Rallis India plunges 9% as Q3 profit, revenue take a hit

Rallis India Ltd

Shares of Rallis India fell 8.7 percent on January 20 after the company reported a sequential and annual decline in its net profit and revenue for the quarter ended December.

At 9:20 am, the company's shares traded 7 percent lower at Rs 269. Year-to-date, the stock has declined over 9 percent, compared to the 3 percent decline in Nifty 50 during the same time frame.

The agri-inputs company, a subsidiary of Tata Chemicals, reported a 54.2 percent YoY decline in net profit to Rs 11 crore for Q3FY25. Revenue from operations dropped 12.7 percent YoY to Rs 522 crore, compared to Rs 598 crore in the year-ago period.

On a sequential basis, net profit slumped 88.8 percent, while revenue declined 43.8 percent.

The crop care segment reported a 13 percent YoY revenue drop, and the seeds segment posted a 7 percent decline. Weak export demand caused flat revenue for the nine months ending FY25, which stood at Rs 2,233 crore.

Rallis India's EBITDA fell 27 percent YoY to Rs 44 crore due to volume drops and pricing pressures, especially in exports. Export volumes declined 34 percent, while prices fell 4 percent, leading to a 38 percent revenue drop in the export segment.

Domestically, crop care volumes grew 2.5 percent, but a 4.5 percent price drop offset these gains. However, 9M FY25 revenue growth remained stable, driven by 24 percent growth in Biologicals and Specialty Solutions and 18 percent growth in herbicides.

"Domestic business registered volume growth in the backdrop of intense market competition," said Gyanendra Shukla, Managing Director and CEO of Rallis India. "Exports business continues to face headwinds with business registering a de-growth of 38 percent resulting in overall revenue de-growth of 13 percent and drop in profitability," he added.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.