India Glycols Reports Strong Q2 Results with 33% EBITDA Growth and Plans INR 467 Crore Preferential Issue

India Glycols Limited (IGL) has reported robust financial results for the second quarter, with significant growth across key segments and plans for a substantial preferential share allotment to strengthen its balance sheet.

Financial Highlights

IGL delivered impressive quarterly performance with net revenue increasing by 14% to INR 1,092.00 crores, up from INR 961.00 crores in the same quarter last year. The company's EBITDA surged by 33% to INR 160.00 crores, compared to INR 120.00 crores in Q2 of the previous year, demonstrating strong operational efficiency.

Key financial metrics for Q2:

Metric	Q2 Current Year	Q2 Previous Year	YoY Growth
Net Revenue	INR 1,092.00 cr	INR 961.00 cr	14%
EBITDA	INR 160.00 cr	INR 120.00 cr	33%
EBITDA Margin	14.6%	12.4%	220 bps
PAT	INR 65.00 cr	INR 50.00 cr	31%
PAT Margin	5.9%	5.1%	80 bps

Segment Performance

Biofuels

The Biofuels segment emerged as a key growth driver, with sales increasing by an impressive 63% to INR 423.00 crores for the quarter. This growth was supported by the government's ethanol blending program and IGL's strategic capacity additions.

Potable Spirits

The Potable Spirits division also showed strong performance, with sales up by 24.5% year-on-year to INR 338.00 crores. The company reported success in both its Country Liquor and Indian Made Foreign Liquor (IMFL) segments.

Chemicals

While the Chemicals segment faced some challenges, with sales at INR 288.00 crores for the quarter, the company maintained a positive outlook on its specialty chemicals and performance chemicals businesses.

Strategic Developments

Preferential Share Allotment

IGL's Board has approved a preferential allotment of INR 467.00 crores at INR 915.00 per share to promoters and related parties. The proceeds are earmarked for debt reduction from current levels of INR 1,400.00 crores, which is expected to significantly improve the company's financial position.

Amrut Partnership

The company's partnership with Amrut Distilleries for premium whisky brands is showing promising results. IGL has introduced 8-10 different Amrut brands in various markets, focusing on premium segments with higher margins.

Market Expansion

IGL is expanding its IMFL market presence, particularly in states like Kerala, and is making inroads into the Paramilitary and Canteen Services Department segments for potential growth opportunities.

Outlook

Despite facing challenges in some segments, India Glycols remains optimistic about its future prospects. The company's focus on premiumization in the spirits business, expansion of its biofuels capacity, and development of specialty chemicals are expected to drive growth in the coming quarters.

CEO Rupark Sarswat commented on the results, stating, "We have seen strong growth in net revenue and a healthy upside in EBITDA margin. Our strategic initiatives in biofuels and potable spirits have contributed significantly to this performance, and we continue to explore new opportunities in green chemistries and advanced biofuels."

As India Glycols navigates the evolving market landscape, its diversified portfolio and strategic investments position the company for sustained growth and improved profitability in the future.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.51%	+8.37%	+14.18%	+27.66%	+102.98%	+660.29%

India Glycols Limited (IGL) has made significant progress in its corporate restructuring plans, securing crucial approvals from major stock exchanges. The company announced that it has received the green light from the National Stock Exchange (NSE) and a no-objection from the Bombay Stock Exchange (BSE) for its proposed corporate arrangement involving Ennature Biopharma and IGL Spirits.

Key Developments

Exchange Approvals: India Glycols has successfully obtained approval from NSE and no-objection from BSE for its corporate arrangement.
Entities Involved: The restructuring plan involves India Glycols Limited, Ennature Biopharma, and IGL Spirits.
Current Status: The arrangement is pending legal approvals and completion of shareholder agreements.

Next Steps

While this development marks a crucial milestone for India Glycols, it's important to note that the corporate arrangement is not yet finalized. The company still needs to clear two significant hurdles:

Legal Approvals: The arrangement requires clearance from relevant legal authorities.
Shareholder Agreement: Completion of necessary shareholder agreements is pending.

Investors and stakeholders should be aware that the proposed corporate arrangement can only proceed once these remaining steps are completed.

Implications

This corporate restructuring, once finalized, could potentially impact the operational structure and business focus of India Glycols, Ennature Biopharma, and IGL Spirits. However, the specific details and potential outcomes of this arrangement are not disclosed in the current announcement.

Shareholders and potential investors are advised to keep a close watch on further announcements from India Glycols regarding the progress of this corporate arrangement, particularly concerning the pending legal approvals and shareholder agreements.