- 20 Jul 2022
- ICICIdirect Research
Rallis reports Q1FY23 numbersRALLIS - 193 Change: 0.30 (0.16 %)
News: Rallis reported revenue growth of 16.5% YoY to Rs 862.8 crore against our estimates of Rs 816 crore. The growth was largely led by exports, which was up by 51% YoY. The domestic crop care business grew by 17.1% YoY. Higher COGS (+22% YoY) dented operational growth, which fell by 7.3% YoY to Rs 112.7 crore against our estimates of Rs 121.4 crore. OPM stood at 13.1% (-335bps YoY). Adjusted PAT declined by 19% YoY to Rs 67 crore against our estimates of Rs 80.8 crore.
Views: The company has been able to register strong growth in the international market, while delay in monsoon led lower growth in the domestic market. We expect domestic business can witness strong rebound in Q2 due to healthy rainfall during July. In terms of RMAT inflation, company is able to pass on input inflation partly. We expect higher agri commodity prices in turn improves farm income and thereby increases the ability of the company to pass on input inflation in the upcoming quarter. This should normalise gross margins ahead, however any material increase in the input inflation or crude henceforth can impede operational growth during this fiscal as well.