Q2 results review: Galaxy Surfactants, Vinati Organics, other Specialty chemical firms may have a better second half
Also Read- Tata Technologies IPO: GMP remains steady. Price, lot size, other details of upcoming IPO Q2 was a disappointing quarter all across the chemicals segment said Rohit Nagraj at Centrum Institutional Research. Severely impacted by weakness in exports markets coupled with pricing pressure, chemical companies reported their weakest performance in the past several quarters, said Nagraj.
China dumping slowed down, however inventory destocking continued in global market impacting the exports performance. Specialty Chemicals are weathering the destocking storm as per analysts at Motilal Oswal Financial Services. Alkyl Amines Chemicals Limited, Clean Science and Technology Limited, Deepak Nitrite, Navin Fluorine International Ltd, missed their revenue estimates, while Atul Ltd beat their estimates.
On net profit front, Deepak Nitrite, NOCIL Ltd posted a beat, while the rest of their coverage companies missed estimates. The concerns on remain as we move ahead . The outlook for FY24 is anticipated to remain subdued due to ongoing destocking at the customer’s end, compounded by aggressive pricing-driven dumping from China.
Additionally, capacity expansion has experienced delays due to the aforementioned factors said analysts at Motilal Oswal Financial Services Ltd. However the positive is that management commentaries have remained encouraging. As per the Gist of Management comments prepared by analysts at Centrum Institutional equities on operating environment- High cost inventories are largely exhausted during the fist half and now the low cost raw material shall start reflecting in financial performance.
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