Rallis India - 3QFY2014 results - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP - Research, Pharma, Angel Broking) on Rallis India 3QFY2014 results:

"Rallis India, reported robust numbers for the 3QFY2014.The company posted sales and adj. net profit of Rs. 396cr and Rs. 29cr, registering a growth of yoy of 16.5% and 30.0% respectively. The gross profit during the quarter came in at 40.8% an expansion of 173bps; however, in spite of the same the OPM's came in at 12.8% V/s 12.9% during the last corresponding quarter. The tax provision, during the quarter came in at 41.5% of PBT V/s 28.0% in 3QFY2013 impacted the net profit growth. Thus, the net profit before tax come in at Rs. 45cr, posting a growth of 35.3% yoy , however on back of higher taxation during the quarter lead the adj. net profit growth to come in at 30.0%. On the other hand the, reported net profit came in at Rs. 30cr, registering a yoy growth of 38.0%, on back of higher other income. We recommend a Neutral rating on the stock."

Rallis India (CMP: Rs. 178/ TP: -/ Upside: -)

Source : Equity Bulls

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