The Finance Ministry has imposed antidumping duty on natural mica-based pearl industrial pigments, excluding cosmeticgrade products. The duty will be ~US$2-3/kg and will be levied for five years.

As per the initial document filed by the company, overall import volumes for mica pigment from key geographies is at ~2181 MT at an imported price of Rs 380/kg. The price undercutting is estimated to be ~20-30% as on inquiry date.

Mica pigment currently contributes in low single digits to overall revenue of Sudarshan Chemical. Based on calculation, sales volumes should be ~1300 MT against total capacity of ~3000 MT as per the pre-feasibility study report filed earlier.

ICICI Direct expects potential earnings benefits due to price hike to be ~4-5% on FY21 PAT. We have not factored in any potential market share gains due to anti-dumping, going ahead. Any positive development can aid bottomline in high single digits on FY21 PAT.