Navin Fluorine International Q2FY22 performance is a bag of mixed feelings | Quarter 2 results

The quarterly performance of Navin Fluorine stood out in major segments except the CRAMs. For Q2FY22, the company reported a ~5% increase in standalone revenue on YoY basis, EBITDA margin grew by 90bps on QoQ basis, PAT margin marginally grew from 17.6% in Q1FY22 to 18.6% in Q2FY22.

The high value business grew by 1.5% YoY basis. Specialty chemical segment of the high value business led the performance on YoY basis, declaring a growth of 20% however, on QoQ basis, it had a negative growth of 8.3%. The specialty chemical segment charged up due to the rapid increase in exports that were up by 59% YoY basis. Due to inflation seen in raw material prices, the company reported a hike in prices which had little to no impact on margins and during this period, the company launched two new products. 
Despite a decent business performance in global markets, the domestic market business performance was fairly dull. It reported a marginal de-growth of 1.4% YoY basis. 

The CRAMs segment of the high value business declined by ~17% on YoY basis. The segment only bagged orders worth 40mn for the quarter, which is dramatically lower than the previous quarter which stood at 780mn. The growth was contributed by repeated orders from the customers. NFIL is driving hard to bring in new customers from the European and American markets. The product pipeline for the segment remains strong and growing. 

The Legacy business division of NFIL performed well on the basis of sale of inorganic fluorides but underperformed on the exports front of ref gases business. The overall revenue share of Legacy business (Ref. gases and inorganic fluorides) grew marginally from 36.5% in Q1FY22 to 37% Q2FY22, the domestic share revenue for the same grew by 7.4% QoQ basis and 29.1% YoY basis, and the exports revenue share decline by 4.3% QoQ basis and 21.1% YoY basis.