Fine Organic Q3 Results Review - Demand Is Not A Cause For Concern, But Capacity Is: Nirmal Bang

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. .Nirmal Bang Report.Fine Organic Industries Ltd.’s overall Q3 FY23 Ebitda came in ~18% below our estimate on account of lower-than-expected revenue growth and margin normalisation after three consecutive quarters of above-average Ebitda margin. Revenue came in lower than estimate on account of lower raw material prices and significant decline in freight costs. Also, production loss due to annual maintenance shutdown also impacted growth. Exports business continued its growth momentum and formed ~69% of overall sales. The management does not see demand challenges in USA and Europe markets for Fine Organics’ portfolio. Domestic business is also showing some promise after a relative underperformance in the past. Exports business has a higher share of premium products. Existing capacity is operating at optimum capacity, except the recently commissioned last phase of Patalganga unit, which is expected to fully ramp up in FY24. There would be capacity constraints from the end of FY24 as the Thailand joint venture’s current capacity is lower and the new project is getting delayed because of bureaucratic issues. We expect Ebitda margin normalisation in FY24 and FY25 from the current levels and hence key profit parameters will be at lower levels versus FY23E..Click on the attachment to read the full report:.Galaxy Surfactants Q3 Results Review - Ebitda Growth To Sustain In FY24: ICICI Securities.DISCLAIMERThis 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.

Fine Organic Q3 Results Review - Demand Is Not A Cause For Concern, But Capacity Is: Nirmal Bang

It has finalised land parcel in Gujarat, allotment letter is pending from state govt, hence it is yet to take possession of land.

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