Rallis India - Margins To Bottom Out In A Quarter: Prabhudas Lilladher
A farmer sprays fungicide in a field of rice on farmland near Sirsa, Haryana. (Photographer Prashanth Vishwanathan/Bloomberg)

Rallis India - Margins To Bottom Out In A 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

Rallis India Ltd.’s Q4 FY21 result outperformance vis-a-vis our estimates was driven by higher than anticipated international business revenue (up 73% YoY).

Deteriorating sales mix in favour of Metribuzin led to 210 basis points contraction in blended gross margins @ 41.4% (our estimate 43%).

Excluding off-Metribuzin, international business is on a firm footing with volume growth in all molecules.

Domestic business performance is also on expected lines with 14% revenue growth.

We expect margin pressure to peak out in a quarter or so, as low Metribuzin price will be in their base Q2 FY22 onwards.

Click on the attachment to read the full report:

Prabhudas Lilladher Rallis India Q4FY21 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.