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ICICI Direct: Sumitomo Chemical India - Margin Expansion Remains Key Surprise For Quarter

ICICI Direct: Sumitomo Chemical India- Margin Expansion Remains Key Surprise For Quarter

A farm worker sprays cotton plants with pesticides on the farm of Jarnail Singh in Jajjal village, Punjab, India (Photographer Prashanth Vishwanathan/Bloomberg)
A farm worker sprays cotton plants with pesticides on the farm of Jarnail Singh in Jajjal village, Punjab, India (Photographer Prashanth Vishwanathan/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Sumitomo Chemicals India Ltd. reported revenue growth of 3.6% YoY to Rs 647.7 crore, largely impacted by lockdown leading to a fall in production volumes and thereby sales.

The agrochemical segment posted growth of 5.2% YoY to Rs 615.3 crore while non-agrochemical segment fell 20% YoY to Rs 32.4 crore.

Better gross margins (up 224 basis points YoY) due to a change in product mix and hike in few crop protection chemical prices along with lower other cost resulted into operating profit margin expansion by 477 basis points YoY to 18.3% leading to Ebitda growth of 40% YoY to Rs 119 crore.

Profit after tax remained at Rs 79.4 crore (up 47% YoY), aided by higher other income and a better operational performance.

Click on the attachment to read the full report:

ICICI Direct Sumitomo Chemicals Q1FY21 Result Update.pdf

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