Asahi Songwon Colors reports a weak quarter with revenue down around 6 percent. In an interview to CNBC-TV18, Gokul Jaykrishna, Joint MD of the company spoke about the results and his outlook going ahead.
Jaykrishna said domestic sales were impacted by goods and services tax (GST). Prices of raw materials shot up in Q1 which affected EBITDA, he added.
70-75 percent of company's revenue comes from CPC blue crude which is a feedstock raw material for beta blue and alpha blue and about 20-25 percent comes from Beta Blue, said Jaykrishna.
He is expecting CPC blue crude and beta blue to have 90 percent utilisation going ahead.
On order book front, he said, it is full till December.
Asahi Songwon is looking at greenfield expansion in the pigment segment, he further mentioned.
"Right now, we are focusing more on greenfield expansion rather than inorganic growth but if anything comes around, we are open to look at it," he said.
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