Rallis India - Q2FY21 First Cut - ICICI Securities

(CMP: Rs. 273, MCap: Rs. 5317 crore)

Numbers are below estimates primarily impacted by the subdued performance of the international market.

Q2FY21 Earnings Summary

- Rallis reported topline de-growth of 3% YoY to Rs. 725 crore against our expectations of Rs. 780 crore. The topline performance was remained below expectations owing to poor sales from international market, which was down by 29% YoY. On the other side, domestic agrochemical business registered a growth of 8% YoY, while the seed business grew by 29% YoY. We believe the growth from international market was partly impacted by realisation pressure in metribuzin prices along with lower offtake of PEKK under CRAMS portfolio

- Better gross margins (+201 bps YoY) negated lack of absorption of fixed overheads, resulting into OPM expansion by marginally 30bps YoY to 16.1%. EBITDA fell by 1.6% YoY to Rs. 116.8 crore

- PAT was down 4% YoY to Rs. 81.3 crore against our estimates of Rs. 111 crore

- The company managed to reduce working capital cycle from 104 days to 65 days resulting into FCF generation of Rs. 85 crore as against Rs. 66 crore generation last year

We would be coming out with a detailed report soon.

Shares of RALLIS INDIA LTD. was last trading in BSE at Rs.273.4 as compared to the previous close of Rs. 272.4. The total number of shares traded during the day was 31114 in over 1444 trades.

The stock hit an intraday high of Rs. 279.15 and intraday low of 270.3. The net turnover during the day was Rs. 8539106.

Source : Equity Bulls

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