China’s power crisis has caused rise in price of intermediate chemicals and key starting materials. Pharma players who are dependent on China for raw materials will see rise in input costs and subsequently margin contraction can happen in coming quarters as they can’t pass down the cost in a short period of time.
I’ve analysed conference calls of few players and I’m sharing that here.
Supply chain disruptions, higher freight charges and rise in raw material prices were already there on Q2. I believe, China’s power crisis may aggravate the problem.
If anyone have other opinion or something to add, kindly share.