Rallis India slumps after reporting weak Q3 results

Rallis India slumped 7.16% to Rs 146.55 at 11:00 IST on BSE after the company said consolidated net profit fell 19.92% to Rs 20.41 crore on 19.85% decline in total income to Rs 311.11 crore in Q3 December 2015 over Q3 December 2014.

The result was announced by the company after market hours yesterday, 18 January 2016.

Meanwhile, the S&P BSE Sensex was up 203.48 points or 0.84% to 24,391.85.

On BSE, so far 25,645 shares were traded in the counter as against average daily volume of 1.75 lakh shares in the past one quarter. The stock hit a high of Rs 155 in intraday trade. The stock hit a low of Rs 145 so far during the day, which is also a 52-week low for the stock. 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 18 January 2016, falling 10.11% compared with 5.22% fall in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 26.62% as against Sensex's 11.12% decline.

The mid-cap company has equity capital of Rs 19.45 crore. Face value per share is Re 1.

Rallis India's EBITDA (earnings before interest, taxes, depreciation and amortization) margin dropped to 11.5% in Q3 December 2015 compared with 13.1% in Q3 December 2014.

Commenting on Q3 performance, Mr. V Shankar, Managing Director and CEO of Rallis India said that drop in usage of crop protection solutions due to difficult 2015 year for farmers and farming impacted by climatic turbulence, muted farmer sentiments in Q3 and deficiency in North East monsoon and lower levels of reservoirs across key rabi crop growing states impacted sales of key Rallis brands for paddy and pulses. He added that international business continued to face pressure in the major markets of Brazil and USA. Lower crop commodity prices and higher inventories affected consumption there. The company looks forward to market picking up In the first half of year ending 31 March 2017 (FY 2017), he added.

Rallis India produces crop protection chemicals.

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