Rallis reports numbers in line with our estimatesRALLIS - 201 Change: 0.55 (0.27 %)
News: Rallis reported revenue growth of 10.1% YoY to Rs.628.1 crore against our estimates of Rs.622.6 crore, led by international business growth of 19% YoY. The revenue from domestic crop care grew 9% YoY while the same from seeds fell by 31% YoY to Rs.28 crore. OPM improved 20 bps YoY to 10.7% leading to EBITDA growth of 12.1% YoY to Rs.67.4 crore against our estimates of Rs.62.7 crore. PAT for the quarter declined 3.8% YoY to Rs.39.6 crore against our estimates of Rs.38.4 crore. The drag in bottomline performance was largely on account of higher depreciation owing to recently commissioned capacity along with lower other income (-28% YoY).
Views: The company has been working on backward integration of few molecules along with increasing capacity for few active ingredients to cater to international market. This would eventually translate into better financial performance ahead. Apart from this, diversifying into Rabi focused portfolio over the time could improve growth outlook in long run.