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Vinati Organics' MD shares the secret to the stock's resilience in these stormy times

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Vinati Organics' MD shares the secret to the stock's resilience in these stormy times

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the depreciation in the rupee has been having a net positive impact on the company, Managing director Vinati Saraf Mutreja told CNBC-TV18.

Chemicals company Vinati Organics gets about 70 percent of its revenues from exports. And the depreciation in the rupee has been having a net positive impact on the company, Managing director Vinati Saraf Mutreja told CNBC-TV18.
“Us being an exporter in general, rupee depreciation is good since most of our pricing is dollar-based. But most of our raw materials, whether imported or not, are also dollar-linked,” she said.
She said the company had hedged some part of the dollar transactions.
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In terms of the rising crude price impact, she said, “We have been able to pass on higher crude prices to customers."
The company's stock, which gained on Tuesday after two consecutive days of fall, outperformed the sector by 0.4 percent. On Tuesday, the stock touched an intraday high of Rs 2,027.65 but was trading at Rs 1,997 at around 2.50 pm on BSE.
The MD expects the company to report a similar margin in FY23 as in FY22 despite the stormy times. "Margin will be around 28-30 percent in FY23," Mutreja said.
She said the company was seeing a lot of positive demand and traction in the product that contributes to about 50 percent of the firm's revenue mix, which is acrylamide tertiary butyl sulfonic acid (ATBS).
She said the company was running at full capacity and going ahead with expanding the capacity for ATBS from 40,000 TPA to 60,000 TPA. "ATBS expansion is a Rs 300 crore capex, and we will fund it via internal accruals," she said.
On the merger with Veeral Additives, she said the approval from the National Company Law Tribunal (NCLT) for the merger was getting delayed and that the company expects it to come in the next 3-4 months.
For the full interview, watch the accompanying video
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