Rallis India - Q1FY21 First Cut - ICICI Securities

(CMP: Rs. 306, MCap: Rs. 5951 crore)

Rallis reported topline below estimates. However, margins were ahead of estimates due to better gross margins.

Q1FY21 Earnings Summary

- Rallis reported topline growth of 6% YoY to Rs. 663 crore against our expectations of Rs. 725 crore. We believe the growth is lower despite there was some lower despatches on the ground due to lockdown in Q4FY20 and pre buying pattern across the farmers due to fear of extension of lockdown during the quarter

- Better gross margins (+230bps YoY) translated into expansion in operational performance. OPM improved by 415bps YoY to 19.4% resulting into EBITDA growth of 35.4% YoY to Rs. 128 crore against our expectations of Rs. 110 crore

- Better operational performance, higher other income (+47% YoY) and lower taxes (23.5% vs 30.7% in Q1FY20) led bottom line growth of 52.6% YoY to Rs. 91.9 crore against our expectations of Rs. 80 crore

We would be coming out with a detailed report soon.

Shares of RALLIS INDIA LTD. was last trading in BSE at Rs.306 as compared to the previous close of Rs. 299.35. The total number of shares traded during the day was 94738 in over 3330 trades.

The stock hit an intraday high of Rs. 309.35 and intraday low of 300.2. The net turnover during the day was Rs. 28919091.

Source : Equity Bulls

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