This large-cap specialty chemical stock jumped 10% after robust Q3 results driven by higher volumes, capacity expansion, and improved price realization.
Share Price Movement
With a market capitalization of ₹20,550 Crore, the stock of Navin Fluorine International opened at ₹ 4195, and after opening, it made an intraday high of 10% at ₹4299 and later closed 6% up at ₹ 4145.
Q3FY25 Results
The company reported a 21.2% YoY increase in revenue from ₹500 Crore in Q3FY24 to ₹606 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 17% in revenue from ₹519 Crore in the previous quarter.
Their Net profit too saw an upside with a 8% YoY increase from ₹78 Crore to ₹84 Crore for the same period. Their net profits saw a significant increase of 42% from ₹59 Crore for the same period.
Basic EPS has increased by 7% YoY from 15.74 to 16.86 in Q3FY25, the EBITDA Margin increased from 15.13% to 24.30%, and the PBT Margin increased from 6.62% to 16.09% for the same period.
Operational Highlights
On a YoY basis, Revenue growth for their HPP (High-Performance Products) stood at 22%, For Specialty products at 26%, and for CDMO (Contract Development and Manufacturing Organization) at 8%.
HPP vertical of the company in the current quarter saw higher volume for HFO and R32 with improved price realization across products. Additionally, the company capex updates are R32 with an investment of ₹84 crores, scheduled for commissioning by February 2025, and AHF with an investment of ₹450 crores, expected to be commissioned by FY26.
The specialty Chemicals vertical had higher capacity utilization at Dahej and Surat the capex updates for both plants namely, Dahej with ₹540 Crores, commercial production started in November 2024 and Surat with ₹30 Crores, First dispatch expected in Q4FY25.
CDMO has a strong order book position for Q4FY25 from both the EU and the US, Capex for cGMP4 stands at ₹288 Crore, with Phase 1 capex of ₹160 Crore on track to the commission by the end of Q3FY26.
To further drive the company’s growth it has a robust infrastructure that includes Manufacturing, Fluorination, In-house R&D, and Raw material sourcing.
Potential Recovery in the Chemical Industry
The chemical industry has been underperforming the market benchmarks for the past three years due to inconsistent global & domestic demand, and profit margin pressure because of high raw material prices.
However, there is significant potential for recovery driven by factors such as the China+1 strategy, government policies like PLI, fall in raw material prices, capacity expansions, and new product launches.
About the Company
Navin Fluorine International Limited was incorporated on June 25th, 1998. Being a flagship, the Company belongs to a reputed industrial house of Padmanabh Mafatlal Group in India. It has largest integrated fluorochemicals complex in India, since 1967.
The Company primarily focuses on fluorine chemistry – producing refrigeration gases, chemicals, inorganic bulk fluorides, and specialty organofluorines and offers Contract Research and manufacturing services.
Written By Abhishek Das
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