Sumitomo Chemical posts Q1FY23 numbersSUMICHEM - 412 Change: 3.00 (0.73 %)
News: Sumitomo Chemical reported topline growth of 26% YoY to Rs 985.5 crore against our expectations of Rs 876.9 crore. The segmental details are still awaited but we expect both domestic and exports should have led higher top line growth for the quarter. OPM for the quarter marginally fell by 20bps YoY to 19% owing to higher RMAT cost (+100bps YoY), which led EBITDA to grow at 25% YoY to Rs 187.6 crore against our estimates of Rs 184.2 crore. Lower taxes (23% v/s 26% in Q1FY22) led bottom-line to grow at 31% YoY to Rs 138.1 crore against our estimates of Rs 134.6 crore.
Views: We believe the company has been able to register strong growth despite there has been delay in the rainfall during Q1. We expect Higher glyphosate pries assisted strong topline growth for the quarter. Apart from this, strong demand from exports also fuelled growth during the quarter Moreover, its speciality segment has been witnessing strong growth and thereby one can expect sustainability of operational performance. We believe, on the longer time frame, the story remains intake given that SCC Japan’s plans to outsource part of their technical requirements to Sumitomo Chemical India. Further, Nufarm can also aid strong revenue visibly for Sumitomo chemical India going ahead.