Q4FY21 Result Update - Sumitomo Chemicals - ICICI Direct

Sumitomo Chemicals reported topline growth of 20% YoY to Rs. 534.3 crore against our expectation of Rs. 500.8 crore. Revenue from the agrochemical segment was up 19.6% YoY to Rs. 478.1 crore while the same from other segment remained at Rs. 56.2 crore (up 19.7% YoY). Since the Rabi season was comparatively better this year, we believe better volume growth, along with rise in realisation owing to higher RMAT, supported growth for the quarter. OPM for the quarter expanded 408 bps YoY to 13.4% leading to EBITDA growth of 72% YoY to Rs. 71.3 crore against our estimate of Rs. 67.5 crore. EBITDA from agrochemical business remained at Rs. 65.7 crore (up 88% YoY) while the same from other segments was Rs. 5.2 crore (up 121% YoY). Lower taxes (12% vs. 28% in Q4FY20) boosted bottomline growth, which was up 136% YoY to Rs. 54.1 crore against our estimate of Rs. 44.3 crore.

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Source : Equity Bulls

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