Rallis India - Q2 FY2013 Result Analysis - Hold - Microsec

Rallis India (Rallis), a subsidiary of Tata Chemicals engaged in the business of pesticides, seeds, agri services, contact manufacturing. It announced its Q2 FY2013 results on 17 October 2012. The top-line of the company grew by 11.76% on yoy basis due to price increase of its selected products but volume was affected.

The EBITDA margin was down by 136 basis points as the 10% rupee depreciation increase 3-5% of production cost. The bottom-line growth of 5.19% can be attributed by Rs.24 Mn forex gain against Rs.66.8 Mn loss on yoy basis. During Q2 FY13, the short term borrowing has jumped from Rs.649.8 Mn to Rs.1275.7 Mn on account of the working capital requirement of Metahelix.

The company had additional investment in the promotional activities to position its subsidiary Metahelix products and in the new R&D centre at Bangaluru. Rallis launched B-Bandhan-dealer portal to increase its top line. The company declared interim dividend of Rs.1 per share. We maintain our estimates and "Hold" recommendation about the stock.

Source : Equity Bulls

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