Agro Chemicals Q2 Results Preview - Subdued Quarter; Outlook Remains Bleak: Prabhudas Lilladher

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Our discussions with industry experts and channel partners suggests that, the domestic industry will likely exhibit a subdued performance in Q2 FY24, with growth expected to be in the mid-single to low double digits YoY. This subdued outlook is primarily attributed to the delayed onset of monsoons, leading to a postponement in crop acreages and subsequently resulting in lower volume off tick. We expect a modest 5% YoY revenue growth for this period for our coverage universe. While we anticipate a 4% YoY increase in absolute Ebitda for our coverage universe, it is crucial to note that EBITDA margins are likely to face pressure, declining by 20 basis points YoY. This margin strain is a consequence of the price cuts to the tune of 8-10% (particularly for the generics) implemented during the quarter. That said, we continue to maintain our cautious stance on the sector largely led by-looming fears of El-Nino for the upcoming Rabi season (H2 contributing around 40% of the total revenues); pressure on prices realisations amid a falling raw material cost scenario (particularly generic molecules) andlower water reservoir levels pose a significant concern for the upcoming Rabi season, as it is primarily dependent on adequate water supply. While, on the exports side lower demand in key geographies coupled with higher inventory pile-up is likely to keep the performance under check in near term for exporters.We continue to like PI Industries Ltd. in the agrochemical space.Click on the attachment to read the full report:.Q2 FY24 Results Preview - A Quarter Of Strong Earnings Fueled By Domestic Cyclicals: Motilal Oswal.DISCLAIMERThis 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."

Agro Chemicals Q2 Results Preview - Subdued Quarter; Outlook Remains Bleak: Prabhudas Lilladher

This subdued outlook is primarily attributed to the delayed onset of monsoons, leading to a postponement in crop acreages.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Agro Chemicals Q2 Results Preview - Subdued Quarter; Outlook Remains Bleak: Prabhudas Lilladher

This subdued outlook is primarily attributed to the delayed onset of monsoons, leading to a postponement in crop acreages.

Choose a plan

Follow Us

DOWNLOAD THE APP