RALLIS INDIA (IN), a company active in the Speciality Chemicals industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis d...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Q3FY20 result highlights Cons. revenues increased by 28% yoy to Rs5.4bn (much above our est: Rs4.7bn) driven by strong 35% yoy growth in the domestic pesticides business and 24% yoy. in exports Gross margins declined by 138bps yoy to 38.1% , however improved 200bps qoq (in line with est) with softening of RM prices EBITDA margins improved substantially by 383bps to 10.4% above our est of 8.3% driven by operating leverage given strong revenue beat. EBITDA grew by 102% yoy to Rs557m (above e...
The last few years have seen Rallis lose significant ground versus most peers across domestic and exports segments. Factors that led to Rallis’ lacklustre growth include tight credit policy in the domestic market, conservative capex approach in exports, raw material pressures, etc. Muted profitability over FY15-19 led Rallis to undertake multitude of strategic initiatives – the company effected a change at the senior management level (since April 2019) and also signalled a marked step up in cape...
Q2FY20 result highlights Cons. revenues increased by 14.5% yoy to Rs7.48bn (above our est: Rs6.86bn) largely driven by the international business registering 31%yoy growth on strong demand for existing molecules (metribuzin and acephate). Domestic pesticides and seeds (Metahelix) business grew by 6% yoy and 51% yoy respectively on a low base Gross margins declined sharply by 584bps to 36% vs 42% in Q2FY19 (est :40%) on rise in price of key raw materials imported from China and inability of t...
Q1FY20 result highlights Cons. revenues increased by 8.7% yoy to Rs6.23bn (est :Rs6.24bn) largely driven by the international business registering 12%yoy growth on strong demand for existing molecules (metribuzin and acephate) .Growth in the domestic pesticides business remained soft owing to delayed monsoons and weak kharif sowing. Seed business (seasonally strong qtr) registered 2.6% growth driven Gross margins declined by 147bps to 38.1% on cost pressures and unavailability of key raw mat...
Q4FY19 result highlights Cons. revenues declined by 8.5% yoy to Rs3.4bn (est :Rs3.9bn) owing to subdued performance of the domestic pesticide business and weak rabi season. Revenues from the domestic pesticides business declined by 20% yoy largely due to fall in volumes , while the international business registered 10% yoy growth in Q4FY19 Gross margins declined by 240bps to 43.2% on higher cost of raw material imported from china. Cons. EBITDA registered a sharp fall of 79.8% yoy to Rs6...
Q3FY19 result highlights Rallis reported revenue growth in line with our expectation, however EBITDA was below our estimates. Cons revenues grew by 7% yoy to Rs4.17bn (est: Rs4.2bn) led by revised dealer incentive structure which aided growth in domestic pesticides business coupled with improved realisation in the export business. Gross margins declined by 260bps due to Rallis's inability to pass on the increase in cost of raw materials imported from China owing to weak rabi season couple...
Q2FY19 result highlights Rallis reported consolidated revenue growth of 11.2%yoy to Rs6.53bn (est.:Rs6.64bn) led by higher realisations in the domestic pesticides business and traction in export business. Growth in seed business remained soft at 6% yoy to ~Rs406m Gross margins declined by 90bps to 42% due to fluctuation in raw material prices (higher crude oil price and plant shut down in China). Despite stable employee costs, higher other expenses (up 24% yoy) owing to forex loss led to 191...
Q1FY19 result highlights Rallis reported revenue growth above our expectation, however PAT was in-line with our estimates. Rallis reported consolidated revenue growth of 29.7%yoy to Rs5.7bn (est: Rs4.9bn) led by strong volume growth in the domestic pesticides business (on a low base) and healthy traction in export business. Growth in seed business remained soft at ~11.3% yoy to Rs2.2bn Sharp rise in raw material prices (plant shut down in China) led to 654bps decline in gross margins to 39....
We attended the analyst meet of Rallis India. The management remained upbeat on the prospects all three businesses (domestic pesticides, exports and seeds). Key takeaways:- Volume growth momentum to continue: Management expects healthy volume growth in FY19E for both the domestic as well as international business. New product launches, easing of credit terms to dealers and strengthening distribution reach would lead to market share gains for the domestic business. The export business will be dr...
Q4FY18 result highlights Rallis reported consolidated revenue growth of 6.5%yoy to Rs3.7bn (est:Rs4bn) led by healthy traction in the domestic pesticides as well as export business, while growth in seed business was soft at 7.6%yoy to Rs220m on a low base. Despite 133bps improvement in gross margins to 46%, higher employee costs (up 14.9% yoy) and higher other expenses(up 23%yoy) led to 19.2%yoy decline in consolidated EBITDA to Rs336m (est:Rs539m) .EBITDA margins declined by 290bps to 9.1...
Rallis India’s (Rallis) new product launches in domestic pesticides, contract manufacturing (CRAMS) sign-ups in exports business and strengthening presence in seeds business have helped reverse its muted growth trajectory FY17 onwards. We estimate healthy 12% revenue CAGR in domestic pesticides and large-scale opportunities to drive exports and seeds businesses at 14.2% and 15% CAGR, respectively, over FY18-20E. We estimate consolidated revenue and PAT CAGR of 13.4% and 19.6%, respectively, with...
Q3FY18 result highlights Rallis reported revenue growth ahead of our expectation, however EBITDA and PAT was below our expectation. Standalone: Rallis’ standalone revenue increased by 17.6% yoy to Rs3.57bn (est: Rs3.46bn) led by healthy traction in the domestic pesticides as well as export business. Gross margins declined by 433bps to 42% due to higher raw material costs, while EBITDA margins declined by 287bps despite stable fixed overheads and employee costs. EBITDA declined by 5.2% to Rs...
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