Dhanuka Agritech Q2 Review - FY22 A Challenging Year; Maintain Caution: Centrum Broking
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Centrum Broking Report
Dhanuka Agritech Ltd.’s revenue/Ebitda/profit after tax declined 1/7.7/9.6% YoY in Q2 FY22 to Rs 4.4 billion/0.8 billion/0.6 billion, missing estimates of Rs 4.6 billion/0.9 billion/0.7 billion.
The decline comes on a strong base of Q2 FY21. Revenue grew 21% QoQ, but sharply higher gross margin (up 310 basis points QoQ) meant 34/30% QoQ growth in Ebitda/profit after tax.
With pressures on raw material costs and erratic monsoons in H1, overall prospects for FY22 remain muted.
The delay/unseasonal trends in monsoons in June-August hit growth in Q2 as well, and Dhanuka Agritech's management has turned cautious on prospects, lowering revenue/Ebitda margin guidance for FY22.
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