DAL reported above estimate Q4 numbers driven by strong 18% y-o-y revenue jump riding a strong rabi season

Dhanuka agritech limited (DAL) as reported numbers which are above estimate for forth quarter of financial year 2020. And 18% year on year revenue jump was recorded due to the strong rabi season. The profits came at a time in the global market is extremely uncertain due to the coronavirus cost covid-19 disease. It has impacted several industries. However, it is believed that the agricultural industry will gain benefits of a a great rabi crop and favourable monsoon season this year.

Keeping in consideration the fact that the management is is quite confident about a double digit revenue growth in the financial year 2021,DAL Dhanuka’s EBITDA margin is expected to to reach around 16.5%.

The company’s revenue rised 18% year on year backed by and impressive 19% volume growth. Launching of new products is one of the major growth indicators of the company full stop it has launched seven new products in the last one year and it is expecting to launch two more in the coming year. DAL This help the gross margin to rise 80 basis points year on year to 43% improving the ebitda 2 rupees 458 million.

The future expectations of the firm seem to possess a positive Outlook. Launching of new products as well as a good monsoon season is likely to backup the company’s growth in the coming year.