks for the question again. I mean on the CDMO side, as we've said before, the strategy was to balance early stage and late-stage molecules. Late stage and commercial molecules are going to add scale and growth into this business, and that's where our focus was. This will remove the lumpiness, as you rightly said. We will be looking to sort of continuing to hold our aspirational target to be $100 million. Like I said, $100 million is not -- it's a milestone. It's not the destination. So effectively, even if we are 90, it doesn't change the dial. In fact, it's a tipping point for C
Q
Good evening sir, Thanks I got a few, but will restrict to two. First, on the BUSS ChemTech, we did announce the arrangement and exclusive technology transfer. We are already building an HF capacity, there should be more distillation, right, to bring in the purity here. We are talking about PPB level or it is still PPM level? That's number one. Number two, what really the application does it have in solar and on the electronics side, what really characteristics or the effect does it add? And how big the opportunity is for us? Because I think India is adding a lot of solar capacity. In that bac
Anish Ganatra
Yes. Thanks, Sanjesh. I will request Nitin to take this. So Sanjesh, here we are talking about the N3 and N5 specification. We are not talking of only PPM or PPB, PPB is part of the N3 and N5. So we are really talking about the N5 grid, which goes into the high electronic grid. So this is not just the distillation to make high-purity product. It is actually to meet the N5 grade of electronic industry. That is the reason we are talking about the opportunity not only within the Indian space, but outside India. And second, N3 that is what we currently talk about the solar application. And definit
Q
My first question was if you could just give some sense around the R32 market, sensing that pricing has been quite healthy there. So if you could give us some sense in terms of how the pricing dynamics are today and just your outlook for the next maybe FY '26 or for the next few quarters, how that could shape up? And I think you also did indicate that you are discussing with some global clients for some sort of a partnerships. So if you could elaborate a bit there as well?
Anish Ganatra
So Madhav, thanks for that. I mean, see, R32, we've always stayed away from giving specific pricing guidance because, frankly, price is a factor of demand and supply, right? And when we start looking at demand factors that influence the pricing, we remain very, very positive on it. And we see first-time evidence of it. I mean, if you think about our new capacity coming on board, I mean, we've not had -- we've had sort of multiple inquiries on the capacity much before even the capacity came on stream. And in fact, in the last call, if you remember, we did indicate that some of these inquiries a
Q
Congrats on very strong set of numbers. Two questions from my side. First, as per my understanding, production of electronic grade HF first requires gasification of anhydrous HF. So would the tech tie-up enable us to do the same? Or have you developed that in-house?
Anish Ganatra
Krishan, I'll ask Nitin to answer that. I didn't get you, Krishan, what you are asking. So I was just asking the gasification of the anhydrous HF is required in production of electronic grade HF, So the tie-up that you have done? So it is required for our normal HF production also. Okay. So that is in-house. And secondly, on CDMO for the commercial order from the U.S. major, would you need a separate capex or not now? No, not now. Not now.
Q
Thanks for the opportunity.and happy to know that we have achieved the 25% exit EBITDA run rate. First question is looking at the balance sheet, we have a gross block of around INR3,000 crores, what is the kind of asset terms on an aggregate basis, we are looking from this gross block. And normal circumstances, when can we achieve that peak revenue potential?
Anish Ganatra
So I think, again, Rohit, I mean, there's assets over there, like if you look at the -- any asset that we commissioned, we talked 2 years to get to par, right? Now it's just in this last year, if you look at it, we are talking of the chloro specialty capex coming on board, which was about INR500-odd crores in terms of what we had approved for and also the R32. Now the asset turns vary by businesses. So if you look at HPP, we are seeing that asset turns of 2x. Again, all of this is market-driven as well, right? And I'm sure you understand that, where we play the product that it can be 2x, it ca
Q
Congratulations for great set of numbers. First question on the gross margin front. Now I'm looking across the three business segments. So CDMO typically is a higher margin business. In HPP, you have the benefit of pricing coming in there, it may not be this quarter, maybe next quarter. So but your guidance is still the similar range of 23% to 26%. So is it the specialty chemical part wherein there is some bit of pricing pressures or maybe some guidance there will be helpful?
Nitin Kulkarni
So, if you look at the current quarter with numbers published by the global AI, they have shown us some better number, but at the cost of the raw material cost improvement. So pricing pressure is quite heavy. Though, there is a volume uptick, but price pressure is going to remain. So we have to address all the challenges to keep our... Yes, Ankur while sort of reflecting, but you also sort of should bear this in mind that we don't live in a certain world. I can't take a linear extrapolation. I mean there's so much of uncertainty around us that today, we are being cautious in not guiding any nu
Q
The depreciation and finance costs, the significant increase in this quarter. Is that largely because of the commissioning of the fluoro specialty project, the INR540 crores. And for the year ahead, if you could please help us with any broad estimate of where these two line items might go in the context of what we are expecting to capitalize. Also, if you could just share a number on the capex budget for fiscal '26?
Anish Ganatra
All right. So your question about depreciation, you're right, the increase does reflect the capitalization coming in from the fluoro speciality project. And if I had to give you a sense, you should probably look at about INR30, INR35 crores, INR35 crores per quarter as a run rate. So this is for the assets that have been capitalized. And we're talking about INR140-odd crores and roughly about INR130 crores, INR135 crores for the interest as well for the whole year. Now of course, that interest will keep coming down as the debt gets paid out. So as we stand now, that's where we are. The capex p
Q
My question is on Opteon. So in terms of the technology readiness and the Chemours level, is this technology, is that TRL 7 to 9?
Anish Ganatra
There's a lot of background noise at your end. But if I understood you're asking is the technology… Is it better now? Sorry, go on, what was your question? Maybe you can repeat. So what I'm trying to understand in case of Opteon, in the technology level, technology readiness level. Is this technology at Chemours level is like to the level of 7% to 9%, so that you can do a commercial delivery by Q1 '27. Yes, yes. So this is a product we've actually already been making for them in smaller quantities at the moment. And part of the reason, so we've been working with Chemours on this. The partnersh
Q
All right. So again, thank you all for taking the time today evening. Really appreciate the quality of the questions and the interactions and look forward to our next sort of interaction on those, yes. Thank you. Thanks to all.
Nitin Kulkarni
Thanks, everyone.
Speaking time
Anish Ganatra
43
Nitin Kulkarni
14
Moderator
12
Amar Maurya
8
Sanjesh Jain
6
Madhav
6
Rohit Nagraj
4
Krishan Parwani
3
Ankur Periwal
3
Abhijit Akella
3
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Opening remarks
Bhavya Shah
Thank you. Welcome to the Q4 and FY '25 Earnings Conference Call. Today on the call, we have with us Mr. Vishad Mafatlal, Chairman; Mr. Nitin Kulkarni, Managing Director; and Mr. Anish Ganatra, Chief Financial Officer of Navin Fluorine International Limited. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinion and expectations as of today. Actual results may differ materially. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Our detailed Safe Harbor statement is given on Page 2 of investor presentation of the company, which has been uploaded on the stock exchange and company website. With this, I now hand over the call to Mr. Vishad Mafatlal for his opening remarks. Over to you, sir.
Vishad Mafatlal
Good evening, ladies and gentlemen. It gives me great pleasure to welcome all of you to Navin Fluorine's Q4 and full year FY '25 Earnings Call. I am joined today by our MD, Mr. Nitin Kulkarni; our CFO, Mr. Anish Ganatra and Ms. Payal Dave from MUFG, our Investor Relations Advisor. Let me begin by saying that this has been a good quarter for Navin Fluorine, a quarter where multiple strategic levers came together to deliver a robust performance. We reported our highest ever revenue of INR2,349 crores and highest ever quarterly revenues of INR701 crores with EBITDA margins in the last quarter, reaching 25.5%. We have adhered to our financial framework maintaining our debt-to-equity ratio of 0.37 and generating operating cash flows of INR571 crores in the past year. I am pleased to announce our strategic agreement with Chemours to produce their proprietary product, Opteon, a two-phase immersion cooling fluid. This manufacturing partnership leverages Chemours innovation and Navin's manufact
Nitin Kulkarni
Thank you, Vishad Bhai, and good evening to everyone. A significant development is our strategic agreement with Chemours for the manufacturing of a new two-phase immersion cooling fluid, which is part of their Opteon series. Under the agreement, Navin Fluorine will establish manufacturing facility at Surat at an estimated capex of US$14 million, including US$5 million of contribution by Chemours. The project is expected to be operational during quarter 1 of FY '27. As market adoption deepens Navin Fluorine and Chemours will get into discussions for servicing of potentially higher demand. Our performance in Q4 reflects not just strong market demand, but also the disciplined execution and operational resilience that our team has demonstrated across segments. We have seen sustained momentum across our verticals. In High Performance Products (HPP) we recorded revenue driven by robust demand and improved pricing realization. This quarter, we commercialized second plant of R32. Our AHF proje
Anish Ganatra
Thank you, Nitin. Good evening, all, and I welcome you all once again on the earnings call. Moving on to the financial performance of the company in Q4 and FY '25. Quarterly performance, we reported revenues of INR701 crores in Q4 FY '25, an increase of 16% year-on- year and quarter-on-quarter, led by an increase in revenue across all the verticals. Operating EBITDA for Q4 FY '25 was approximately INR179 crores, a growth of 62% year-on- year. Operating EBITDA margin stood at 25.5% as against 18.3% in Q4 of FY '24. Operating PBT for Q4 FY '25 was INR115 crores as against INR67 crores, an increase of 72%. Profit after tax in Q4 FY '25 stood at INR95 crores as against INR70 crores in Q4 FY '24, an increase of 35%. FY '25 performance. For FY '25 on a consolidated basis, the company reported net operating revenue of INR2,349 crores as against INR2,065 crores in FY '24, reflecting a growth of 14%. Operating EBITDA stood at INR534 crores as against INR398 crores in FY '24, up by 34%. Operatin
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