Navin Fluorine International Limited (NFIL) has made a significant move towards sustainability and cost efficiency by entering into agreements to acquire a 26% stake in Pro-Zeal Green Power Eleven Private Limited (SPV) for up to ₹6.60 crores. This strategic investment aligns with the company's commitment to renewable energy and operational cost optimization.

Key Highlights of the Investment

• Stake Acquisition: NFIL will invest up to ₹6.60 crores through equity shares and compulsory convertible debentures in the SPV.
• Power Supply Agreement: The SPV will provide 6.60 MW of captive hybrid wind and solar power to NFIL's Surat unit under a 15-year agreement.
• Ownership Structure: NFIL will hold a 26% stake, while the remaining 74% will be held by Prozeal Green Power Private Limited.
• Expected Completion: The acquisition is set to be completed within 11 months.

Strategic Implications

The investment in Pro-Zeal Green Power Eleven Private Limited is expected to yield significant benefits for Navin Fluorine:

1. Cost Savings: The arrangement aims to achieve substantial savings on power costs for the Surat unit.
2. Sustainability Goals: This move aligns with NFIL's sustainability objectives, showcasing its commitment to renewable energy sources.
3. Long-term Energy Security: The 15-year power supply agreement ensures a stable and predictable energy supply for the Surat facility.

Financial Performance

Navin Fluorine International Limited has reported strong financial results:

Business Segment Updates

High-Performance Products (HPP)

• R32 project successfully commercialized and running at optimal capacity
• AHF project progressing steadily

Specialty Chemicals

• Set to deliver supplies for 3 new molecules
• Fluoro specialty project in Dahej expected to contribute meaningfully

Contract Development and Manufacturing Organization (CDMO)

• Strong order book momentum continues
• cGMP4 facility Phase 1 expansion on track

Future Outlook

Navin Fluorine International Limited is well-positioned for growth across its business segments. The company's strategic investments in green energy, expansion of specialty chemicals portfolio, and progress in the CDMO division indicate a positive outlook.

The management remains focused on enhancing value addition, targeting high-margin opportunities, and diversifying into emerging high-growth sectors. With a strong balance sheet following the recent ₹750.00 crores QIP, NFIL is poised to capitalize on new opportunities and drive sustainable growth.

As Navin Fluorine continues to expand its capabilities in advanced materials and electronic chemicals, the company is set to strengthen its position in niche, high-value markets while maintaining its commitment to sustainability and operational excellence.

Navin Fluorine International Limited , a leading player in the fluorochemicals industry, has reported strong financial results for the first quarter. The company's performance demonstrates significant growth across all its business verticals, showcasing its resilience and strategic positioning in the market.

Financial Highlights

Navin Fluorine reported a consolidated revenue of Rs. 725.40 crores for Q1, marking a substantial 39% year-on-year increase. The company's operating EBITDA reached Rs. 206.80 crores, with an impressive margin of 28.5%, up 935 basis points compared to the same period last year. Operating profit before tax saw a remarkable growth of 143%, reaching Rs. 141.20 crores.

Segment-wise Performance

The company's growth was driven by strong performances across all three of its business verticals:

1. High Performance Products (HPP): Revenues increased by 45% to Rs. 407.00 crores
2. Specialty Chemicals: Grew by 35% to Rs. 219.00 crores
3. CDMO (Contract Development and Manufacturing Organization): Rose by 23% to Rs. 99.00 crores

Operational Highlights

• The company's R32 plant, commercialized in March, has achieved optimum utilization.
• The HPP segment benefited from higher realizations and volumes, supported by firm pricing for refrigerant gases.
• Navin Fluorine's Rs. 450.00 crore AHF (Anhydrous Hydrogen Fluoride) capacity expansion project at Dahej is on track and expected to be commissioned by the end of the second quarter.

Management Commentary

Nitin G. Kulkarni, Managing Director of Navin Fluorine International Limited, stated, "Our strong Q1 performance reflects the robustness of our business model and the successful execution of our growth strategies. The significant growth across all our business verticals underscores the strength of our diversified portfolio and our ability to capitalize on market opportunities."

Future Outlook

With the ongoing capacity expansion and strong order book, Navin Fluorine is well-positioned for sustained growth. The company's focus on high-value segments like Specialty Chemicals and CDMO, coupled with its investments in capacity expansion, is expected to drive future performance.

Investor Presentation Highlights

As per the investor presentation filed with the stock exchanges, Navin Fluorine provided additional insights into its performance:

• The Specialty Chemicals segment saw optimal capacity utilization at Dahej & Surat facilities, with a strong order book.
• The CDMO segment reported strong revenue visibility backed by a robust orderbook.
• The company's cGMP4 capex project of Rs. 288.00 crore is progressing well, with Phase 1 capex of Rs. 160.00 crore on track to commission by the end of Q3.

Navin Fluorine's strong Q1 results demonstrate its ability to navigate market challenges and capitalize on growth opportunities in the fluorochemicals industry. The company's strategic investments and focus on high-value segments position it well for continued success in the coming quarters.