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Kumiai Chemical Industry (Kumiai) has revised up its H1FY25 revenue guidance by ~9% to JPY96bn from JPY88bn, citing that net sales are expected to exceed the forecast due to advanced shipment to overseas markets in its Agchem business.

further capacities in the medium term. Molecule-wise commercialisation should commence FY23 onwards. SUMICHEM also plans to buy 2 land parcels of 70 acres in total for its future expansion plans. We increase topline/EBITDA/APAT estimates by 2% for each of FY22 & FY23. Due to recent run-up in stock price, we downgrade the stock to REDUCE' (from HOLD), as upside looks capped because of expensive valuations (@ 43.5x FY23E EPS). We assign TP of Rs 376 (Previous 369) based on 38x FY23E EPS of Rs 9.9....

Rallis' 2QFY21 earnings print was below our estimates by 7.1% on sales and 21.2% on EBITDA. Sales/EBITDA/PAT stood at Rs 7.25bn/1.17bn/830mn down by 3.2/1.6/3.3% YoY. We had anticipated fall in sales of international business, however the reported fall was even steeper (down 29% YoY to Rs 1.54bn) than our expectations. Domestic business did report a decent growth by...

Rallis grew its consolidated sales by a 6.3% YoY to Rs 6.62bn (D.est: Rs 6.73bn). Controlled other expenses (up 0.7% YoY to Rs 492mn) and employee costs (down 4.7% YoY to Rs 857mn) helped in deriving operating leverage, also a richer product mix supported healthy gross margin expansion of 230 bps YoY to 39.7%. Thus, growth in EBITDA (D.est: Rs 990mn) and PAT (D.est: Rs 705mn) of 35.4% YoY and 52.1% YoY to Rs 1.28bn and Rs 919mn came ahead of our estimates. Within the crop care segment (ex-seeds), domestic business grew by...

Bayer CropScience reported 29% yoy revenue growth to Rs6.2bn in Q3FY19, which was above our and consensus estimates. Despite overall domestic remaining under stress the performance was driven by rice, fruits and vegetable segments. Gross margins improved by 130bps yoy to 42% owing to better product mix and inventory gains. EBITDA margin expanded 280bps yoy to 7.5% vs. our estimates of 5.7%....

Bayer reported a revenue decline of 10% yoy to Rs11.0bn, which was well below our and consensus estimates, primarily due to adverse weather conditions in India (uneven rainfall and hailstorms) which affected standing crops, leading to down-trading by farmers. Despite this, gross margins improved by 170bps yoy to 39.9% on better product mix and inventory gains. However, EBITDA margins contracted by 350bps yoy due to a lower...

For 2QFY2018 Rallis India (Rallis) reported a yoy growth of 9.1% in sales to `588cr (v/s. `539cr in 2QFY2017). The performance of Rallis was impacted during the quarter on the back of transition to GST and high channel inventory. On the operating front, the OPM came in at 20.8% (v/s. 17.8% in 2QFY2017). Owing to lower sales growth the Adj..

UPL posted good set of numbers for 1QFY2018. Sales came in at `3,723cr v/s. `3,644cr, a yoy growth of 7.8%. On operating front, the Gross profit margins came in at 59.2% v/s. 53.6% in 1QFY2017, which in part aided the OPM to come in at 18.6% v/s. 17.7% in 1QFY2017. The expansion in OPM was lower than the expansion in gross profit margins ..

Revenue growth has been weaker than expected in the CSM segment. This also shows up in weak growth in the order book from the last 4 quarters. Order book growth has been especially weak post Q4FY15. FY16E revenue estimates: CSM revenue is expected to be around Rs. 12990 Mn as against our earlier expectation of Rs. 13440 Mn. Domestic Agri business contribution is expected to be around Rs.8470 Mn as against our earlier expectation of Rs. 8811 Mn. FY17E estimates are expected to see a downward revision of Rs. 540 Mn in CSM segment and Rs. 544 Mn in Domestic Agri segment.

strict working capital norms (days: 5/37/3 in Q2FY15/Q4FY15/Q2FY16). However, the companyexpectstoreverseitsstrategyoncesentimentimproves 9 ManagementsaysnewproductssuchasHunkandOriginwerewellaccepted.Haslaunched...

Revenues of PI IN are expected to grow at a CAGR of 15.37% from FY15 to FY17E. Custom Synthesis & Manufacturing (CSM) revenue growth is expectedto moderate down to levels of around 18% on the back of high base and weakpricing (deflationary) environment in FY16E. CSM revenue contribution is expected to increase to 60.4% in FY16E and 62.5% in FY17E. Domestic Agribusiness is expected to clock in moderated revenue growth of around 10% in both FY16E and FY17E, expectedly led by volume growth, with no price growth assistance. Expectation of weak pricing environment is on the back of weak macro pricing environment in terms of both raw materials and agri-commodity prices. Also, decrease in cotton acreage by more than 8% in FY16E (kharif) is expected to continue to some extent even into FY17E.

Increasing proportion of manufactured goods in the overall revenue from 43%in FY15 to 44% in FY17E is expected to lead to a 20 basis points jump in grossmargins from 64.8% in FY15 to 65.0% in FY16E & FY17E. It could have been higher, if not for the weak macro-industry environment. This increase is expected to act as a cushion for the EBITDA margins going forward. But, significant dependence on traded goods will continue to act as a ceiling for margins. We expect EBITDA margins to remain stable at lower levels of 11.9% & 12.3% in FY16E & FY17E respectively.