Rallis India slipped 1.75% to Rs 204.85 after the company reported 18.3% fall in net profit to Rs 67 crore despite a 16.5% rise in revenue to Rs 863 crore in the quarter ending 30 June 2022 as compared with the same period last year.
The Tata Group company said that the revenue growth was driven by 11.6% of price growth and 5% of volume growth. On the segmental front, Crop Care segment recorded revenue growth of 26.5% YoY while the Seeds segment revenue remained flat for the quarter.
EBITDA declined by 7.4% to Rs 113 crore in Q1 FY23 from Rs 122 crore in Q1 FY22.
Rallis further said that the improving margins in Crop Care and lower margin in seeds impacted overall margins. Seeds margins were impacted due to higher provision on stocks and slower liquidation due to segment shifts.
Profit before tax in Q1 FY23 stood at Rs 91 crore, down by 16.7% from Rs 109 crore in Q1 FY22.
Sanjiv Lal, managing director, and CEO, Rallis India said, In Q1, we witnessed a strong growth of 16.5% in revenue on the back of 17.1% growth in domestic crop care business and 51% growth in exports.
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However, we faced cost headwinds which affected our margins. In the seeds business, there were challenges of delayed monsoon and crop shifts. The revival of monsoons in July augurs well for agriculture.
Rallis India is a subsidiary of Tata Chemicals and a part of the US$ 100+ billion Tata Group. It is one of India's leading Agro Sciences Companies, with the most comprehensive portfolio of products/solutions for Indian farmers. It has marketing alliances with several multinational agrochemical companies.
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