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See FY21 revenues down 10% says Vinati Organics’ MD

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See FY21 revenues down 10% says Vinati Organics’ MD

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Vinati Organics’s second quarter operating profit fell around 20 percent and margins too contracted. Vinati Saraf Mutreja, Managing Director at Vinati Organics discussed the numbers in an interview with CNBC-TV18.

Vinati Organics’s second quarter operating profit fell around 20 percent and margins too contracted. Vinati Saraf Mutreja, Managing Director at Vinati Organics discussed the numbers in an interview with CNBC-TV18.

“Overall for the year, FY21 we can expect about 10 percent dip in sales compared to FY20,” she said.
She expects the March quarter to be better than the September and December quarters.
Vinati Organics expects to see revenues - from its new plant of Butyl Phenol - kicking in from October-November. The capex for Butyl Phenol was done last year. The total expected revenue from this capex is Rs 400 crore, she said. “Most of it will account for only in FY22. In FY21, we can expect about Rs 50-100 crore from this product. Other than that we have announced another capex of Rs 200 crore which we will be investing over the next one year with a total revenue potential of Rs 300 crore starting from FY22 and FY23,” Saraf mentioned.
Oil and gas segment has been down which accounts for about 10-15 percent of the company’s overall revenue. That led to contraction in revenues, she said.
“IBB and Isobutyl has done extremely well in the last six months. So it is just one segment – ATBS – which has not performed well and hence we see the margin contraction because ATBS is a relatively higher margin products for us. We expect this trend to continue for the next six months and hoping some revival starting maybe April next year,” she added.
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