Vinati Organics reported a steady set of Q4 numbers with higher employee costs impacting margins but other income doubling on year-on-year basis.
Vinati Saraf Mutreja, executive director, Vinati Organicsc said, "For financial year 2019, we expect 25-30 percent growth in revenues on back of increase in ATBS demand."
To service this demand, the company will debottleneck the capacity from 26000 to 30000, said Mutreja.
The 2-Acrylamido 2-methylpropanesulfonic Acid (ATBS) market share is around 60 percent, for Iso Butyl Benzene (IBB) it is around 60-65 percent globally but Isobutylene (IB) is more domestic market and the share would be around 80 percent, she said.
The Butyl Phenol plants should be ready by April 2019 and should aid revenues of Rs 350 crore.
With regards to debt, she said it is nil and cash on hand is over Rs 100 crores and they generate above Rs 250 crore in cash every year. The combined investments for the next three years including butyl phenol and others would be Rs 200-250 crore. So, capex expansions will be done through internal accruals.
The net profit for financial year 2019 is expected to grow by 35-40 percent.