Camlin Fine Sciences Q4 2025 Conference Call #conferencecall #concall #earningscall #camlin

Highlights of the Camelin Fein Science Limited Q4 and FY25 Earnings Conference Call:

1. Delayed but Comprehensive Results Presentation: The company apologized for the delay due to technical issues and emphasized providing detailed results for investor analysis.
2. Business Restructuring and Discontinued Operations:

• Two units (Europe diolic unit and China manufacturing unit) were closed two years ago.
• The company has segregated results into continuing and discontinuing operations, with provisions and impairments already accounted for.
• Discontinued operations are non-recoverable assets, with costs expected to reduce significantly over time.

1. Financial Performance:

• Total turnover for the quarter was ₹37.44 crores, down from ₹43.1 crores last quarter.
• Annualized revenue from core business grew by ~15% YoY to ₹1,439 crores.
• EBITDA margin on core business was approximately 12.5%, with EBITDA of ₹28 crores in FY25.
• Despite declining product prices, margins were maintained due to volume growth, especially in blends and vanillin segments.
• Blends business grew by 17-18% YoY, reaching ₹878 crores.
• Aroma segment showed continued momentum, with FY25 revenue of ₹176 crores, benefiting from anti-dumping duties in US and Europe.

1. Impact of Tariffs and Duties:

• US anti-dumping duty (~131%) and preliminary duties in Europe are expected to favor the company’s pricing and market position.
• European duties are likely to be finalized soon, potentially allowing price increases.
• The company anticipates tariffs will balance out over time, with no significant long-term margin compression expected.

1. Operational Highlights:

• Vanillin capacity utilization is currently 45-50%, with plans to ramp up to 100% over two years.
• The company is controlling inventory and sales strategies to optimize realization prices.
• The gross margin for vanillin is expected to be in the 45-55% range, with potential for margins toward the higher end as capacity utilization improves.
• The company is not planning significant CAPEX in the near term, focusing instead on optimizing existing assets.

1. Strategic Growth and Acquisitions:

• The Vinay acquisition is expected to complete regulatory procedures by July, with high growth potential.
• The company expects to grow blends business by around 20-25% over the next two years, aided by acquisitions like WinPay.
• The blends business is expanding into new geographies, including Middle East, Africa, and parts of Asia.

1. Market Dynamics and Pricing:

• Pricing pressures exist across products due to competition, especially from China.
• The company is cautious about capacity commitments, preferring to wait for favorable pricing before ramping up volumes.
• The European anti-dumping duty is expected to support price increases, with some negotiations ongoing.

1. Inventory and Market Outlook:

• US inventory levels are uncertain but are gradually releasing stock, leading to sales growth.
• The company estimates that approximately 70% of vanillin sales will come from anti-dumping markets (US and Europe), with the rest from other regions.

1. Cost Management and Employee Expenses:

• Employee costs increased by ~25% due to hiring and salary hikes, but significant reductions are expected as discontinued plants are wound down.
• Depreciation increased due to accounting adjustments and lease assets, with no new CAPEX planned.

1. Future Outlook:
   • The company remains optimistic about continued growth, stabilization of markets, and benefits from tariffs.
   • Margins are expected to improve with higher capacity utilization and favorable market conditions.
   • The company is actively engaged in negotiations and strategic planning to capitalize on tariff benefits and new product opportunities.
2. Q&A Insights:
   • The company does not currently have orders for lock feed projects.
   • Market share in blends is fragmented; no specific figures available.
   • The company expects to see a sustainable quarterly run rate for discontinued operations at around ₹50-60 crores, with declining costs over time.
   • The timing for full capacity utilization and volume ramp-up is projected over the next 2-3 years, with a focus on US and European markets.

Overall, Camelin Fein Science demonstrated resilience amid global challenges, with strategic focus on expanding high-margin segments like aroma and blends, managing costs, and leveraging tariff advantages to sustain growth and margins.

Search Keyword: Camlin Fine Sciences share, Camlin Fine Sciences news, Camlin Fine Sciences update, Camlin Fine Sciences business, Camlin Fine Sciences conference call, Camlin Fine Sciences stock, Camlin Fine Sciences share price, Camlin Fine Sciences quarterly results, Camlin Fine Sciences investor update, Camlin Fine Sciences earnings call, Camlin Fine Sciences financials, Camlin Fine Sciences management update, Camlin Fine Sciences latest news, Camlin Fine Sciences stock analysis, Camlin Fine Sciences revenue, Camlin Fine Sciences profit, Camlin Fine Sciences EBITDA, Camlin Fine Sciences net income, Camlin Fine Sciences dividend, Camlin Fine Sciences AGM, Camlin Fine Sciences future outlook, Camlin Fine Sciences company update, Camlin Fine Sciences business model, Camlin Fine Sciences specialty chemicals, Camlin Fine Sciences annual report, Camlin Fine Sciences shareholding pattern, Camlin Fine Sciences promoter holding, Camlin Fine Sciences investor call, Camlin Fine Sciences market cap, Camlin Fine Sciences stock performance, Camlin Fine Sciences technical analysis, Camlin Fine Sciences fundamental analysis, Camlin Fine Sciences brokerage report, Camlin Fine Sciences buy rating, Camlin Fine Sciences stock recommendation, Camlin Fine Sciences expansion plan, Camlin Fine Sciences vanillin plant, Camlin Fine Sciences product portfolio, Camlin Fine Sciences industry news, Camlin Fine Sciences competitor analysis, Camlin Fine Sciences R&D update, Camlin Fine Sciences merger news, Camlin Fine Sciences joint venture, Camlin Fine Sciences investor relations, Camlin Fine Sciences share target, Camlin Fine Sciences NSE, Camlin Fine Sciences BSE, Camlin Fine Sciences company profile, Camlin Fine Sciences growth potential,