Grasim Q1 Review - Chemical Segment Leads To Better-Than-Estimated Quarter: Motilal Oswal

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.’s Q1 FY23 result was above our estimate with Ebitda at Rs 13.2 billion (versus estimated Rs 11.7 billion) and operating profit margin at 18% (versus estimated 17%). Chemical segment’s OPM stood at 29.5% (up 9% QoQ) versus estimated 24%. Viscose staple fibre segment’s OPM was at 11.6% (up 5% QoQ) versus estimated 13.8%. Grasim's profit stood at Rs 8.1 billion (versus estimated Rs 6.7 billion) in Q1 FY23. Recent decline in VSF prices in China coupled with reduced orders by the U.S. and European retailers in anticipation of a demand slowdown can hurt the company’s near-term margins. Caustic soda prices too have declined in the global markets and hence, chemical segment margins may see some pressure going forward..Click on the attachment to read the full report:.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.

Grasim Q1 Review - Chemical Segment Leads To Better-Than-Estimated Quarter: Motilal Oswal