Rallis India PAT slumps 54% YoY to Rs 11 crore in Q3 FY25

The company said that profitablity was impacted due to lower EBITDA.

In third quarter of FY25, profit before tax stood at Rs 19 crore, registering a de-growth of 36.67% on YoY basis.

EBITDA declined 27% YoY to Rs 44 crore in the December 2024 quarter, due to volume drop and pricing pressure in exports impacted margins.

Revenue from Crop care declined 13% YoY to Rs 492 crore in Q3 FY25. Domestic Crop care volumes were up by 2.5% in Q3 FY25 while exports volumes fell by 34% due to weak demand.

Revenue from Seeds slipped 7% YoY to Rs 30 crore during the quarter, largely due to drop in hybrid mustard market demand.

On nine-month basis, the company's net profit shed 7.1% to Rs 157 crore on 0.95% rise in revenue from operations to Rs 2,233 crore in 9M FY25 over 9M FY24.

Dr. Gyanendra Shukla, managing director & CEO, Rallis India, said, 'Domestic business registered volume growth in the backdrop of intense market competition. I am pleased with the growth in Biologicals & Specialty solutions business, which has grown by 13%. Seeds business revenue was Rs 30 crore as against Rs 32 crore in Q3 PY. Exports business continues to face headwinds with business registering a de-growth of 38% resulting in overall revenue de-growth of 13% and drop in profitability .

Our efforts will continue to be focused on improving market share in the domestic business underpinned by the growing segments of Seeds, Herbicides and Biologicals & Specialty solutions. We have planned new differentiated product launches to serve the varying needs of farmers. In Seeds business, our teams are working for the upcoming Kharif season.

We are also in the final stages of commercializing a new active ingredient 'Metalaxyl-M' and are confident of the long-term potential of the product both for domestic and international markets. We will intensify the actions around expansion of our customer base and deepening strategic partnerships.

We have commenced actions to refresh our talent base in key positions. Our efforts to significantly improve engagement with farmers resting on the digital platform have been initiated. Sustainability is an integral part, and we remain committed to a greener future.'

Rallis India is a subsidiary of Tata Chemicals and a part of the US$ 165 billion Tata Group. It is one of India's leading agro sciences companies, with more than 75 years of experience of servicing rural markets with the most comprehensive portfolio of products/solutions for Indian farmers. It has marketing alliances with several multinational agrochemical companies.

The scrip closed 0.52% higher at Rs 289.75 on Friday, 18 January 2025.

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