Rallis India slides as Q1 PAT drops 24% YoY to Rs 48 crore

Rallis India slipped 4.78% to Rs 324.35 after the firm reported 23.81% decline in net profit to Rs 48 crore in Q1 FY25 as compared to Rs 63 crore in Q1 FY24.

The revenue rose marginally on YoY basis to Rs 783 crore in the first quarter of FY25. The crop care segment revenue grew 8% to Rs 561 crore while revenue of the seeds segment stood at Rs 222 crore, down 16% YoY in the quarter.

EBITDA declined by 13% YoY to Rs 96 crore in Q1 FY25, primarily due to challenges in margin in export front and inferior mix (lower growth in seeds).

Dr Gyanendra Shukla, managing director & CEO, Rallis India, said, The agrochemical Industry continues to face growth challenges due to muted price arising from oversupplies. Domestic demand is looking positive with monsoon arrival and pickup.

Crop care delivered strong volume led revenue growth of 8%. Seeds revenue was down by 16% vs PY largely due to supply constraints. Despite market challenges, concerted actions were taken to drive margins through better product mix and dynamic pricing. We are pleased with the progress of our new launch of Clasto in crop protection and Diggaz in cotton seeds. Water soluble fertilizers (WSF) plant was commissioned during the quarter to support the crop nutrition business.

We remain cautious about the export market and expect a gradual recovery during the year. Sentiments for the domestic market are positive with the recent monsoon pick-up.

On a long-term basis, customer centricity will remain a key thrust and we will continue to offer differentiated solutions to solve varying farmer needs. We will further intensify our efforts to build capabilities in manufacturing, digitalization and leverage collaborations and alliances.

Rallis India is a subsidiary of Tata Chemicals Limited and a part of the US$ 150 billion Tata Group. It is one of the leading players in the domestic crop protection sector and manufactures pesticides, herbicides, and fungicides at its factories in multiple locations. The companys product portfolio of seeds and crop care solutions is available across India. It has marketing alliances with several multinational agrochemical companies and is also considered as a preferred partner for contract manufacturing by leading global corporations.

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