Rallis India - Margin Pressure Likely To Persist In Near Term: Prabhudas Lilladher

Prabhudas Lilladher Report

Rallis India Ltd. in their pre-quarterly conference call highlighted that -

1. domestic crop care business likely to post subdued performance primarily led by tepid demand due to disproportionate rainfall resulting into lower pest infestation and miss in sprays;

2. exports at a better-off position led by improved demand scenario globally supported by better product and price mix, however have cautious outlook due to drought in U.S. and European markets;

3. herbicides continues to outperform (to post double digit growth in Q2) as compared to insecticides and fungicides category;

4. launched three new 9(3) molecules in H1 FY23 as against guidance of four product launches in FY23E, additionally launched five new 9(4) molecules in H1 FY23;

5. crop nutrition business to post double digit revenue growth, aided by better product mix;

6. high cost inventory to exert pressure in near term, however remains confident to maintain absolute Ebitda led by recent price hikes.

We expect revenue/profit after tax compound annual growth rate of 13%/18% over FY22-25E (versus 8%/3% over FY11-22).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.