- 20 Oct 2022
- ICICIdirect Research
RALLIS INDIA REPORTS Q2FY23 NUMBERS
RALLIS - 290 Change: 0.60 (0.21 %)News:
Rallis reported topline growth of 30.7% YoY to Rs 951.2 crore against our expectation of Rs 923.2 crore. Crop care segment grew 31% YoY to Rs 923.2 crore while seeds segment grew 12% YoY to Rs 28 crore. Domestic market revenue grew 19% YoY to Rs 636 crore while international market grew 64% YoY to Rs 315.2 crore. Higher COGS (+35% YoY) affected gross profit margins by 190 bps YoY to 34.3%. EBITDA for the quarter was down 70 bps to 12.4%. Absolute EBITDA came in at Rs 117.6 crore vs. our estimate of Rs 118.6 crore. Rallis reported adjusted PAT at Rs 71.1 crore vs. our estimate of Rs 73 crore (up 26% YoY) though other income has declined 72% YoY to Rs 2.1 crore.
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While H1 numbers were stable on the revenue front, it needs to be seen how H2 pans out in the backdrop of erratic monsoons. Challenges surrounding raw material procurement, price inflation have impacted margins. Further, the company is able to pass on input price inflation partly. With new products being launched in H2, better product mix and better distribution networks we expect margins to rebound.
Impact:
Neutral.