CRISIL reaffirms rating on Rallis India's facilities worth Rs515 crore; stock adds ~1%

11 Oct 2022 , 09:22 AM

Rallis India Limited informed that CRISIL Ratings has reaffirmed its ‘CRISIL AA+/Stable/CRISIL A1+’ ratings on the bank facilities and commercial paper programme of the company.

The ratings remain consistent with Rallis’ well-established position in the Indian crop protection industry, significant emphasis on exports, branding, and farmer relationships, as well as a manageable financial risk profile.

The parent company, Tata Chemicals (TCL; rated CRISIL A1+), and the ensuing operational and need-based financial support provided by TCL are both taken into account in the ratings. The sensitivity to hazards present in the Indian crop protection market as well as working capital-intensive activities serve to somewhat counterbalance these rating strengths, said CRISIL in its rating rationale.

Operating results were consistent for fiscal 2022, with revenue increasing 7% to Rs2,609 crore (FY21: Rs2,439 crore) and operating success supported by 6% growth in exports and 12% growth in the domestic branded formulation. However, because of a rise in the price of raw materials, the operating margin declined to 11% for the fiscal year 2022, from 14% in the preceding fiscal year.

At around 9.25 AM, Rallis India was trading at Rs215.20 up by 0.61% from its previous closing of Rs213.90 on the BSE. The scrip opened at Rs214.90 and has touched intraday high and low of Rs215.80 and Rs214.50 respectively.

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