Q4FY18 Sectoral Earnings

 Major chemical and agro-chemical companies have come up with financial performance for the last quarter of FY18.

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The agro-chemical companies disappointed the street as these companies could not live up to the financial performance expected of them. However, the forecast of favourable monsoon this year is expected to revive the agro-chemical companies going ahead.

We have analysed 36 chemical companies according to their market caps. During Q4FY18, the industry reported decent revenue growth of around 14 percent on a YoY basis and 8 percent growth on a QoQ basis. Also, at the operating level, the industry has delivered growth of around 48 percent on a YoY basis during Q4FY18. Also, in terms of profitability, the industry has delivered significant growth of 96 percent YoY, and a moderate growth of 16 percent on QoQ basis.

The chemical major, Pidilite Industries, reported muted revenue growth of 3 percent, whereas its PBDIT remained same. However, it has outperformed at the bottom line level with a jump of 235 percent. Further, Godrej Industries posted moderate growth of 6 percent in revenue, but registered tremendous growth of 136 percent in PBDIT and 41 percent in bottom line. Further, Solar Industries has reported muted growth of 4 percent in revenue and 8 percent at PBDIT level and registered 22 percent growth in terms of profit.

The overall operational performance of the entire industry was mainly affected by sharp changes in crude oil prices due to the unfavourable macroeconomic environment, which had led to huge volatility in raw material prices.

Coming to the Fertiliser industry, major fertiliser companies have come up with financial performance for the last quarter of FY18. We have analysed 17 chemical companies according to their market caps. Overall, the industry has delivered significant jump in terms of revenue and operating profit by 98 per cent YoY and 132 per cent YoY, respectively. However, the overall profitability has deteriorated by almost 21 per cent during the quarter.