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Rallis India skids after Q2 FY22 PAT skids 32% to Rs 56 cr

Capital Market 

Rallis India declined 4.69% to Rs 289.45 after the company's consolidated net profit dropped 31.94% to Rs 56.45 crore on a 0.38% increase in revenue from operations (net of rebates and discounts) to Rs 727.80 crore in Q2 FY22 over Q2 FY21.

During the quarter, the Ankleshwar debottlenecking project for two key A.Is were completed and commissioned. The formulation plant at Dahej, CZ - Phase-I remained due for commissioning the multi purpose plant (Dahej) project progressed well. The company successfully launched three new products each in crop protection and crop nutrition category. The input cost environment continues to be challenging.

Commenting on the Q2 results, Sanjiv Lal, the managing director (MD) and chief executive officer (CEO) of Rallis India, said, "The erratic monsoon season this year was not favourable to agri input companies in the last quarter. In this backdrop, our domestic crop care business grew by 3%, but the seeds business declined by 65%. The drop in the seeds business was due to the changes in cropping patterns witnessed across the country as well as the proliferation of spurious cotton seeds. The overall good cumulative rainfall witnessed in Kharif also augurs well for the upcoming Rabi agricultural season."

"Meanwhile, the company's efforts towards dealing with logistic issues helped in exports delivering growth of 22% during the quarter. The raw material situation continues to be tough and we are focussed on minimising the disruptions to our production as much as possible. On a longer term basis, our capex plans, new product introduction plans and demand generation investments remain on course as we do believe that normalcy will be restored progressively. While positioning ourselves so, we are also consistently prioritising the safety and well-being of all our employees and other stakeholders."

Rallis India is a subsidiary of Tata Chemicals and a part of Tata Group. It is one of India's leading agro sciences companies.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, October 20 2021. 09:15 IST