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Atul Q4 Review - Poor Show; Outlook Remains Cautious: Dolat Capital

Atul Q4 Review - Poor Show; Outlook Remains Cautious: Dolat Capital

An employee mixes a solution at a research laboratory. (Photographer: Dario Pignatelli/Bloomberg)
An employee mixes a solution at a research laboratory. (Photographer: Dario Pignatelli/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Atul Ltd.’s Q4 FY22 numbers came in above our estimates. Revenue was up by 22.8% YoY to Rs 13.7 billion (our estimate: Rs 13.2 billion) which we believe was largely driving by higher realisations.

Higher crude oil prices (crude oil prices up 64% YoY in Q4 FY22) dented gross margins by 533 basis points YoY to 47.5%.

Higher power and fuel expenses (up 46.2% YoY) and higher other expense (up 33.9% YoY) resulted in Ebitda de-growth of 19.3% YoY to Rs 2.1 billion.

Atul's profit after tax saw a de-growth of 22.2% YoY to Rs 1.4 billion (our estimate: Rs 1.1 billion) impacted by a higher depreciation charge (up 20.4% YoY).

Click on the attachment to read the full report:

Dolat Capital Atul Q4FY22 Result Update.pdf

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