Shares of Rallis India started the trading day in green breaking its three straight session losing streak.
What Happened: The Tata Group company’s shares are upbeat today as it reported its earnings for the quarter ended September. The speciality chemicals company reported a net profit of ₹82 crore for the quarter, marking a 13.8% increase compared to the ₹72 crore recorded during the same period last year.
However, the company’s revenues for the quarter saw a decline of 12.5%, amounting to ₹832 crore in contrast to the previous year’s ₹951 crore. The drop in revenues was primarily attributed to subdued export demand, decreasing prices, and erratic rainfall affecting the domestic market.
Rallis India’s managing director and CEO, Sanjiv Lal, acknowledged the challenges faced in the revenue department, stating, “Our revenue has been affected by weak export demand, falling prices, and erratic rainfall in the domestic market.” Despite the revenue dip, Lal highlighted the silver lining, noting that improved margins were achieved through a more favourable product mix and effective cost optimisation initiatives implemented across various business segments.
EBITDA for the quarter was at ₹133 crore with an EBITDA margin of around 16%. Earnings per share for the quarter came in at ₹4.23.
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Price Action: Rallis India’s share price was up 1.04% to trade at ₹208.70 in the early hours of trading on Thursday.
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