Rallis India Concall was today at 11:00 pm
Here are the key highlights of the Conference call π
@AdityaD_Shah
Here are the key highlights of the Conference call π
@AdityaD_Shah
Updates on Industry:
β’ Ravi season is expected to be good.
β’ Agriculture sector is expected to deliver good growth in the coming months due to good rainfall
β’ Pesticides and Insecticides use was less in the coming quarter.
β’ Ravi season is expected to be good.
β’ Agriculture sector is expected to deliver good growth in the coming months due to good rainfall
β’ Pesticides and Insecticides use was less in the coming quarter.
β’ 3 key products show good growth
β’ Prioritizing cash flow result to increase in cash flow
β’ Main focus remain to bring new and innovative product
New product:
β’ Launched 1 formulation product, and gradual pick up in sales
β’ 2 new crop nutrition product
β’ Prioritizing cash flow result to increase in cash flow
β’ Main focus remain to bring new and innovative product
New product:
β’ Launched 1 formulation product, and gradual pick up in sales
β’ 2 new crop nutrition product
International business
β’ Decline in export business, even though volume increased
β’ CRAM business remain under pressure
β’ Decline in export business, even though volume increased
β’ CRAM business remain under pressure
CAPEX:
β’ Formulation CAPEX is delayed due to COVID and
β’ Multiproduct plant in the next pipe line is in line for expansion
Both are in Dahej
β’Major CAPEX will be happened now in mutliproduct plants and focus remain on the off patented AI
β’ Formulation CAPEX is delayed due to COVID and
β’ Multiproduct plant in the next pipe line is in line for expansion
Both are in Dahej
β’Major CAPEX will be happened now in mutliproduct plants and focus remain on the off patented AI
CAPEX (2):
β’ 70 crores was accepted yesterday for CAPEX and delay for CAPEX is expected to be 2-3 months.
β’ Phase 1 expected to completed till march 21
β’ Capacity at Ankleshwar has been revamped. Most of the products has been revamped. Main focus remained on the key products
β’ 70 crores was accepted yesterday for CAPEX and delay for CAPEX is expected to be 2-3 months.
β’ Phase 1 expected to completed till march 21
β’ Capacity at Ankleshwar has been revamped. Most of the products has been revamped. Main focus remained on the key products
Plant of Metribuzin: On the recent expansion which was commissioned, sales are not increased as expected. Some of the order got delayed. Expected to get back to normal level in 2 quarter
Products:
β’ Revenue from crop care: Growth by 8% (Volume growth 10% and bit of downward pressure in pricing)
β’ Seed division crop line was at 29%. (Largely driven by volume couple by price realization)
β’ Working Capital Days improved to 65 days which was 105 days previously
β’ Revenue from crop care: Growth by 8% (Volume growth 10% and bit of downward pressure in pricing)
β’ Seed division crop line was at 29%. (Largely driven by volume couple by price realization)
β’ Working Capital Days improved to 65 days which was 105 days previously
Inventory levels: Expected in the coming quarter to be at normal levels
β’ Sowing areas has increased 5%
β’ Crop nutrition unexpectedly has delivered good in the quarter
Agri products:
β’ Maize has done well for the business.
β’ Vegetable business has also done pretty well
β’ Sowing areas has increased 5%
β’ Crop nutrition unexpectedly has delivered good in the quarter
Agri products:
β’ Maize has done well for the business.
β’ Vegetable business has also done pretty well
β’ Crop Protection has been hampered in the quarter, however major saviors is the old products
β’ Seed Division: Certain product has been hampered. Cotton has been in little consolidation. Larger players in cotton expanded and grabbed the market. Company expect to deliver 100 cr
β’ Seed Division: Certain product has been hampered. Cotton has been in little consolidation. Larger players in cotton expanded and grabbed the market. Company expect to deliver 100 cr
Commercialization of products
β’ With the expansion plans near to timeline, new products will be launched gradually. Registration of products will take further time as per countries. Country like Vietnam and Sri Lanka has lower period of time, while in India it take certain time.
β’ With the expansion plans near to timeline, new products will be launched gradually. Registration of products will take further time as per countries. Country like Vietnam and Sri Lanka has lower period of time, while in India it take certain time.
CAPEX of 800 crores:
β’ There has been certain consideration on the products to be expanded, however expected revenue target remained the same, after taking consideration. Product mix has been changed a bit, and there will be more as this is 5 year plan.
β’ There has been certain consideration on the products to be expanded, however expected revenue target remained the same, after taking consideration. Product mix has been changed a bit, and there will be more as this is 5 year plan.
β’ Out of 800 cr, 100 crores has been already spend 200-300 will be pend in coming year.
β’ Considering of PLI scheme is work in progress.
β’ While there has been little push back from Atma Nirbhar scheme as well and company is in line with expansion
β’ Considering of PLI scheme is work in progress.
β’ While there has been little push back from Atma Nirbhar scheme as well and company is in line with expansion
China+: There has been increase in inquiry however, all these inquiry is on talk. Nothing much has been put on table
China move on low pricing: There has been impact on price realization, however not all the products have been impacted. Certain API products have been impacted
China move on low pricing: There has been impact on price realization, however not all the products have been impacted. Certain API products have been impacted
β’ OPEX: Saving on travel cost, which is consumed by technology usage. No permanent reduction, as this will technology will be used more.
β’ Recent stoppage of 27 products: There has been no stoppage on the export of the product, and government has just delivered just the draft.
β’ Recent stoppage of 27 products: There has been no stoppage on the export of the product, and government has just delivered just the draft.
Conclusion:
β’ There is some challenges in Seed division.
β’ International products may see a uptick and the products will be start commanding demand.
β’ These can be muted growth in the coming quarter, however Ravi season is expected to be good due to good rain water.
β’ There is some challenges in Seed division.
β’ International products may see a uptick and the products will be start commanding demand.
β’ These can be muted growth in the coming quarter, however Ravi season is expected to be good due to good rain water.
β’ β’ β’
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