Sequential recovery to neutralise chemical companies' sales slump

Alchemy of revival: Early recovery catalysts blend with stable prices and eased supplier tensions

For the first time in multiple quarters, specialty chemical companies are likely to report a sequential increase in revenues and earnings for the January–March quarter (Q4). While the sector reported a 9 per cent sequential decline in revenues in the October-December quarter (Q3), it is expected to post 10–11 percent growth (quarter-on-quarter) in Q4.

Early signs of recovery, stabilising price levels, and easing pressure from Chinese suppliers are being cited as reasons for the improvement.

The October-December quarter had been muted for most companies as weak global demand on account of elevated channel inventory led to lower revenue and operating