BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
Atul Ltd. reported lower-than-estimated operating performance in Q4 FY22, with a sharp drop in Ebitda to Rs 2 billion (down 19% YoY and 18% QoQ), versus our estimate of Rs 2.7 billion.
We attribute the variance to 780 basis points YoY and 320 bps QoQ compression in Ebitda margin to 15%, caused by 530 bps YoY drop in gross margin to 47.5% and higher staff and other expenses. Prices of all key raw materials increased 20-200% YoY.
Global coal shortage and Russia-Ukraine conflict accentuated the pressure on fuel prices, which surged 200% YoY.
Weak availability of shipping lines led to the disruption in the global supply chain, which caused freight costs to surge ~300% YoY.
We expect Atul's operating profit margin to improve 300-350 bps over FY22-24E, with 13% compound annual growth rate in revenue during this period, as margins are expected to recover in the coming quarters.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
