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...

Rallis India's 6% topline growth was significantly lower than estimates but 230 bps gross margin expansion and 143 bps savings in other expenses led to inline performance of EBITDA and APAT. Subdued topline growth was driven by 1) contraction in domestic B2B sales and 2) mere 5% & 3% growth in international business & seeds business respectively. Despite weak topline growth, outlook on Rallis remains robust as it is on track for a healthy double digit revenue CAGR. Domestic business growth is expected to be...

Rallis reported topline growth of 6% YoY to | 663 crore vs. our expectation of | 725 crore. The lower growth was primarily due to poor sales from seed and international business. Revenue from the seed business grew 2.8% YoY to | 261 crore while the same from crop protection was up 10.7% YoY to | 402 crore. Higher gross margins (up 230 bps YoY) due to increase in the realisation and change in the product mix translated into expansion in operational performance. OPM improved 415 bps YoY to 19.4% resulting in EBITDA growth of 35.4% YoY to | 128 crore vs. our expectation of | 110...

Rallis reported muted topline growth of 2% YoY to | 346 crore. Growth was hampered by a delay in dispatches for both domestic and international market post lockdown. The delay in dispatches for the domestic market remained at | 16 crore while the same for the international market was at | 53 crore. The crop protection segment posted growth of 1.2% YoY to | 322 crore while the seed business remained at | 24 crore (+4.3% YoY). Higher other expenses due to one-time Covid-19 related charges along with forex MTM impacted EBITDA, which came in at a loss of | 10 crore against...

Rallis India Ltd mainly deals in agri business & has emerged as one of the leaders in the...

The company recently revamped its distribution policy for the domestic market, which we believe would aid the company to achieve higher growth from the domestic market, going ahead. Revenue from India was up 35% during Q3FY20, largely driven by a late Kharif and better Rabi season. Apart from this, new product launches have also helped higher growth during the quarter. Going ahead, the management expects to introduce two new molecules every year along with more focus towards Rabi crop portfolio, diversifying the revenue stream, to a certain extent in the years to come....

The management reframed distribution policy last quarter, which we believe has aided the company to post better domestic growth during this quarter. Apart from this, the company has been planning to launch five products this year of which it has already got registration of two products. This will be launched during this season. Furthermore, progress of monsoon is expected to drive Q2FY20 sales for domestic market. The company has been planning to enter a few Rabi crops seed, which we expect to diversify revenue of the company in the long run....

New capacity to fuel growth in international market for Rallis Rallis has been expanding its capacity in Metribuzin, which is considered one of the major revenue contributors in the company's international market. The management highlighted that dicamba and glyphosate have some resistance issue, which translates into better volume growth outlook for Rallis since it holds 12% global Metribuzin market share. Further, the CRAMS business has also been witnessing decent growth, which can aid overall growth in the years to come....

ICICI Securities Ltd | Retail Equity Research Rallis India reported a subdued Q3FY19 performance. Consolidated revenues in Q3FY19 were at | 417.4 crore, up 7.0% YoY. It was largely realisation led growth with minimal volume growth Standalone revenues in Q3FY19 were at | 388.2 crore, up 8.7% YoY. Revenues of subsidiaries (Metahelix, etc.) in the seasonally lean quarter, were at | 29.1 crore, down 11.5% YoY Consolidated EBITDA in Q3FY19 came in at | 27.7 crore with...

We maintain BUY with a TP of Rs. 227 (18x Dec-20EPS) Rallis India reported Q3FY19 sales of Rs. 4.17bn growing at a rate of 7.0% YoY. EBITDA and APAT de-grew by 9.4% and 27.0% YoY to Rs 340mn and Rs 183mn respectively. Margins continue to be under pressure (Gross margin/EBITDA margin contraction of 257/299 bps YoY) on account of persistent increase in price of imported technicals.

Consolidated revenue grew by 7% yoy to Rs4.1bn, mainly driven by value growth. During the quarter, domestic business largely remained flat while the growth was fostered by international markets, primarily by the US, Europe, and Brazil. EBITDA margin (Consol.) contracted by 310 bps yoy to 6.6% due to several one-offs during the quarter: 1) sales return of Rs49mn; 2) provision of Rs22.4mn for debtors; 3) Rs14.3mn hit on the CRAMS (CPA business); and 4) IT-related cost of Rs30mn. of new molecules to gain market share within India and phase-wise capex for new product development and backward integration to create leadership in global market looks positive....

Rallis India reported healthy performance in Q2FY19. Total consolidated revenues in Q2FY19 stood at | 653.8 crore, up 11.2% YoY. Standalone revenues in Q2FY19 were at | 613.2 crore, up 11.8% YoY. Revenues of subsidiaries (Metahelix, etc.) in the seasonally lean quarter, stood at | 40.6 crore, up 3.1% YoY Consolidated EBITDA in Q2FY19 came in at | 123.4 crore with corresponding EBITDA margins at 18.9% (down 200 bps YoY) Consolidated reported PAT in Q2FY19 came in at | 85.1 crore, up...

We maintain BUY with a revised TP of Rs 220/sh (18x Sept'20 EPS). Rallis India reported a decent 2Q result, Sales/EBITDA/PAT grew by 11.2/0.7/10.1% YoY to Rs 6.53bn/Rs 1.23bn/Rs 852mn respectively. Gross margins expanded by 209bps YoY to 41.9% on account of liquidation of cheaper RM inventory from 1QFY19 entailing into gross margin expansion. Below normal SW monsoon (9% below LPA), commodity prices lower than MSPs, persistent raw material inflation in the near term are expected to take a toll on domestic crop protection companies.

We maintain BUY with a TP of Rs 271/sh (23x FY20E EPS). Rallis India reported strong results for 1QFY19. Consolidated revenues stood at Rs 5.73bn (+29.7% YoY), the performance was largely driven by strong volume growth and marginal price hike. As the seeds business is largely Kharif focused, subsidiary revenues (Metahelix) grew by 11.3% YoY to Rs 2.20bn.

ICICI Securities Ltd | Retail Equity Research Rallis India reported a healthy performance in Q1FY19 Consolidated revenues in Q1FY19 were at | 573.1 crore, up 28.6% YoY. Standalone revenues in Q1FY19 were at | 352.4 crore, up 42.5% YoY. Revenues of subsidiaries (Metahelix) in the seasonally important quarter i.e. Q1FY19 were at | 220.7 crore, up 11.4% YoY Consolidated EBITDA in Q1FY19 came in at | 83.1 crore with corresponding EBITDA margins at 14.5% (down 110 bps YoY). In the...

We maintain BUY with a TP of Rs288/sh (23xMarch FY20EEPS). Rallis India reported disappointing revenues and earnings for 4QFY18. Consolidated revenues stood at Rs 3.71bn (+6.4% YoY). The company's performance was subdued as there was no price hike and volume growth was low. As the seeds business is largely Kharif focused, subsidiary revenues were lackluster at Rs 220mn (+4.2% YoY).

South West Monsoon, which accounts for ~70% of annual rainfall domestically, has been forecast to be normal in nature (IMD at 97% of LPA & Skymet at 100% of LPA). Normal monsoon is likely to result in an increase in food grain production. This coupled with government directive to ensure minimum support price (MSP) at 1.5x the cost of production for key crops domestically and a wider e-NAM network is likely to result in healthy farm income. It is positive for all agri inputs, including Rallis. On a consolidated basis, Rallis realizes ~55% of its yearly...

Consolidated revenue at Rs3.7bn (+6% yoy) was in line with estimate. EBITDA stood at Rs336mn (-20% yoy). Gross margins improved by 130bps yoy to 45.6% while EBITDA margins contracted by 300bps yoy to 9.1%. Improvement in consolidated gross margins was driven by better performance of Metahelix. Standalone gross margins contracted by 110bps yoy to 42.8% due to shift in the product mix and heightened competition amid weak demand. turns from the first year itself with healthy margins (20%+). The company is confident of launching 12 new molecules in the next 5 years (2-3 molecules each year)....