Rallis India declines after reporting weak Q2 results

Rallis India declined 2.51% to Rs 205.75 at 9:55 IST on BSE after consolidated net profit fell 21.91% to Rs 57 crore on 21.38% decline in net sales to Rs 500 crore in Q2 September 2015 over Q2 September 2014.

The result was announced after market hours on Friday, 23 October 2015.

Meanwhile, the S&P BSE Sensex was up 54.18 points or 0.20% to 27,524.99.

On BSE, so far 13,641 shares were traded in the counter as against average daily volume of 51,362 shares in the past one quarter.

The stock hit a high of Rs 208.20 and a low of Rs 201.20 so far during the day. The stock hit a 52-week low of Rs 200 on 10 September 2015. The stock hit a record high of Rs 298.50 on 3 March 2015.

The stock had underperformed the market over the past one month till 23 October 2015, falling 2.38% compared with 6.38% rise in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 16.45% as against Sensex's 3.17% decline.

The mid-cap company has equity capital of Rs 19.44 crore. Face value per share is Re 1.

Mr. V Shankar, Managing Director and CEO of Rallis India said that due to monsoon deficiency, the crop acreages growth and yields have been impacted. Coupled with lower netbacks for farmers, it has put enormous pressure for the industry, Shankar said. Current reservoir levels in Maharashtra & Southern states of India are low though showers received towards the end of September 2015 have increased overall sentiments for Q3 December 2015, Shankar said. He further said that the international business also faced pressure in the major markets of Brazil & USA. Brazil is reeling from its worst drought of over 80 years and currency devaluation impacting demand. In USA, lower crop commodity prices and higher inventory impacted consumption. The management looks forward to market picking up in the latter half of the current financial year.

Rallis India produces crop protection chemicals.

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