Specialty Chemicals Q4 Preview | Revenue growth seen strong on firm demand

Specialty Chemicals Q4 Preview | Revenue growth seen strong on firm demand

Margins of specialty chemicals companies will see pressure on a year-on-year basis given the more than 36% jump in crude oil in the March quarter.





Mumbai / April 16, 2022 / 07:13 AM IST





Chemicals



Specialty chemical companies are expected to report strong growth in revenues in the quarter ended March, aided by better realisations and firm volumes, said analysts polled by Moneycontrol.

The sector continued to see strong demand during the quarter as the global economy recovered from the impact of persistent lockdowns even though the spread of the Omicron variant of COVID-19 early in the quarter raised some concerns.

While input prices for specialty chemical companies jumped in the quarter due to higher global crude oil prices, analysts suggested that most companies were able to pass on higher costs to customers, given their dominant market positions in certain products.

Brokerage firm KRChoksey Shares and Securities expects chemicals stock covered by it to report 28.4 percent on-year growth in revenues in the reporting quarter led by volume growth due to better mix of products and price hikes.

“During Q4FY22 rebound in the demand for major end user industries will play as an important factor for our chemical universe companies