{"id":86,"date":"2019-08-05T11:57:10","date_gmt":"2019-08-05T11:57:10","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=86"},"modified":"2019-10-03T11:42:54","modified_gmt":"2019-10-03T11:42:54","slug":"rallis-revamped-channel-policies-and-improved-price-realisation-drives-performance","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/08\/05\/rallis-revamped-channel-policies-and-improved-price-realisation-drives-performance\/","title":{"rendered":"Rallis: Revamped channel policies and improved price realisation drives performance"},"content":{"rendered":"\n<p><em>Dated: 19th July 2019<\/em><\/p>\n\n\n\n<p>1QFY20 Results<\/p>\n\n\n\n<ul><li>Rallis reported a 9% YoY increase in consolidated revenues at Rs 6,232 mn. The Standalone revenues of Rs 3,631 mn (+3% YoY) were driven by 12% YoY growth in exports. The seeds business (Metahelix subsidiary) revenues grew by 18% YoY to Rs 2,601 mn. <\/li><li>EBITDA margins improved by 70bps YoY to 15.2%. Increase in raw material costs was offset by savings in other expenses. EBITDA was up 14% YoY to Rs 948 mn. <\/li><li>The Effective tax rate for 1QFY20 was lower at 22% v\/s 28% in 1QFY19. The Consolidated PAT grew by 24% YoY to Rs 678 mn v\/s Rs 547 mn in 1QFY19. \u00a0<\/li><\/ul>\n\n\n\n<p>Management Commentary<\/p>\n\n\n\n<ul><li>Despite the delayed monsoon and impacted sowings; the revamped channel policies and improved price realisation led to a satisfactory performance both the agrochemicals and seeds segment in the domestic market.<\/li><li>International Crop Protection chemical business at Rs 1,416 mn grew by 12% YoY and contributed 39% of the standalone revenues.<\/li><li>The effective tax rate was lower during the quarter due to the classification of a part of the business as agriculture income for taxation purpose.<\/li><li>Other expenses declined due to the pushover of the product launch expenses into 2QFY20.<\/li><li>The Capex plans for FY20E stand at ~Rs 2,000 mn including backward integration for 2 of the molecules.<\/li><li>The Board of Directors of the Company had approved the Scheme of Amalgamation of Metahelix life Sciences Limited (a wholly-owned subsidiary) with the Company.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: market screener website)<\/p>\n\n\n\n<ul><li>The closing price of Rallis is Rs 154\/- on 19-Jul-19.\nIt traded at 16x \/ 13x the consensus EPS for FY 20E \/ FY 21E EPS of Rs 9.6 \/ 11.5\nrespectively. <\/li><li>Consensus target price of Rs 180\/- implies a PE of 16x\non FY21E EPS of Rs 11.5.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Dated: 19th July 2019 1QFY20 Results Rallis reported a 9% YoY increase in consolidated revenues at Rs 6,232 mn. The Standalone revenues of Rs 3,631 mn (+3% YoY) were driven by 12% YoY growth in exports. The seeds business (Metahelix subsidiary) revenues grew by 18% YoY to Rs 2,601 mn. EBITDA margins improved by 70bps [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[91,92],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/86"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=86"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/86\/revisions"}],"predecessor-version":[{"id":87,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/86\/revisions\/87"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=86"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=86"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=86"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}