Navin Fluorine Q1 Review – Raw Material Price Inflation To Weigh On Margins: Motilal Oswal

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Navin Fluorine International Ltd. reported a marginal miss on revenues (down 5% estimate), although Ebitda was 11% below our estimates, weighed by higher other expenditure.

Thus, despite gross margin expansion of 200 basis points QoQ to 55%, the Ebitda margin contracted 120 bps QoQ to 24.8%.

Navin Fluorine’s management has highlighted that the gross margin is likely to be under pressure as one of the key raw materials saw a significant price increase in Q1 FY22 – which is likely to continue for another quarter.

Furthermore, a large mineral mine was closed down due to labour issues and is expected to resume operations by the end of the year.

Click on the attachment to read the full report:

Motilal Oswal Navin Fluorine Q1FY22 Result Update.pdf


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