STYRENIX - Styrenix Performance Materials Limited Share Price

In the earnings call held on May 25, 2025, Styrenix Performance Materials Limited management provided a positive outlook for the upcoming fiscal year. The company expects continued growth, driven by robust demand for its products.

For fiscal year 2026, management anticipates that combined sales volume will exceed 200,000 tons, with potential growth of approximately 10% over the previous year's output of 185,000 tons. This projection is supported by ongoing debottlenecking activities aimed at enhancing production capacity.

Key points mentioned include:

1. Installed capacity is currently around 200,000 tons for FY25, with expected increments from ongoing improvements, which may increase capacity to approximately 205,000-210,000 tons.
2. The company has experienced significant growth with a revenue increase of 23.5% year-over-year, from Rs. 2,222 crores in FY24 to Rs. 2,744 crores in FY25.
3. Sales volume rose from 164 KT to 186 KT year-over-year, translating into a 12.8% increase.
4. Styrenix expects to commission an additional 50,000 tons of production capacity by the end of calendar year 2026, anticipated to contribute to revenues in FY27.
5. The Thailand acquisition and management transition begun in January 2025 has shown initial positive results, with nearly 17,000-18,000 tons in sales reported during the first quarter post-acquisition.
6. Overall consolidated revenue reached Rs. 2,982 crores for FY25, with an EBITDA of Rs. 362 crores at 12.2% margin.

Management remains optimistic about leveraging increased capacities, optimized operations, and favorable market conditions to sustain growth in revenues and maintain healthy profit margins throughout fiscal year 2026.

Here are the key questions and answers from the Q&A section of the earnings call transcript:

1. Question: "In our Chairman's comments, we mentioned about starting 50,000 ton production earlier, does it mean FY '26 or Calendar Year '26?" Answer: "It refers to Calendar Year '26. The capacity will reflect in FY '27, with potential benefits in late FY '26."

2. Question: "Understood. So, if the demand is there, can we grow our volumes by 10% over FY '25 volumes?" Answer: "We believe so. With our projected installed capacity and additional enhancements, we can achieve a 10% growth over FY '25."

3. Question: "Could you elaborate on the Thailand business post-acquisition?" Answer: "In the last quarter, we achieved sales of approximately 17,000 tons. We anticipate increasing capacity utilization through enhanced sales and product validation efforts."

4. Question: "Can you provide insights on the outlook for spreads in Q1 '26?" Answer: "While I can't give forward-looking statements, we aim to meet our growth targets for this year, contingent on capacity availability."

5. Question: "What are the main reasons for the rise in other expenses this quarter?" Answer: "The increase originated from extraordinary one-time costs, particularly related to a name change and acquisitions amounting to about Rs. 15 crores."

6. Question: "Can you speak on customer preferences between conventional ABS and mass ABS?" Answer: "Currently, there's no mass ABS in India. Conventional ABS offers more customization and versatility which may appeal more to customers."

7. Question: "Regarding working capital, can we optimize it in the coming years?" Answer: "We recognize higher inventories and are focusing on efficiency improvements, though our working capital cycle is primarily driven by inventory management."

8. Question: "Given the current context, what's your assessment of the ABS and polystyrene pricing outlook?" Answer: "Pricing for ABS and PS remains stable, in line with previous years. We don't expect major shifts unless market dynamics change significantly."

Please let me know if you need further information or additional questions summarized!