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News: Gujarat Fluorochemicals posted decent Q4FY23 numbers. Consolidated revenue for Q4FY23 were at Rs 1471.4 crore, up 37% YoY. Segment wise, bulk chemicals fell 9% YoY to Rs 237 crore while fluorochemicals and fluoropolymers have grown 253% and 14% to Rs 476 crore and Rs 723 crore, respectively. Gross margins for Q4FY23 were up 108 bps YoY and down 40 bps QoQ to 72.1%. Absolute EBITDA was at Rs 529.3 crore, up 60% YoY with EBITDA margins increasing 510 bps YoY to 36%. Consolidated PAT was at Rs 331.9 crore
View: With the capex announcement of Rs 1500 crore for expanding capacities in fluoropolymers, refrigerant gases and battery chemicals and ramping up of fluorochemicals plants we believe Gujarat Fluorochemicals will witness strong growth revenue in coming quarters. Moreover, increasing applications of fluoropolymers especially in sectors like EV, solar panels, 5G, etc. will help GFL to report good numbers in the fluoropolymers business, going ahead. However, with bulk chemicals prices correcting and planned shutdown in fluoropolymers business is likely to impact business in the short-term
Impact: Positive