Q3FY23 Result Update - Rallis India - ICICI Direct

Rallis' numbers were below I-direct estimates led by erratic rainfall in the domestic market and headwinds in international markets.

- Revenues remained flat YoY to Rs. 630 crore. Domestic crop care increased 7% YoY while seed segment was down 14%. Geography wise, domestic crop protection business grew ~8%, crop nutrition business by 22% but exports declined 6.5%

- Gross margins contracted 83 bps YoY to ~39.4%. However, gross margins increased 508 bps QoQ reflecting a softening of raw material costs

- EBITDA declined 20.9% YoY to Rs. 53 crore. Crop care segment EBITDA increased 134% YoY to Rs. 71 crore while seeds segment EBITDA declined 64% to -Rs. 18 crore. Adjusted PAT declined 43.1% YoY to Rs. 22.5 crore

Key triggers for future price performance

- Increases in commodity prices such as wheat, paddy and cotton may aid the crop protection business in the coming quarters

- Backward integration of few technical could help translate into improvement in gross margins

- Good growth momentum in crop nutrition segment can lead to decent gross margins ahead

For details, click on the link below: Link to the report

Shares of Rallis India Limited was last trading in BSE at Rs. 225.15 as compared to the previous close of Rs. 223.85. The total number of shares traded during the day was 39979 in over 1140 trades.

The stock hit an intraday high of Rs. 227.35 and intraday low of 223.40. The net turnover during the day was Rs. 9010622.00.

Source : Equity Bulls

Keywords

RallisIndia INE613A01020 Q3FY23 ResultUpdate ICICIDirect