Rallis India - Margins To Bottom Out In A Quarter: Prabhudas Lilladher
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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.
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