Insecticides India's sharp contraction of 690 bps in gross margin was driven by (a) raw material cost inflation (b) Scarcity in raw material supply of Maharatna products that deteriorated sales mix in favour of generic products (at 60% v/s 55% YoY) and (c) heightened competition in Nuvaan (to be banned on 31.12.20). The management expects margins to improve in Q2 as Maharatna sales are expected to pick up. FY21 looks like a challenging year for INST due to (a) significant reduction in sale of Thimet and Nuvan (FY20~Rs 1.7 bn; FY21E Rs 450 mn) (b) INST as well as its suppliers face pressure due to labour unavailability and logistics issues and (c) Challenges in the...