Insecticides India Posts Another Disappointing Quarter: Prabhudas Lilladher
A farmer sprays fungicide onto a field of rice in Indonesia. (Photographer Dimas Ardian/Bloomberg)

Insecticides India Posts Another Disappointing Quarter: Prabhudas Lilladher

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

Prabhudas Lilladher Report

Insecticides India Ltd. reported yet another quarter with subdued performance.

Despite healthy topline growth of 14%, gross margins contracted by sharp 490 basis points YoY (regardless of a weak base) due to inventory liquidation of Nuvan (banned from January 01, 2021).

The management is hopeful of business turnaround in the ensuing quarters driven by-

  1. its pipeline of new launches
  2. commencement of new capacities and
  3. backward integration projects.

We increase our topline estimates by 5% for each FY21-23 but reduce our Ebitda/adjusted profit after tax estimates by 15%/16%, 7%/8%, 1%/1% to factor in weakening margin profile of the company.

Click on the attachment to read the full report:

Prabhudas Lilladher Insecticides India Q3FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.