- Looks like worst seems to be over. Last quarters they said that they will pass on price hikes to their client starting Q1, which seems to have aided margin.
- Current reduction is oil prices shall help them slightly in term of RM cost, but not much.
- There are number of reports stating that supply chain issues (container shortage) are easing along with reduction is prices. This may help them in coming quarters.
- China’s big player have started PAP production last quarters and hopefully they shall get supply from them from Q2/Q3. Additionally Sadhana Nitro also started producing PAP domestically. Once they stabilises their plants and get approval to supply to Granules, this should ease of pressure on Paracetamol API Considerably in coming quarters.
So, H2 profitability shall be considerably higher than H1 profitability as they pass on more prices and supply chain issues are eased.
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