Tata Group company Rallis India's fourth quarter earnings are expected to be weak with consolidated profit falling 25.8 percent year-on-year to Rs 15.8 crore and revenue declining 5.6 percent to Rs 304 crore, according to analysts polled by CNBC-TV18.
Operating profit (earnings before interest, tax, depreciation and amortisation) may slip 11 percent year-on-year to Rs 37.8 crore and margin may contract by 80 basis points to 12.9 percent in January-March quarter due to sticky input costs.
Impact of currency on margin will be closely watched.
Analysts expect technical and CRAMS businesses to remain under pressure. Topline may decline owing to muted domestic sales.
They expect 15 percent decline YoY in agrochemical sales on lower realisations and expect no respite from Metahhelix that contributes around 10 percent to revenue. According to them, Metahelix revenue could show around 10-11 percent decline and muted margin in Metahelix may drag margin.
Export sales may be muted on weaker global agrochemical consumption while challenges in Europe and Latin America may persist.
Even Q4 could see adverse impact from Brazil due to drought and weakness in currency.
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