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Camlin Fine Sciences Q2 Review - Below Estimate Performance: Nirmal Bang

Camlin Fine Sciences Q2 Review - Below Estimate Performance: Nirmal Bang

<div class="paragraphs"><p>A technician tests chemicals in a laboratory. (Photographer:Ralph Orlowski/Bloomberg News)</p></div>
A technician tests chemicals in a laboratory. (Photographer:Ralph Orlowski/Bloomberg News)

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.

Nirmal Bang Report

Camlin Fine Sciences Ltd.’s Q2 FY22 consolidated Ebitda came 56% below our estimate mainly on account of disruption in supply chain and logistics and production impact in products like TBHQ, BHA, MEHQ etc. due to technical issues faced while scaling up the Diphenol plant at Dahej.

Ebitda adjusted for one-offs related to production loss and supply chain disruption (Rs 125 million) and non-recurring expense (Rs 35 million) was down ~15% QoQ.

Camlin Fine Sciences expects H2 FY22 to be better given that the production-related challenges are behind and is confident of pass-through of raw material inflation impact (in HQ chain) with a one quarter lag.

Also, almost 70-80% of the clients have agreed to shift to freight on board basis in the coming quarters, which will reduce the cost impact in case of freight.

Click on the attachment to read the full report:

Nirmal Bang Camlin Fine Sciences -Q2FY22 Result Update.pdf

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