Earnings Review: Navin Fluorine PAT, sales up Apr-Jun but margin down

23 Jul 2022

Navin Fluorine International Ltd's topline grew 23% on year and its bottomline rose 40%, in the quarter ended June, but the earnings performance was marked by a contraction in its operating margin.

The chemical company’s net profit of 790 mln rupees in Apr-Jun was slightly above analysts’ estimate of 774 mln rupees, but net sales of 3.87 bln rupees missed analysts’ estimate of 4.4 bln rupees.

Sequentially, Navin Fluorine’s net profit growth was flat while net sales recorded a 3% decline.

In Apr-Jun, the company’s operating profit was up 11% on year and down 16% on quarter to 820 mln rupees. The operating margin contracted to 22.2% from 23.9% in the year-ago period and 24.3% in the previous quarter.

The company’s net profit in Apr-Jun was aided by a rise in other income to 142 mln rupees from 76 mln rupees a year ago.

Tax expenses were 234 mln rupees in Apr-Jun, up 31% on year.

On a consolidated basis, Navin Fluorine’s net profit was 745 mln rupees in Apr-Jun, up from 559 mln rupees a year ago, while its net sales was 3.98 bln rupees, up from 3.27 bln rupees.