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
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.
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