The speciality chemical sector in India experienced a mixed performance in FY23. While some companies demonstrated growth, others faced challenges.
Earnings in India’s speciality chemical sector recalibrated, dropping by 35-50 percent from their FY23 peaks after enjoying nearly two years of strong performance.
The underperformance of speciality chemical stocks in India in FY23 can be attributed to several factors, including the impact of the COVID-19 pandemic, rising input costs, and supply chain disruptions.
Additionally, the sector faced challenges such as regulatory hurdles, environmental concerns, and infrastructure constraints.
However, the Indian speciality chemical sector is expected to witness about 6-7 percent revenue growth in FY24, reaching a valuation of around 65 billion US dollars by the end of the financial year.
The sector’s growth is attributed to increasing global demand, the government’s introduction of capital subsidies, and the industry’s contribution to India’s economic growth.
Listed below are the speciality chemical stocks that have declared their quarterly results:
Navin Fluorine International Ltd
With a market capitalization of Rs. 15,498 crores, shares of Navin Fluorine International Ltd started Thursday’s trading session on a higher note at Rs. 3,115 compared to its previous close of Rs. 3,102. During the trading session, the shares hit a high of Rs. 3,140, making a gain of around 1 percent and are currently trading at Rs. 3,124 apiece.
Looking at the company’s recent financial statements, the revenue increased by 6 percent from Rs. 472 crores during the September quarter to Rs. 502 crores in the December quarter. In addition, the net profits zoomed by 28 percent from Rs. 61 crores to Rs. 78 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue decreased by 11 percent from Rs. 564 crores during Q3FY23 to Rs. 502 crores in Q3FY24. On the other hand, the net profits declined by 42 percent from Rs. 107 crores to Rs. 62 crores during the same period.
BASF India Ltd
With a market capitalization of Rs. 14,689 crores, shares of BASF India Ltd started Thursday’s trading session on a flatter note at Rs. 3,344 compared to its previous close of Rs. 3,343. During the trading session, the shares hit a high of Rs. 3,415, making a gain of around 2 percent and are currently trading at Rs. 3,390 apiece.
Looking at the company’s recent standalone financial statements, the revenue decreased by 10 percent from Rs. 3,707 crores during the September quarter to Rs. 3,326 crores in the December quarter. In addition, the net profits decreased by 6 percent from Rs. 149 crores to Rs. 140 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue increased by 15 percent from Rs. 2,898 crores during Q3FY23 to Rs. 3,326 crores in Q3FY24. On the other hand, the net profits magnified by 1,172 percent from Rs. 11 crores to Rs. 140 crores during the same period.
Gujarat Fluorochemicals Ltd
With a market capitalisation of Rs. 37,528 crores, shares of Gujarat Fluorochemicals Ltd started Thursday’s trading session on a higher note at Rs. 3,521 compared to its previous close of Rs. 3,465. During the trading session, the shares hit a low of Rs. 3,402, making a loss of around 2 percent and are currently trading at Rs. 3,428 apiece.
Looking at the company’s recent financial statements, the revenue increased by 5 percent from Rs. 947 crores during the September quarter to Rs. 992 crores in the December quarter. In addition, the net profits zoomed by 51 percent from Rs. 53 crores to Rs. 80 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue decreased by 30 percent from Rs. 1,418 crores during Q3FY23 to Rs. 992 crores in Q3FY24. On the other hand, the net profits declined by 74 percent from Rs. 311 crores to Rs. 80 crores during the same period.
Deepak Nitrite Ltd
With a market capitalization of Rs. 31,747 crores, shares of Deepak Nitrite Ltd started Thursday’s trading session on a higher note at Rs. 2,270 compared to its previous close of Rs. 2,256. During the trading session, the shares hit a high of Rs. 2,334, gaining around 4 percent and are currently trading at Rs. 2,326 apiece.
Looking at the company’s recent financial statements, the revenue increased by 13 percent from Rs. 1,778 crores during the September quarter to Rs. 2,009 crores in the December quarter. In addition, the net profits decreased marginally by 1.5 percent from Rs. 205 crores to Rs. 202 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue increased marginally by 1 percent from Rs. 1,991 crores during Q3FY23 to Rs. 2,009 crores in Q3FY24. On the other hand, the net profits decreased by 3.3 percent from Rs. 209 crores to Rs. 202 crores during the same period.
Written By Vaibhav Patil
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