Rallis India gains ~15% post Q2 results

16 Oct 2024 , 12:29 PM

Rallis India shares rose as much as 15% on October 16 as investors celebrated the company’s well-rounded performance from July to September. In the second quarter, the company increased its profit, revenue, and profitability.

Rallis India’s shares were trading at ₹367.05 on the NSE at 09.33 a.m., drawing closer to their all-time high of ₹373.20. The robust Q2 earnings report also increased trading volume in the counter. So far, almost 32 lakh shares have changed hands, which is much higher than the one-month daily traded average of three lakh shares.

The company’s net profit for the quarter increased 20% year on year to ₹98 Crore, up from ₹82 Crore in the previous period. Revenue followed a similar trajectory, increasing 11.5% to ₹928 Crore in Q2 compared to ₹832 Crore in the same period last fiscal.

Gyanendra Shukla, Managing Director & CEO of Rallis India, claimed that the growth in Q2 was supported by strong domestic demand with above-normal monsoon, stronger commodity prices, and volume recovery in the overseas market, even if pricing remained restrained.

Domestic crop care generated 11% revenue growth, with pricing affecting overall realisation. Seeds revenue increased by 48% due to improved kharif liquidation. International business volume has recovered, but prices continue to be an issue,” Shukla noted.

Along with significant topline and bottomline growth, EBITDA margin increased to 17.9% in Q2, up from 16% in the same period the previous fiscal year.

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