Sumitomo Chemicals - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 314, MCap: Rs. 15651 crore)

Numbers are above our estimates across all parameters.

Q4FY21 Earnings Summary

- Sumitomo Chemical reported topline growth of 20% YoY to Rs. 534.3 crore against our expectations of Rs. 500.8 crore. The revenue from agrochemical segment was up by 19.6% YoY to Rs. 478.1 crore, while the same from other segment remained at Rs. 56.2 crore (+19.7% YoY). We believe since the Rabi season was comparatively better this year and thus better volume growth along with rise in the realisation owing to higher RMAT supported the growth for the quarter

- OPM for the quarter expanded by 408bps YoY to 13.4% leading to EBITDA growth of 72% YoY to Rs. 71.3 crore as against our estimates of Rs. 67.5 crore. The EBITDA from agrochemical business remained at Rs. 65.7 crore (+88% YoY), while the same from other segments was Rs. 5.2 crore (+121% YoY)

- Lower taxes (12% v/s 28% in Q4FY20) boosted bottom-line growth, which was up by 136% YoY to Rs. 54.1 crore against our estimates of Rs. 44.3 crore

- The company generated CFO to the tune of Rs. 425 crore (~16% of sales) in FY21 as against Rs. 221 crore (~9% of sales) last year. The cash & investment as on date stood at Rs. 532 crore against Rs. 179 crore last year

We would be coming out with a detailed report soon.

Source : Equity Bulls

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