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Navin Fluorine Q1 Review - Operating Profit Margin Contracts Due To One-Time Costs: Systematix

Navin Fluorine Q1 Review - Operating Profit Margin Contracts Due To One-Time Costs: Systematix

<div class="paragraphs"><p>An employee prepares a solution in a flask during a test. (Photographer: Brent Lewin/Bloomberg)</p></div>
An employee prepares a solution in a flask during a test. (Photographer: Brent Lewin/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

Navin Fluorine International Ltd.’s Q1 FY22 performance was slightly below our estimates with revenue/Ebitda/adjusted profit after tax growth of 52%/45%/down 1% y-o-y and down 3%/down 8%/down 5% q-o-q.

The sequential sales decline was due to lower export volume offtake in inorganic fluorides and quarterly lumpiness in the contract research and manufacturing services business.

Refrigerants and specialty fluorochemicals benefitted from improved refrigerant (R22) prices and domestic demand.

Navin Fluorine's operating profit margin contracted 122 basis points q-o-q and y-o-y to 23.8% due to an increase in the cost of one key raw material for the specialty chemical division and additional employee costs and other expenses towards strengthening its product development team, retention bonus, maintenance cost and one-time consultancy fees.

Click on the attachment to read the full report:

Systematix Navin Fluorine Q1FY22 Result Update.pdf

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