Vinyl Sulhone and H-Acid are the new party drugs. Well, in a manner of speaking!
These are actually dye intermediates, which are enjoying a bull run in prices (probably temporary). Prices have risen >2x normal levels, margins have expanded dramatically, it seems due to global capacity shortage. The companies manufacturing these are having a whale of time. We know of 4 manufacturers: Bodal Chem, Bhageria Dye Chem, Kiri Industries and Akshar Chem.
Among the lot, Bodal declared results last week and Bhageria came out with results today. And what blow out results, for both!
This is what Bodal declared:
| (Rs mn) | AMJ-14 | AMJ-13 | FY14 |
| Sales | 3853 | 1765 | 9595 |
| EBITDA | 920 | 166 | 1889 |
| PAT | 520 | 19 | 307 |
And Bhageria’s results are equally good:
| (Rs mn) | AMJ-14 | AMJ-13 | FY14 |
| Sales | 1816 | 498 | 3674 |
| EBITDA | 257 | 27 | 248 |
| PAT | 165 | 16 | 154 |
Kiri and Akshar Chem are yet to declare results. All the 3 scrips have risen dramatically, by 10-15x in the last 2-3 quarters.
What we don’t know is how long the party will last. Polyester film makers had dramatic run in FY12, where all companies posted unheard of profits, but now they are back to 2-3% net margin. Hope the crash isnt too bad here.
Fairval 