Shares of Rallis India were wobbly on Wednesday morning as the Tata Group company posted its results for the December quarter.
What Happened: The company reported a 9.09% year-on-year increase in net profit to ₹24 crore in the December quarter. The growth was attributed to a decline in input costs, with raw material costs falling to ₹328 crore from ₹381 crore the previous year. However, the company’s revenue declined by 5% to ₹598 crore.
Despite the yearly improvement, both net profit and revenue were significantly lower compared to the previous quarter, where the company had reported a revenue of ₹832 crore and a net profit of ₹82 crore in the July-September period of 2023.
EBITDA for the period came in at ₹62 crore, up 16% from the ₹53 crore reported in the same period last year. The company said that the gross margin improved through superior mix and dynamic pricing in domestic crop care.
Rallis India also announced plans to expand capacity at its Pendimethalin Plant in Dahej, with an addition of 2000 MT per annum to the existing capacity of 5,000 MT. The expansion will be funded through internal accruals, with an investment of ₹15 crore.
Talking about the company’s outlook, Sanjiv Lal, CEO, Rallis India said, “We are closely monitoring Global market demand recovery and remain cautious about El Nino conditions. Global agro-chemical demand is still soft and is expected to recover only next financial year.”
Price Action: Rallis India’s share price was down 0.020 to trade at ₹253.30 early on Wednesday.
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