Rallis India Ltd share Price Today

Rallis India is a leading agrochemical company with a presence across agri input value chain and a strong, healthy pipeline of sustainable products.

• The company has a diversified portfolio, supported by a strong channel network of more than 6,800 dealers and 93,000 retailers
• In terms of revenue contribution, domestic crop care constitutes 54% of overall revenue followed by international crop care of 30% and the rest from the seeds business

Rallis’ numbers were below I-direct estimates led by erratic rainfall in the domestic market and headwinds in international markets.

• Revenues remained flat YoY to ₹ 630 crore. Domestic crop care increased 7% YoY while seed segment was down 14%. Geography wise, domestic crop protection business grew ~8%, crop nutrition business by 22% but exports declined 6.5%
• Gross margins contracted 83 bps YoY to ~39.4%. However, gross margins increased 508 bps QoQ reflecting a softening of raw material costs
• EBITDA declined 20.9% YoY to ₹ 53 crore. Crop care segment EBITDA increased 134% YoY to ₹ 71 crore while seeds segment EBITDA declined 64% to -₹ 18 crore. Adjusted PAT declined 43.1% YoY to ₹ 22.5 crore

Agrochemicals company Rallis India announced Q1FY25 results:

Business Highlights:

• Successful Key New Products launches:
  • Crop Protection:
    • Mark Plus (Diclosulam 0.9% Pendimethalin 35% SE), 9(3) Herbicide for Soybean and Groundnut
    • Clifton (Mesotrione 2.27% Atrazine 22.7% SC), Herbicide for Maize and Sugarcane
    • Kevat (Pyrithiobac Sodium 10 % EC), Herbicide for Cotton
    • Blend (Bifenthrin 10% Thiamethoxam 5% SE), Insecticide for multiple crops
  • Crop Nutrition: Aquafert Pomegranate Grade Water Soluble Fertiliser
  • Seeds: 14 products across field and vegetable crops
• “Dhaan ka power play" campaign launched to educate farmers of Punjab and Haryana about key Paddy products.

Announcing the results, Gyanendra Shukla, Managing Director & CEO, Rallis India, said, “The agrochemical Industry continues to face growth challenges due to muted price arising from oversupplies. Domestic demand is looking positive with monsoon arrival and pickup.

Our revenue for Q1FY25 was at Rs 783 crore at par with Rs 782 crore of Q1FY24, Profit after tax was Rs 48 crore, as compared to Rs 63 crore of Q1FY24. Crop care delivered strong volume led revenue growth of 8%. Seeds revenue was down by 16% vs PY largely due to supply constraints. Despite market challenges, concerted actions were taken to drive margins through better product mix and dynamic pricing. We are pleased with the progress of our new launch of “Clasto” in Crop Protection and “Diggaz” in Cotton Seeds. Water Soluble Fertilizers (WSF) plant was commissioned during the quarter to support the Crop Nutrition Business.

We remain cautious about the export market and expect a gradual recovery during the year. Sentiments for the domestic market are positive with the recent monsoon pick-up.

On a long-term basis, Customer Centricity will remain a key thrust and we will continue to offer differentiated solutions to solve varying farmer needs. We will further intensify our efforts to build capabilities in Manufacturing, Digitalization and leverage Collaborations and Alliances”.

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