Rallis India declines 5% after net profit in Q3 falls 13.3% yoy to Rs40cr

20 Jan 2022 , 10:15 AM

Rallis India Limited, a TATA Enterprise and a leading player in the Indian Agri inputs industry announced on Wednesday its financial results for the quarter and period ended December 31, 2021.

The Company recorded consolidated revenues of Rs628cr for the quarter ended December 31, 2021, a growth of 10.1% over previous year (PY) of Rs570cr. Profit before tax (before exceptional items) was at Rs53 Cr, with a decline of 5.1% over PY of Rs56cr and the profit after tax (after exceptional items) was Rs40cr, registering a decline of 13.3% over PY of Rs46cr.

The Company recorded consolidated revenues of Rs2,09cr for the nine-month period ended December 31, 2021, a growth of 7.1% over PY of Rs1958cr. Profit before tax (before exceptional items) was at Rs239cr in 9MFY22, with a decline of 16% over PY of Rs284cr and the profit after tax (after exceptional items) was Rs178cr, registering a decline of 19.1% over PY of Rs220cr.

At around 10.18 am, Rallis India Ltd was trading at Rs279 per piece down by Rs15.65 or 5.31% from its previous closing of Rs294.65 per piece on the BSE.

Sanjiv Lal, Managing Director, and CEO, Rallis India said, “The erratic monsoon season this year has not favoured agri input companies as excessive rainfall continued into Q3 in the southern states. Despite these challenges, our domestic crop care business grew at 9.4%, and exports by 19% during the quarter. The Seeds Industry continued to face headwinds due to restrictions for sale of paddy and maize hybrids in some states.

Supply chain challenges continued into Q3 with availability being a challenge for certain intermediates as well as steep inflation in prices. We are focussed on minimising the disruptions to our production as much as possible and calibrated price corrections have helped in partially neutralizing the RM cost inflation.

On a longer term basis, our capex plans, new product introduction plans and demand generation investments remain on course as we do believe that normalcy will be restored progressively. While positioning ourselves so, we are also consistently prioritising the safety and well-being of all our employees and other stakeholders.”

Key Developments – Q3

• In spite of multiple disruptions and challenges the Company has faced during the quarter, our long term strategy remains on track
• Raw material availability and costs continue to be challenging
• Ankleshwar debottlenecking project for two key active ingredients completed and commissioned
• MPP project progressing well
• Formulation Plant at Dahej, CZ – Phase 1 completed. Commercial production started
• Successful launch of a new microbial biopesticide, a potash rich organic manure, and a new Maize hybrid
• Focus continued on supply chain amidst availability and logistic challenges and high international freight rates
• Select commodity prices are good and export demand for crop protection is good. Overall Rabi sown area in India remains stable.