PL First Cut – Insecticides India 2QFY24
Prabhudas Lilladher Pvt Ltd
PL First Cut – Insecticides India 2QFY24 – Swarnendu Bhushan – Co – Head of Research, Prabhudas Lilladher Pvt Ltd
Insecticides India 2QFY24 results: Decent performance in challenging times
(CMP-Rs523; Mcap- Rs15.6bn; ACC; TP-Rs550)
❇ Revenue grew by 20% YoY to INR7.0bn, beat on our estimates of INR6.2bn.
❇ Lower price realizations coupled with high cost inventory provision has resulted in gross margins contraction of 180bps YoY to 24.9%(PLe 26.5%).
❇ EBITDA up by 20% YoY to INR819Mn better than our estimates of INR705mn. Lower GM has been offset by lower employee costs down by 170bps YoY to 8.3%, resulting into flat EBITDA margin YoY to 11.8% (PLe 11.4%) .
❇ PBT came in at INR 715mn (PLe 610mn) up 20% YoY.
❇ PAT up by 19% YoY to INR530mn better than our estimates of INR457mn.