Fine Organic Q4 Review - Margin Miss; Structural Story Intact: Nirmal Bang

A R&D facility of Fine Organics Industries Ltd. (Source: Company website).

Fine Organic Q4 Review - Margin Miss; Structural Story Intact: Nirmal Bang

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Nirmal Bang Report

Fine Organic Industries Ltd.’s Q4 FY21 operating performance came in below overall expectations mainly on account of raw material inflation led margin pressure.

While the revenue growth of ~31% YoY for the quarter was ahead of our estimate, we believe that a large part of this growth would be pricing led.

Despite price hikes taken by the company, sub-par margin performance during the quarter was because of inability to get long-term contracts amid the extremely volatile raw material pricing environment.

While these factors might affect the company’s operating performance in the upcoming quarter, nothing has changed on the underlying demand side.

Click on the attachment to read the full report:

Nirmal Bang Fine Organic Industries -Q4FY21 Result Update-30 May 2021.pdf


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