Chemfab Alkalis
Chemfab Alkalis posted a set of very poor numbers for Q4Fy14. During the quarter, it carried out plant maintenance and some modernization work at its plant and that led to some shutdown, which in turn affected its turnover. It came in 20% (QoQ) lower at Rs.24 crore. Power and fuel charges remain high and net profit came in at Rs.1.5 crore, down 72% sequentially. It ended the year FY14, with a 3% lower net revenue and 30% drop in net profit at Rs.16 crore. Power and fuel charges remain high at Rs.53 crore, which was 58% of its total operating expenses and almost 50% of its revenue earned.
No new caustic soda plants are coming up and that is the main reason which drives the price, though it has been weak for some time now. Worldwide the membrane cell technology represents about 20% of production and nearly all new investment are in chloralkali production. Its business is shrouded in complete unpredictability and that explains the low discounting. As at 31st March 2014, on a tiny equity of Rs.4.59 crore, its reserves stand pretty hefty at Rs.116 crore.