Rallis India Q2 results: PAT up by 13.88% at Rs 82 crore

Tata group firm Rallis India on Wednesday reported a 13.88 per cent growth in profit after tax (PAT) for the quarter ending September 30 to Rs 82 crore compared to the same period of the previous financial year.

The company posted a PAT of Rs 72 crore for the corresponding period of the previous fiscal, Rallis India said in a regulatory filing.

However, revenue from operations of the company declined by 12.51 per cent during the quarter under review at Rs 832 crore compared to Rs 951 crore in the same period of the previous year.

“Our revenue has been affected by weak export demand, falling prices and erratic rainfall in the domestic market. "Although our revenue for the second quarter of FY24 was lower at Rs 832 crores compared to Rs 951 crores of the same period of the previous year, margins have improved through better product mix and cost optimisation activities across businesses," Rallis India Managing Director and CEO Sanjiv Lal said.

He said the company's crop care revenue was Rs 737 crores compared to Rs 923 crores in the previous year, mainly due to lower exports.

The seeds business did well through improved sales and strong performance for Rallis India's cotton hybrids in particular, he said, adding that the multi-purpose plant at Dahej in Gujarat has been put to use.

"Amidst El Nino conditions, we remain cautious about the domestic and international markets. Global Agchem demand continues to remain soft on the back of inventory overhang and lower prices and revival is expected only after the third quarter of FY24. "The company's long-term strategy remains unchanged, focused on expansion of product portfolio, widening of market reach, increasing manufacturing capacities and digitalisation in operations,” Lal added.

Shares of the company on Wednesday closed at Rs 206.50, down 1.05 per cent on BSE.

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