Sudarshan Chemical Q3 Results Review - Headwinds Persist, Demand Recovery To Be Slow: ICICI Direct

ICICI Direct Report

Sudarshan Chemical Industries Ltd.’s numbers came in below our estimates due to lower-than-expected growth in pigments segment. 

Reported revenue de-growth of 12.3% YoY to Rs 528 crore, led by lower offtake from pigments (down 13.7%) even as other segment grew 7%.

Gross margins increased 24 basis points YoY to ~40.8% while Ebitda margins contracted 439 bps YoY to 7.9% due to escalation in other expenses (up 5.8% YoY).

Sudarshan Chemical's Ebitda declined 43.6% YoY to Rs 41.6 crore. The decline was led by elevated level of energy cost and foreign exchange loss of Rs 8.6 crore. Profit after tax was down 98.4% YoY to Rs 60 lakh.

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