- 24 May 2023
- ICICIdirect Research
SUDARSHAN CHEMICAL REPORTS DECENT Q4FY23 NUMBERS
SUDARSCHEM - 1258 Change: 6.70 (0.54 %)News: Sudarshan Chemicals Q4FY23 reported a significant beat across the board driven by a demand revival. Revenues grew 10% YoY, 30% QoQ to Rs 691 crore (I-direct estimate: Rs 588 crore) on the back of strong growth in the pigment exports market, which grew 8% YoY 26% QoQ to Rs 293 crore. The domestic pigment sales also grew 5% YoY, 20% QoQ to Rs 301 crore. The GPM improved 50 bps YoY, 150 bps QoQ to 41.5% while EBITDA margins contracted -140 bps YoY but improved 450 QoQ to 12.3% (I-direct estimate: 10.7%)
View: While the QoQ performance improvement in the domestic markets was expected on the back of changed user industry fortunes, the exports growth came in as a positive surprise in the backdrop of slowdown expectations in Europe. We will get some more insights from the management commentary especially on the margins front, which (although beat our estimates) still has to cover significant ground to reach optimum levels
Impact: Positive