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

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

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

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.