PL First Cut – Insecticides India 1QFY24

PL First Cut – Insecticides India 1QFY24 – Himanshu Binani – Research Analyst, Prabhudas Lilladher Pvt Ltd

Insecticides India 1QFY24 results: Weak results; In-Line with estimates

❇ Revenue grew by 14% YoY to Rs6.4bn, (PLe Rs6.0bn).

❇ Lower price realizations coupled with high cost inventory provision has resulted in gross margins contraction of 320bps YoY to 20.8%.

❇ EBITDA declined by 22% YoY to Rs456mn in-line with our estimates of Rs460mn. ❇️ Lower Gross margins has kept EBITDA margin depressed with margin contraction of 330bps YoY to INR 7.1%(PLe 7.7%)

❇ PBT came in at Rs395mn down 22% YoY.

❇ PAT declined by 24% YoY to Rs290mn in-line with our estimates of Rs284mn.