Indian chemical and agrochemical firms recorded a mixed performance in the third quarter of the current financial year, with several firms showing signs of recovery while others continue to face challenges. Meanwhile, a concern has been the dumping from China, which continues in some cases due to low demand in the region. However, some say it is close to the bottom and will reduce in the coming quarters.

CNBC-TV18 has curated a list of companies along with what their management has to say about their business outlook going forward:

Firms with a positive outlook

SRF: Anticipated improvement in performance starting from Q4, indicating potential growth opportunities ahead.

Balaji Amines: Reported sequential improvement driven by increased demand, with expectations of continued margin expansion in the upcoming quarters.

Aether Industries: Observed a resurgence in agrochemical demand and suggested that pricing had likely bottomed out, hinting at a favourable market environment.

Sumitomo Chemicals: Expect better traction in both domestic and export markets in FY25, signaling optimism for future growth prospects.

Jubilant Ingrevia: Noted the conclusion of destocking activities and highlighted the growing traction in the pharmaceutical sector, indicating a positive momentum.

Clean Science: Forewarned a slightly better FY25, supported by progressive demand across volumes. Although facing a slowdown in China, the company remained optimistic about its overall performance.

Aarti Industries: Witnessed demand recovery in segments like dyes, pigments, and polymers, with expectations of widespread demand normalization in the coming quarters. Sequential volume improvement and better pricing trends indicated positive momentum.

Firms with a cautious stance

Laxmi Organic: Highlighted ongoing market stabilisation efforts but noted weaker demand persisting in the sector, suggesting challenges ahead.

Sharda Cropchem: Expect an improvement in the situation by FY26, contingent on resolving weather-related and demand issues, indicating a longer path to recovery.

UPL: Projected a recovery from Q2FY25 onwards, with Q4 expected to remain weak, indicating continued challenges in the short term.

Tata Chemicals: Faced weak market demand across key geographies, exacerbated by dumping from Turkish markets. Pricing pressures were evident across regions, posing significant challenges.

PI Industries: Noted elevated inventory levels in the industry for crop agrochemical products, with ongoing price pressure from generics, signaling potential headwinds in the domestic market. However, the export markets continue to do well.

Source : CNBC TV18


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