Midcaps Q2 Earnings Preview - Expect Single-Digit Revenue Growth, Muted Operating Profit Margin: Systematix
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Systematix Research Report
We expect mid-single-digit revenue growth on a sequential basis for our chemical’s coverage universe. The growth will be value-led because of higher raw material costs.
Volume growth is likely to be muted due to domestic slowdown and lower export revenue (~50% of total sales) owing to logistics-related challenges.
Ebitda margins are likely to remain flat QoQ as spreads of key products were a mixed bag.
Our long-term outlook for the sector remains positive (integrated players) due to improvement in the overall eco-system of the industry, rising internal consumption for chemical intermediates and volume shift from China to India.
We expect volume growth to recover in the coming quarters.
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