GUJARAT FLUOROCHEMICALS

Till couple of years ago, the company was recognized as India’s largest producer of Refrigerant Hydrochlorofluoro carbons where around 50% of its production was for captive consumption for making PTFE and the rest is sold in the open market. But today, its entire business profile has changed. Today, it has four verticals, chemicals which are refrigerant gases and rest; then there is Wind Turbine Business which is manufacture and selling of wind turbine generators and installing and maintaining the same. Third is Wind Power Generation business which is generation and sale of power. Fourth vertical is theatrical exhibitions, which is operating and managing multiplex cinema theaters. From gases, today, its biggest contributor is Wind Turbine Business, with major portion of its earnings coming from making wind turbine machines. On the back of this, the company ended Q3FY15 with a whopping 91% (YoY) jump in consolidated net sales at Rs.1607 crore and net profit at Rs.107 crore, up almost 4 times over previous Q3 net profit of Rs.28 crore. EBITDA rose 111% at Rs.300 crore. The vertical of Wind Turbine Business is its mulch cow – contributing 59% to total income earned and 64% of total EBIT. This business, under the banner of Inox Wind, as of December 31, 2014, sold an aggregate of 521 WTGs with a total capacity of 1,042 MW and its order book stood at an aggregate capacity of 1,258 MW.

Its other big earner is the Theatrical Exhibition, which is post takeover of Inox and now Satyam Cineplexes. Currently, it has 365 screens with 97,039 seats spread over 17 states in India. The average ticket price has risen from Rs.159 in Q3FY14 and Rs.162 in Q2FY15 to Rs.175 in current Q3.  The company’s net profit of Rs.257 crore for 9MFY15 has already surpassed Fy14 net profit of Rs.186 crore, which means, FY15 will end on a bumper note! From next fiscal onwards though, it will lose the advtanage of the low base effect and no longer would we see such huge YoY jump in earnings.