Topline growth momentum to continue through Q4FY22: Rossari Biotech

Rossari Biotech’s topline growth momentum will continue through Q4FY22, Ketan Sablok, group chief financial officer, told CNBC-TV18.

The company reported earnings for the December 31, 2021-ended quarter with revenues aided by acquisitions but posted weak margins of around 11 percent versus 16 percent last year.

Sablok further said that margin compression in Q2 and Q3FY22 was because of volatility in raw material prices. He said, “We expect raw material volatility to continue for another 2 quarters. If things improve in Q1FY23 then probably we will be back on track to our margins, which we were showing last year; about 15 percent plus EBITDA margin is what we have been tracking and we will come back to that once prices become more stable.”

According to him, capacity utilisation will improve once the raw material situation improves. “Once the raw material situation improves where we can take long calls and book longer contractual orders then our capacity utilization will improve significantly, said Sablok.

For the entire interview, watch the video