Rallis India Ltd - Q3FY21 First Cut - ICICI Direct

(CMP: Rs. 290, Mcap: Rs. 5660 crore)

Top-line and EBITDA mostly in line with estimates, however bottom-line beat due to lower than anticipated depreciation

Q3FY21 Earnings Summary

- The revenue for the quarter was up by 6.9% YoY to Rs. 570.5 crore against our estimates of Rs. 579.8 crore. As the segmental details are still awaited, but we expect there has been clear demand revival in the international business for key molecules, which should have supported the growth for the quarter.

- OPM for the quarter remained at 10.5% almost in line with our estimates, leading to EBITDA growth of 7.9% YoY to Rs. 60.1 crore against our estimates of Rs. 60.9 crore. There has been sustainability in the gross margins, which depicts that inventory situation of metribuzin seems getting normal and thereby the realisations. Along with that, we believe positive delta for price increase of some molecules should also have supported gross margins to a certain extent for the quarter.

- Adjusting the exceptional item to the tune of Rs. 6.1 crore related to profit on sale of flats, PAT was up by 7.9% YoY to Rs. 41.1 crore against our estimates of Rs. 37.7 crore. Beat is on account lower than anticipated depreciation.

We would be coming out with a detailed report soon.

Shares of RALLIS INDIA LTD. was last trading in BSE at Rs.289.2 as compared to the previous close of Rs. 291.25. The total number of shares traded during the day was 137973 in over 4763 trades.

The stock hit an intraday high of Rs. 299.25 and intraday low of 280. The net turnover during the day was Rs. 39983498.

Source : Equity Bulls

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