Specialty Chemical Q2 Earnings Preview - Short Term Margin Pressure; Strong Revenue Growth Expected: KRChoksey
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KRChoksey Research Report
Indian specialty chemical industry would witness strong YoY demand growth in Q2 FY22 due to lower base during the Covid-19 period last year showing uptrend in the revenue.
Improved demand will be supported by downstream products by various specialty chemical companies which will show stronger sales.
Recovery in the global economies is expected to generate robust revenue growth as well.
Q2 FY22 will show dent in the margins due to rising input cost and unavailability of containers, however increasing brent prices ((average of $73/barrel of oil (up 6% QoQ) in Q2 FY22)) should provide cushion to it.
Raw material cost push will lead to improved pricing scenario during the period with overall sales remaining strong and upholding the earnings momentum.
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