Chemical Sector Q3 Results Preview - Revival Likely But Timing Is Uncertain: Nirmal Bang

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Our agro-chemical coverage stocks are likely to report YoY decline in Q3 FY24 results - barring custom synthesis manufacturing major PI Industries Ltd. and its small cap peer Anupam Rasayan India Ltd. and Sumitomo Chemical India Ltd. (up a tad). Revenue/Ebitda is likely to be decline (except PI Industries and Anupam Rasayan) due to weak topline/margins amid persistent pressure on prices, unabated Chinese dumping at below cost and de-stocking. Weak agronomic conditions – low soil moisture/water levels (weak SW monsoon combined with excess rains in Q3 FY24 has resulted in a subdued trend in Rabi cropped area - down 2.6% YoY). There are however some pockets in the South which are reported to be positive for states like Telangana and Andhra Pradesh. Also, Northern states like Punjab are said to have healthy soil moisture and water levels. UPL Ltd. will see 407 basis points YoY decline in Q3 FY24 Ebitda margin due to muted India sales (weak crop protection chemical sales due to hit on Rabi crops) and a delayed recovery in Brazil - still saddled with high channel inventory. Consolidated profit after tax is likely to plunge from Rs 11.07 billion in Q3 FY23 to a loss of Rs 2.02 billion in Q3 FY24 versus street’s profit estimate of Rs 10.1 billion. Anupam Rasayan is set to lead our coverage universe with 28.6% YoY increase in profit after tax. PI Industries will follow with 7.3% YoY growth in profit after tax followed by Sumitomo Chemicals with a miniscule YoY growth. We also expect Tata Chemicals Ltd. and Coromandel International Ltd. to report YoY decline in profit after tax at 48.9%/47.6%. Watch out for management comments in earnings calls - on destocking, pricing power and any signs of revival in procurement by trade for future consumption. Also keep an eye on movement in inventory and receivables and any inventory-related adjustments through profit and loss..Click on the attachment to read the full report:.Automobiles Q3 Preview - Gross Margin To Contract Sequentially As Raw Material Prices Inch Up: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Chemical Sector Q3 Results Preview - Revival Likely But Timing Is Uncertain: Nirmal Bang

Anupam Rasayan is set to lead our coverage universe with 28.6% YoY increase in profit after tax.

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