Insecticides India Posts Another Disappointing Quarter: Prabhudas Lilladher
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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-
- its pipeline of new launches
- commencement of new capacities and
- 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.
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