Rossari Biotech Q2 Results Review - Weak Raw Material Prices Led To Tepid Earnings Growth: Yes Securities

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..Yes Securities Report.Rossari Biotech Ltd.’s reported operating profits at Rs 636 million (+12% YoY; +10% QoQ). The Ebitda margin at 13.1% (Q1: 14.1%), lower on account of higher other costs and decision to grow volumes at minor cost of margins. The standalone earnings stood stronger with standalone Ebitda at Rs 483 million growing by 73% YoY and 38% QoQ, driven by a 14% YoY and +18% QoQ growth in revenue and improved Ebitda margin of 14.5%. Home, personal care, and performance chemicals segment saw strong contribution from institutional cleaning, paints home, and personal care, reporting a growth of 21%, textile specialty chemical grew by 5 %, while animal health nutrition was down by 28% QoQ which was result of prudence as difficulties were seen on payment terms leading the decision to reduce the feed business and met seasonally weak quarter due to double Shravan. To supplement Rossari's further growth, announced expansion of Dahej facility to foray into specialty chemicals and ingredients for subsidiaries. Unitop facility current capacity of 36k mtpa of ethoxylation operating at optimal levels, additional facility of 30,000 mtpa being added to meet future demand. Both these expansions will take place in phased manner till Q3 FY25. We maintain 'Buy' rating with revised target price of Rs 1,015/share..Click on the attachment to read the full report:.Clean Science - Margin To Decline, Valuation Expensive: HDFC Securities.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.

Rossari Biotech Q2 Results Review - Weak Raw Material Prices Led To Tepid Earnings Growth: Yes Securities

Rossari Biotech's reported operating profits at Rs 636 million (+12% YoY; +10% QoQ).

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