Rallis India Q2 Review - Margin Pressure To Continue: Dolat Capital
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Dolat Capital Report
Rallis India Ltd. reported modest revenue growth of 0.4% YoY to Rs 7.28 billion (our estimate: Rs 7.37 billion) impacted by erratic rainfalls and higher sales returns in its seeds business.
Sales growth in the domestic business came in at 3% YoY (volume growth 2.4%; realisation gain 0.6%) while the international business saw a 22% YoY growth led by strong demand for Pendimethalin and Hexaconazole.
Rallis India's Ebitda de-grew by 24.6% YoY to Rs 880 million impacted by higher input costs coupled with higher employee costs and other expenses which grew by 13.8% and 8.4% YoY respectively.
Profit after tax declined by 31.9% YoY to Rs 565 million impacted by a fall in other income of 42.6% YoY to Rs 75 million and a higher tax rate of 26.2% versus 24.4% in Q2 FY21.
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