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Dhanuka Agritech Q3 Results Review - Margin Pressure Likely To Persist In Near Term: Prabhudas Lilladher

Gross margins contracted 220 bps YoY led by high cost inventory.

<div class="paragraphs"><p>A farm worker sprays fertilisers.&nbsp;(Source: iStock)</p></div>
A farm worker sprays fertilisers. (Source: iStock)

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Prabhudas Lilladher Report

Dhanuka Agritech Ltd. reported subdued set of numbers in-line with our and consensus estimates led by revenue/Ebitda/profit after tax growth of +10%/- 6%/+3% YoY, amid challenges related to higher channel inventory and cost pressures.

Dhanuka Agritech remains confident of achieving double digit YoY revenue growth in FY23E with absolute Ebitda to be maintained at FY22 levels citing-

  1. positive demand outlook in domestic market led by good soil moisture and

  2. healthy water reservoir levels (particularly in the Southern India) coupled with remunerative crop prices.

We expect revenue/profit after tax compound annual growth rate of 13%/12% over FY22-FY25E.

Click on the attachment to read the full report:

Prabhudas Lilladher Dhanuka Agritech Q3FY23 Results Review.pdf
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