Midcap Earnings Preview – Expect A Sequentially Muted Q1 Performance: Systematix

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Despite a strong growth momentum in the export market and an increase in the prices of most chemicals, we expect a QoQ decline in sales for our chemicals coverage universe due to a slowdown in domestic activities because of the lockdown (~50% sales from the domestic market) and lower volume offtake in the distribution channel.

Within textiles, we expect a high double-digit sales decline QoQ for the garment segment due to one-month production loss (May-2021) because of Covid-19 led restrictions.

The yarn and fabric industry will be less impacted as it works with a one-month inventory and the continued rise in yarn prices.

We remain positive on the packaging sector due to increased demand for packaging products post the pandemic and the expected industry consolidation.

Click on the attachment to read the full report:

Systematix Midcaps – Q1FY22 Result Preview.pdf


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