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Specialty Chemicals Q3 Earnings Preview - Underlying Trend Remains Strong: ICICI Securities

Specialty Chemicals Q3 Earnings Preview - Underlying Trend Remains Strong: ICICI Securities

<div class="paragraphs"><p>An employee uses a pipette to fill a glass flask in research laboratory. (Photographer Krisztian Bocsi/Bloomberg)</p></div>
An employee uses a pipette to fill a glass flask in research laboratory. (Photographer Krisztian Bocsi/Bloomberg)

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ICICI Securities Report

We estimate our chemical coverage universe revenue to grow at 42% YoY (7% QoQ) during Q3 FY22 on sharp rise in prices due to input cost inflation. However, gross profit is also expected to grow 29% YoY which indicates strong underlying trend led by robust growth for SRF Ltd. (42.5% YoY) on pricing benefit in refrigerant-gas; and Gujarat Fluorochemicals Ltd. (60.7%) on turnaround in fluoropolymers. Rossari Biotech Ltd. (up 39%) to benefit from acquisition.

Tatva Chintan Pharma Chem Ltd. and Clean Science and Technology Ltd.’s gross profit to grow steady at 25% YoY each, while Navin Fluorine International Ltd. (up 20.8%) growth is restricted on pending new capex commercialisation.

Galaxy Surfactants Ltd. would see gross profit decline YoY (down 8.8%) on continued challenge from unavailability of key raw material and logistic issues.

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ICICI Securities Q3 FY22 Specialty Chemical Preview.pdf

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