Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
Manage your Savings, Demat and Trading Account conveniently at one place
News: Revenues grew 5% YoY to ₹ 2221 crore driven by 10% growth in agrochemicals exports (CSM) to ₹ 1720 crore. Domestic agrochemicals on the other hand were subdued and de-grew 5% YoY to ₹ 460 crore. Pharma CRDMO sales stood at ₹ 41 crore, a de-growth of 43%. EBITDA grew ~14% YoY to ₹ 628 crore and margins stood at ~28.3% (~230 bps improvement) driven by 520 bps improvement in GPM to 51.8%, attributable to better product mix. PAT grew 13% YoY to ₹ 508 crore.
Views: While CSM exports growth was driven by volume growth and newly commercialised products (grew 42% YoY), the domestic de-growth was attributable to reduced supplies to institutional customers. Pharma CRDMO declined due to higher inventory with the innovators. The proposed acquisition of UK based Plant Health Care Plc (PHC), which possess industry-leading knowledge, products, IP and experience in protein/ peptide technology in the agricultural biological space, the company intends to further strengthen the CSM franchisee. PI remains a standout performer among other Indian Agrochem players due to strong and sustainable CSM performance. That said, the poor trend in domestic agrochem and Pharma CRDMO (in the backdrop of better performances in both these segments by peers) is a matter of some concern.
Impact: Neutral