DCW - DCW Ltd. Share Price

In the Q4 FY25 earnings conference call, management at DCW Limited provided an outlook emphasizing resilience despite challenges in the global chemical industry. Mr. Saatvik Jain, the President, stated that the company faced notable pressures from low-cost imports, especially from China, resulting in pricing challenges particularly in basic chemicals like PVC and Soda Ash. Nonetheless, Jain highlighted a 12% EBITDA growth year-over-year, underpinned by strong performance in the Specialty Chemicals segment.

Looking ahead, management forecasts significant tailwinds in FY26, especially in the second half as they expect to benefit from new capacity additions and robust demand growth. A key development includes the 30,000 tons C-PVC expansion at Sahupuram, with the first 20,000 tons expected to be operational ahead of schedule before September 2025.

Financial strength is a key focus, with a successful reduction of net debt-to-EBITDA below 1x for the first time, reflecting a commitment to deleveraging and growing profitability. For FY25, the profit after tax doubled to INR 30 crores from INR 15 crores the previous fiscal year.

Management also addressed forward-looking goals, including enhanced operational efficiencies, continued focus on value-added specialty chemicals, and a clear trajectory towards growing their earnings base. They expect EBITDA for FY27 to reach approximately INR 400 crores, fueled by increased capacity and market normalization. Overall, the management exudes confidence in navigating through current headwinds to capitalize on growth in specialty segments and domestic demand.

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