Page 192 - CW E-Magazine (19-11-2024)

Special Report

rates by ~250 bps but remained com-
14000 16.00%
14.02% 14.36% fortable.
12000 14.00%
13.44% CARE Ratings’ View
10000 11.00% 12.00% “The Dye, Dye Intermediates, and
9.47% 10.00%
8000 Pigment industry is on path of reco-
8.49% 8.00% very after challenges faced in FY23
6000 and FY24. As envisaged, demand from
6.00%
4000 major end-use industries including tex-
4.00% tile improved in later part of FY24 and is
2000 2.00% expected to further recover in FY25.
0 0.00% This should result in moderate volume
FY20 FY21 FY22 FY23 FY24 FY25 driven growth in topline with improve-
ment in profi tability across industry
Total Operating Income PBILTD margins players as input costs stabilise. Finan-
cial risk profi le of major players is
Fig. 4: TOI (Rs. Crore) and PBILTD (%) of major players (60% of industry production)
Source: CARE Ratings and BSE fi lings; FY24 are Estimates and FY25 are Projections also likely to remain comfortable with
controlled leverage and stable interest
rates. This positions them well to man-
PBILTD Interest coverage Overall gearing
age capital expenditures or incremental
20 0.4 working capital requirements. Modi-
17.44
18 0.35 fi ed Credit Ratio (MCR) of CARE Rat-
15.53
16 13.97 0.36 ings’ rated portfolio, though improved
14 0.33 0.31 0.3 marginally from FY23, remained be-
low unity in FY24. While the credit
12 0.26 0.28 0.25 risk profi le of majority players with a
10 0.24 0.2 diversifi ed product portfolio remained
8 6.36 6.33 6.62 0.15 resilient, that of a few mid-sized players
6 having a concentrated product basket
0.1 and recently added capacities were im-
4 pacted; leading to rating downgrades.
2 0.05 With further industry-wide recovery
0 0 expected in FY25, performance of
FY20 F Y21 FY22 FY23 FY24 F Y25 majority players is poised to improve,

Fig. 5: Debt metrics of major players which shall also lead to a gradual im-
Source: CARE Ratings and Stock Exchange fi lings provement in MCR,” said Anuja Parikh,
Note: Analysis of sample set of major players, which constitutes over 60% of total production volume. Associate Director at CARE Ratings.

Mrs. Usha S. - usha@hpicindia.com

192 Chemical Weekly November 19, 2024

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