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ICICI Securities Report
Though chemical plants started operations in April 2020, plants were not running at optimal utilisation levels due to issues related to manpower availability, shortage of raw materials and logistics.
This impacted volume offtake though it benefited a few products on pricing, which should moderate with resumption of compete production capacity.
Biaxially-oriented polyethylene terephthalate is one such product in our view, where spreads have improved by 19.7% YoY and export volumes rose 45% YoY in the first two months of Q1 FY21.
This also explains the massive Ebit margin expansion for SRF Ltd. in packaging films in Q1 FY21.
R-22 prices have not shown the anticipated rise on second phase-down, which should improve with normalisation of demand in our view.
Galaxy Surfactants Ltd. has seen lauryl alcohol prices increase QoQ, which partially helped margins.
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