Icon times
Rallis India Q1 FY22 Results & Conference Call Highlights

Rallis India Q1 FY22 Results & Conference Call Highlights

Published on 23 July 2021 Views 55 Comments 0

Financial Highlights: Rallis Share Price

  • Sales have grown at a decent rate YoY from 663 crores to 741 crores @12% YOY

  • EBITDA has declined from 128 crores to 122 crores @5% mainly due to one off actuarial valuation, freight cost, leave encashment & gratuity payments

  • EBITDA & PAT margin have sequentially declined 3%. YOY

  • EBITDA margin has come down from 19% to 16% while PAT has come down from 14% to 11% YOY.
  • Margins have been impacted by pricing pressures as well.
  • PAT also has declined from 92 crores to 82 crores declining by 11% YOY. PAT has also been impacted due to lower yield on market investments & shortfall in export incentives

Segment Revenue: Rallis Annual Report

  • Company has 2 divisions: Crop Care & Seeds. Crop Care includes Crop Protection & Crop Nutrition Revenue Mix Crop Care (64%) & Seeds (36%)

  • Crop Care grew by 17.4% YOY by topline on a cumulative basis from 401 crore to 471 crores

  • 31% revenue growth on YoY basis in the domestic Crop Care business

  • International business was lower by 8% vs Q1 21 due to high freight rates & challenges in shipping.

  • EBITDA has also declined from 45 crores to 38 crores. EBITDA Margin stands @8% from 11% YOY

  • PAT stood @23 crores from 30 crores YOY. PAT margin also declined 2% from 7% to 5%

Seeds Division: Rallis Share Analysis

  • 3.1% growth in topline from 261 crores to 269 crores in Q1 FY22 supported by volume Growth in Paddy

  • EBITDA showed a meagre 1% growth YOY from 82 crores to 83 crores. EBITDA margin stands flat @31%

  • PAT also stands flat @60 crores YOY. PAT margin declined by 1% YOY

  • Growth impacted due to increased sale of illegal HT cotton in the market, which are rising slowly

New Products Launched

  • DF - Launched new 9(3) formulation in Q1 – Pepe (Pendimethalin + Penoxsulam) targeted as a herbicide in Rice; 9(4) formulation Preet Plus (Pretilachlor) targeted as a Rice herbicide and Kaushal (Propineb) targeted as a fungicide in F&V segment

  • Plus (Pretilachlor) targeted as a Rice herbicide and Kaushal (Propineb) targeted as a fungicide in F&V segment

  • PGN - Launched Aquafert Foliar - Apple

  • Seeds – Launched Paddy (medium maturity) and five products in Cotton segment

  • IBD - Four new registrations in Africa and two in SE Asia

Business Highlights: Rallis India Stock Analysis

  • Company is planning to focus on building rabi portfolio in order to remove the cyclicity of the business

  • Company has resorted to distance marketing resulting in better connect with farmers

  • Innovation Turnover index currently more than 6%

  • Company generally has a better margin in seeds business rather than crop care business which has also affected margins as per the management

  • A business team & an R&D team has been set up in order to increase company focus on contract manufacturing

  • Rallis India Technical Analysis recognizes that ITI has declined in recent years & company is planning to cater this in future

  • Company has more than doubled the capacity of Metribuzin as compared to FY 2020 but there is softness in demand for the same currently.

  • Pendimethalin Capacity increased more than 25% from FY 2021 beginning & more than 90% capacity utilized

  • Hexaconazole more than 70% capacity in FY 2021 beginning with capacity utilization of around 85-90%

  • Company plans to launch 2 products this year in biologicals

Covid 19 Impact

  • Covid 19 has badly impacted the Capex projects of the company along with the business leading to delay of 2-3 months

  • Formulation Plant at Dahej, CZ – Phase 1 Expected now to be completed by Q2 FY22

  • Rallis India Fundamental Analysis is continuing up stocking of raw materials to avert production disruptions due to potential supply chain issues and sharp price hike.

Management Update: Rallis India Slot Analysis

  • The board of Rallis India dividend has appointed Subhra Gourisaria as the chief financial officer (CFO) and Key Managerial Personnel (KMP) of the company from 15 June 2021 on the superannuation of Ashish Mehta Rallis, the current CFO, from 14 June 2021

Note: The company is majorly into Seasonal Business, therefore QoQ figures don’t hold much relevance.

Get more useful articles on various stocks with appropriate stock ratings only on Invest Yadnya. We offer numerous resources for a detailed review on Rallis India status. Check out more stock articles, for a thorough Invest Yadnya review.

Attachments
File Name
private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs 7499/Year.

Please login to view this free article.

This blog is available only for logged in users, please register and get access to view this article.

LATEST UPDATE

premium Premium
free Free
Read More

REPORTS


Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
16:10
Chat with InvestYadnya