Alufluoride - Alufluoride

📊 BSE: 524634 🏢 Commodity Chemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment: high purity Aluminium Fluoride (AlF3). Segment-specific revenue growth was not explicitly disclosed, but the Operating Profit ratio declined from 16.2% in FY24 to 14% in FY25, a 13% YoY decrease.

Geographic Revenue Split

The company serves all Aluminium smelters in India (domestic) and a few smelters abroad (exports). Specific percentage splits by region were not disclosed in the documents.

Profitability Margins

Operating Profit ratio was 14% in FY25 compared to 16.2% in FY24. Net Profit ratio was 9.9% in FY25 compared to 11.5% in FY24, representing a 13% decline in both metrics.

EBITDA Margin

Operating Profit ratio (proxy for EBITDA) stood at 14% for FY25, down from 16.2% in FY24, indicating a 13% contraction in core operational profitability.

Capital Expenditure

The company expanded its AlF3 production facilities to 12,000 TPA in Phase 1, 16,000 TPA in Phase 2, and is currently enhancing capacity to 18,000 TPA. Specific INR Cr values for these expansions were not disclosed.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company mentioned taking debt for expansion as a risk factor.

⚙️ Operational Drivers

Raw Materials

Hydrofluosilicic Acid (FSA) and Alumina Hydrate are the primary raw materials. FSA is a byproduct of phosphatic fertilizer production.

Import Sources

Raw materials are sourced domestically from Andhra Pradesh and Odisha (Paradeep). The company is exploring setting up an Alumina Hydrate manufacturing facility to reduce import dependency.

Key Suppliers

Key suppliers include Coromandel International Limited (CIL) for 3,500 TPA of FSA, IFFCO Paradeep for 17,500 TPA (expected to reach 19,000 TPA), and Paradeep Phosphates Ltd. for up to 5,000 TPA.

Capacity Expansion

Current capacity is 16,000 TPA, with an ongoing expansion to 18,000 TPA to meet increased demand from aluminium smelters.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company noted that sourcing FSA from Odisha increases transport costs, impacting overall margins.

Manufacturing Efficiency

The company utilizes technology that converts fluorine effluents (waste) into wealth (AlF3), ensuring cost-effective production and pollution abatement.

Logistics & Distribution

Transport costs from Paradeep, Odisha, are cited as a significant risk factor, as the company must move large volumes of FSA to its plant in Visakhapatnam.

📈 Strategic Growth

Expected Growth Rate

12.5%

Growth Strategy

Growth will be achieved through capacity enhancement from 16,000 TPA to 18,000 TPA (a 12.5% volume increase) and exploring backward integration into Alumina Hydrate manufacturing. The company is also evaluating other domestic and overseas projects after withdrawing from a Jordan-based project.

Products & Services

High purity Aluminium Fluoride (AlF3), used as a flux to reduce the melting point of Alumina in aluminium production.

Brand Portfolio

Alufluoride Limited.

New Products/Services

Exploring the setup of an Alumina Hydrate manufacturing facility to secure raw material supply.

Market Expansion

Evaluating domestic and overseas projects to capitalize on the global increase in aluminium production capacities.

Market Share & Ranking

The company is the only producer of high purity Aluminium Fluoride in Andhra Pradesh.

Strategic Alliances

Long-term FSA supply contracts with Coromandel International Limited (CIL) and IFFCO, Paradeep.

🌍 External Factors

Industry Trends

Global aluminium production is increasing, leading to higher demand for AlF3. The industry is shifting toward 'Wealth from Waste' technologies to reduce carbon footprints.

Competitive Landscape

The company faces competition from imports, but its 'import substitution' positioning and local supply reliability provide a competitive edge.

Competitive Moat

Moat is based on specialized technology for converting waste FSA into high-purity AlF3, being the sole producer in its region, and having long-term raw material tie-ups.