Rallis India hits 52-week low on weak Q3 results

The stock down 5% to Rs 149 after reported 20% YoY decline in net profit at Rs 20 crore in December quarter.

Rallis India slipped to its 52-week low level at Rs 149, down 5% on the NSE after the company reported 20% year on year (Y-o-Y) decline in consolidated net profit at Rs 20 crore for the third quarter ended December 2015 (Q3FY16), because of lower revenues. The agrochemicals company had profit of Rs 25 crore in year ago quarter.

Revenues decreased 2% at Rs 306 crore on Y-o-Y basis, Rallis India said in a release.

EBITDA (earnings before interest, taxes, depreciation, and amortization) margins declined to 11.5% from 13.1% in previous year quarter.

“The quarter saw muted farmers sentiments due to reduced Kharif yields and lower prices of key crops. The drop in usage of crop protection solutions has impacted sales of some key Rallis brands for paddy and pulses,” Mr V Shankar, managing director and chief executive office, Rallis India said.

The company looks forward to market picking up in the first half of 2016-17, he added.

In past three-months, the stock declined 30% as compared to 12% fall in the Nifty 50 index. Till 10:04 a.m. a combined 109,166 shares changed hands on the counter on the NSE and BSE.