Fine Organic Q1 Review - Demand Outlook Strong; Margins To Remain Subdued: Motilal Oswal
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Motilal Oswal Report
Fine Organic Industries Ltd. reported in-line revenues, while the gross margin stood at 31%, the lowest in the last 16 quarters.
A broad trend was seen across companies due to a surge in freight costs, coupled with a rise in raw material costs.
Ebitda at Rs 499 million was a marginal beat of 7% on our numbers, with marginal decline in Ebitdam sequentially from 14.3% to 13.9%.
Lower-than-expected depreciation resulted in a more pronounced beat of 16% on profit before tax and 21% on profit after tax.
Higher disposable incomes, coupled with the rising trend of eating healthy, are expected to drive the global food additives market, with this trend catching up in India too.
With its strong research and development capabilities, Fine Organic stands to benefit from these trends.
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