Vinati Organics Ltd. share price target

Expect a subdued performance owing to weak ATBS demand

VOL is currently facing near-term demand challenges in the ATBS segment, as customers globally are destocking coupled with lower demand from both the oil field application and water treatment sectors on a global scale.

VOL delivered revenue growth of +37.87% YoY and a decline of 11.33% QoQ to INR 5,087mn, the de-growth on a QoQ basis was due to a contraction in volumes in the ATBS segment. The management believes that this volume reduction is temporary, and it is expected to turn around in the coming quarter because of the larger expansion plans, increasing the capacity from 40,000 MT to 60,000 MT and the strong demand for the product.

Strong demand outlook improves near-term growth prospects

In Q2FY23, VOL’s consolidated revenue grew by 11.85% YoY and by 51.38% QoQ to INR 5,663 Mn. Overall demand growth was led by ATBS and IBB business. 1HY23 revenue came at INR 10,072 Mn.