Rallis India Q4 net loss narrows to ₹21 crore, board declares ₹2.5 dividend

Rallis India, a subsidiary of Tata Chemicals, on Monday declared a 16.6% year-over-year (y-o-y) drop in its revenue for the fourth quarter at ₹436 crore. The company’s net losses for the period narrowed to ₹21 crore as compared to ₹69 crore in the same period of previous fiscal.

For FY24, the company reported a 10.75% y-o-y drop in operating revenue at ₹2,648 crore while net profit rose 61% to ₹148 crore.

Gyanendra Shukla, Managing Director and CEO at Rallis India attributed the drop in revenue to the continuing challenges in the export demand and low agro-chemical prices. “Positive low single digit volume growth (has been witnessed) in our domestic formulation business. Seeds revenue grew 21% and delivered break-even profit. This was driven by the superior performance of our cotton hybrids viz. Diggaz and Aatish Express. Our innovation turnover index has also improved to 16% in FY24,” he said.

Shukla also pointed out that exports business declined by 35% and stated that the market continues to be under pressure due to geopolitical unrest and continuing de-stocking.

“On a long-term basis, we remain focused on improving our market position through superior product offerings to solve farmer needs. We will continue our investment behind marketing, manufacturing, and digitisation capabilities to build differentiation,” he said.

Rallis India said its board has recommended a dividend of ₹2.5 per equity share.

The company pointed out it has begun the work on new “Rallis Science and Technology Centre (RSTC)” to augment innovation capabilities and stated that it continued its focus on refreshing its domestic crop care portfolio. The company has launched three new products in the crop nutrition portfolio during the fourth quarter of FY24.

Shares of Rallis India have risen over 11% since the beginning of the year. The stock has gained over 41% in the last one year.