Q4 tepid for speciality chemical firms as cocktail of factors play spoilsport
- Input cost moderation and a reduction in energy and fuel costs could offer some respite for margins. Likewise, ebbing logistics costs are expected to lend support. However, agri-input companies might encounter volume and margin hurdles in Q1FY24 due to high inventory that still requires liquidation
Speciality chemical companies reported lacklustre performance in the March quarter (Q4FY23), reacting to a host of unfavourable market conditions. Softening of raw material prices, demand slowdown across specific end-user industries, and liquidation of channel inventory played spoilsport.