Chemical Sector Q3 Earnings Preview: Agrochem, Pharma May Aid Topline Growth, Says ICICI Direct
An employee mixes a solution at the research laboratory (Photographer Dario Pignatelli/Bloomberg)

Chemical Sector Q3 Earnings Preview: Agrochem, Pharma May Aid Topline Growth, Says ICICI Direct

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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.

ICICI Direct Report

With rise in crude oil prices, we expect majority of the companies in our universe to witness an increase in prices of major raw materials.

This is expected to lead companies to pass on that increase to end users albeit partly since we expect part of the RMAT cost increase to be passed on during this quarter due to lag impact.

In terms of volume growth, due to restoration of demand across construction, auto, textile sectors along with sectors that were resistant during pandemic such as pharma, agrochemical, fast moving consumer goods, this is likely to support volume growth for most chemical companies in the last quarter.

Click on the attachment to read the full report:

ICICI Direct Chemicals Q3FY21 Result Preview.pdf

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