Excellent results.
All positive but few negative points in the presentation :
"IPA sales volumes decreased by 42% y-o-y in Q1 mainly due to raw water
shortage and inability to pass through the rising cost of propylene raw
material and fuel. " IPA business once in lime light during COVID period is now below breakeven…
“Demand and pricing for all grades of Nitric Acid are relatively subdued as it is typically expected during the monsoon season.”
Q2 results are expected to be muted…
“In Q1 FY23, TAN Business achieved a capacity utilization of 111%. Volumes were supported by continued demand from Coal as reflected in Coal India’s and SCCL’s OB performance”
Tan business seems to be at peak volume with no capacity left for further volume growth, further TAN demand is muted in monsoon season becasue of lower mining activity…
There is an element of cyclicality in the business and Q1 apparently seems to be at peak performacne.
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