I think standalone numbers are quite good, only the Phenolics division showed stress due the higher input cost. Benzene prices had been going up, but they are normalising now. They peaked out at around $6.5-7 per gallon in Aug, and now they have come back to $3.2-4 per gallon range in September and October, which is more of a normalised price.
Also, Maulik Mehta mentioned in the last concall that the RM prices are softening and they will pass through the cost in coming quarters as they have formula-based pricing.
I don’t think QoQ power and fuel costs have gone down completely. And I am not talking about DNL only, but the other manufacturing companies (not only from chemical sectors) that have reported their numbers have shown higher power and fuel costs QoQ (YoY is obvious).
We will have to wait for management commentary for more clarification, but I am hopeful we should see improvements in numbers in Phenolics going forward as Acetone realisations become normal and input cost keeps on going downward.
Disc: Invested. No transaction in last 90 days.
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