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Rallis India Q2 Review - Rising Input Cost Likely To Impact Margins: ICICI Direct

Rallis India Q2 Review - Rising Input Cost Likely To Impact Margins: ICICI Direct

<div class="paragraphs"><p>A farmer sprays rice with pesticide in a rice field. (Photographer: Tomohiro Ohsumi/Bloomberg).</p></div>
A farmer sprays rice with pesticide in a rice field. (Photographer: Tomohiro Ohsumi/Bloomberg).

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.

ICICI Direct Report

Rallis India Ltd.'s numbers were below estimates across all parameters. Margins were impacted owing to higher input cost.

Revenues remained flat at Rs 727.8 crore, impacted by a dent in the seeds business and lower growth from the domestic crop care business.

Gross margins declined 190 basis points YoY to ~36.2% while Ebitda margin contracted 400 bps YoY to 12.1%, due to unabsorbed fixed overheads such as employee and partly other expenses.

Rallis India's Ebitda was down 24.6% YoY to Rs 88 crore. Profit after tax fell 32% YoY to Rs 56.5 crore owing to lower-than-expected operational performance.

Click on the attachment to read the full report:

ICICI Direct Rallis India Q2FY22 Result Udpate.pdf

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