Grasim Q2 Results Review - Margin Under Pressure; Near-Term Outlook Cautious: Motilal Oswal
Mgmt said that demand for VSF remains under pressure globally, which, in turn, has led to rising imports from China and Indonesia.
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.
Motilal Oswal Report
Grasim Industries Ltd. faced margin pressures in key business segments (viscose staple fibre and chemical).
Ebitda grew 19% YoY to Rs 9.6 billion(our estimate: Rs 11.4 billion). Operating profit margin fell 2% YoY to 14% (our estimate: 15.7%). Adjusted profit grew 9% YoY to Rs 10.3 billion (our estimate: Rs 11.5 billion).
Grasim's management said that demand for VSF remains under pressure globally, which, in turn, has led to rising imports from China and Indonesia.
As the September 2022 exit price for VSF was 4% lower than its Q2 FY23 average, margin in Q3 FY23 could fall further.
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.