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Midcaps Q2 Earnings Preview - Expect Single-Digit Revenue Growth, Muted Operating Profit Margin: Systematix

Midcaps Q2 Earnings Preview - Expect Single-Digit Revenue Growth, Muted Operating Profit Margin: Systematix

<div class="paragraphs"><p>Stock figures on a screen at a stock exchange. (Photographer: Kiyoshi Ota/Bloomberg)</p></div>
Stock figures on a screen at a stock exchange. (Photographer: Kiyoshi Ota/Bloomberg)

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.

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.

Click on the attachment to read the full report:

Systematix Midcaps - Q2FY22 Result Preview.pdf

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