Vinati Organics Q2 Results Review - Strong Performance: Geojit
Revenue growth momentum to continue, given strong demand for its key products, capacity expansion, contribution from new products.
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.
Geojit Research Report
Vinati Organics Ltd.'s Q2 FY23 revenue grew by 51% YoY, led by a strong contribution from the 2-acrylamido 2-methylapropane sulphonic acid business, and healthy demand across products. ATBS witnessed strong growth led by higher realisation and healthy volume.
The Isobutyl benzene segment continues to witness a revival led, by traction from its key customers and we expect this growth momentum to continue given the improved outlook for Ibuprofen. Overall demand across products has seen healthy growth.
Ebitda grew by 47% YoY, while margins fell by 80 basis points YoY to 25.8% due to increase in power and fuel costs. Despite this, profit after tax grew by 36% YoY.
Vinati Organics' revenue growth momentum is expected to continue, given strong demand for its key products, capacity expansion and higher contribution from new products.
Synergies owing to backward and forward integration, strong cash flows, healthy balance sheet and return on capital employed and return on equity of above 24% (five year average), instills confidence.
Click on the attachment to read the full report:
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.