Atul Q4 Results Review - Volumes Revive; Realisations Remain Under Pressure: Systematix

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Atul Ltd.’s Q4 FY24 operating performance was broadly in line, with revenue/Ebitda recording +1%/-1% YoY and +7%/-3% QoQ growth, respectively. While revenue in its performance and other chemicals segment was up 5% YoY and 3% QoQ, its life science chemicals segment reflected 12% QoQ growth but 8% YoY fall.The crop protection division suffered on account of increased capacity in China but lower demand, although pharmaceuticals fared well. Gross margin expanded 392 bps YoY and 261 bps QoQ to 49.7% versus our estimate of 46.5%. Ebitda margin contracted 32 basis points YoY and 116 bps QoQ to 12.2% on higher other expense. Ebitda fell slightly by 1% YoY and 3% QoQ to Rs 1.5 billion but was broadly in line. Higher depreciation (+48% YoY, +24% QoQ) and interest expense (+132% YoY, +139% QoQ) along with lower other income (-47% YoY, -14% QoQ) led to profit before tax tumbling 34% YoY and 23% QoQ. Adjusted profit after tax at Rs 584 million fell 38% YoY and 18% QoQ, 16% lower than our estimate. Management cited QoQ improvement in outlook for POC, and expects the segment to generate profitability Q1 FY25 onwards. However, in the LSC segment, high channel inventory of 2,4D and weak demand outlook could pressure profitability. We have cut Ebitda margin by 50 bps, Ebitda by 17% and EPS by 32% for FY25E. We roll forward estimates to FY26 and maintain Hold with a revised target price of Rs 5,949 (Rs 7,295 earlier), based on a 30 times FY26E price/earning (unchanged).Click on the attachment to read the full report:.Kotak Mahindra Bank Q4 Results Review - Strong Quarter; One-Off Gains Boost Earnings Further: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Atul Q4 Results Review - Volumes Revive; Realisations Remain Under Pressure: Systematix

Atul’s Q4 operating performance was broadly in line, with revenue/Ebitda recording +1%/-1% YoY and +7%/-3% QoQ growth, respectively

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Atul Q4 Results Review - Volumes Revive; Realisations Remain Under Pressure: Systematix

Atul’s Q4 operating performance was broadly in line, with revenue/Ebitda recording +1%/-1% YoY and +7%/-3% QoQ growth, respectively

Choose a plan

Follow Us

DOWNLOAD THE APP