Rallis India shares slip 7% on sharp decline in net profit for Q1FY25

The company's revenue during the period under review remained nearly unchanged at ₹782 crore compared to ₹783 crore in Q1FY24.

The performance of its crop care segment showed strong volume-led revenue growth of 8%. The seeds revenue, however, was down by 16% year on year in Q1FY25 due to supply constraints.

Rallis India's EBITDA slipped 17% to ₹58 crore from ₹48 crore in the year-ago period due to lower export pricing.

Announcing the results, Gyanendra Shukla, Managing Director & CEO, Rallis India Limited, said, “The agrochemical Industry continues to face growth challenges due to muted price arising from oversupplies." He added the company was cautious of the export market and expects a gradual recovery during the year.

"Sentiments for the domestic market are positive with the recent monsoon pick-up. Domestic demand is looking positive with monsoon arrival and pickup,” Shukla said.

Shares of Rallis India opened at ₹323 per piece, down by 5% from the previous closing. The stock slipped to the day's low before showing some recovery. Rallis India shares closed Friday's session at ₹324 a piece, down by 4.85% on the NSE.

Despite the challenging market, the company successfully launched two new products, Clast and Diggaz, in cotton seeds. During this period, it also commissioned a new Water-Soluble Fertilizers (WSF) plant.

Rallis India is a solutions provider for agri-inputs with an accent on innovation and farm science. The company has a distribution network of over 6000 dealers and 70,000 retailers. Its product portfolio includes pesticides, insecticides, seeds, fungicides, and plant growth nutrients.