Rallis India's stock tanks 7% after sluggish June quarter; profit drops 24%

Rallis India’s stock slumped by 6.86 per cent at Rs 317.25 per share on the BSE in Friday’'s intraday deals. This came after the software developer delivered its quarter one earnings for the financial year 2024-25 (Q1FY25) on Thursday.

The agrochemical firm reported a 23.80 per cent year-on-year (YoY) decline in profit after tax (PAT) to Rs 48 crore for the quarter ending June 30, compared to Rs 63 crore in the same period last fiscal year. 

Meanwhile, the company’s consolidated revenues from operations remained largely unchanged at Rs 783 crore during the quarter, as against Rs 782 crore in the corresponding period of the previous year.

Rallis India’s MD and CEO, Dr Gyanendra Shukla, in an exchange filing said that the agrochemical Industry continues to face growth challenges due to muted prices arising from oversupplies. Meanwhile, domestic demand is looking positive with monsoon arrival and pickup, he added.

“Crop care delivered strong volume led revenue growth of 8 per cent. Seeds revenue was down by 16 per cent versus previous year largely due to supply constraints. Despite market challenges, concerted actions were taken to drive margins through better product mix and dynamic pricing,” the CEO said. 

The company has a total market capitalisation of Rs 6,237.59 crore, according to BSE. The company’s shares are trading at a price to earnings multiple of 44.76 times with an earning per share of Rs 7.61

At 11:38 PM, shares of Rallis India were trading 5.93 per cent lower at Rs 320.40 a piece. By comparison, the BSE Sensex was down 0.40 per cent at 81,021 levels.