Challenging times continue for Rallis India as Q4 net sees 93% decline

Despite the company's efforts to turn around the domestic business, analysts expect benefits to accrue only after 6-9 months

Agrichemicals and seeds major Rallis India continues to disappoint the Street given the lower-than-expected performance for March 2019 quarter (Q4). A 93 per cent decline in consolidated net profit stumped both investors and analysts, even as a weak performance was expected due to the challenging environment. While revenues at Rs 340 crore declined 8 per cent year-on-year in Q4, they were much below Bloomberg consensus estimates of Rs 396 crore. Operating profit at Rs 6.7 crore declined 80 per cent year-on-year and Rallis just managed to break even with a net profit of Rs 1.3 crore. Not surprising that the