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Rallis India declines after weak Q4 performance

23-Apr-24 11:17 Hrs IST

Revenue declined by 14% YoY to Rs 436 crore in the fourth quarter. The Crop Care segment revenue fell by 18% to Rs 410 crore in Q4 FY24 over Q4FY23, as its performance was primarily impacted by weak exports demand. The revenue of the Seeds segment stood at Rs 26 crore as against Rs 25 crore in Q4 FY 23.

The company?s EBITDA for Q4 FY24 was Rs 6 crore. The firm had recorded a negative EBITDA of Rs 66 crore in Q4 FY23.

Rallis said that the margins had improved through dynamic pricing, superior product mix and optimizing overhead costs in both Crop care and Seeds businesses. The base EBIDTA was also impacted by Rs 83 crore for provision for slow moving inventory and impairment of intangible in seeds.

For FY24, the company recorded revenue and net profit of Rs 2,648 crore (down 11% YoY) and Rs 148 crore (up 61% YoY), respectively.

Low Prices and weak global demand impact revenue growth. Profitability improved through pricing and cost management,? the company said in a statement.

Dr Gyanendra Shukla, managing director & CEO, Rallis India, said: ?Positive low single digit volume growth 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.

Exports business declined by 35% and the market continues to be under pressure due to Geo political 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 digitization capabilities to build differentiation.

Rallis India is a subsidiary of Tata Chemicals Limited and a part of the US$ 150 billion Tata Group. It is one of the leading players in the domestic crop protection sector and manufactures pesticides, herbicides, and fungicides at its factories in multiple locations. The company?s product portfolio of seeds and crop care solutions is available across India. It has marketing alliances with several multinational agrochemical companies and is also considered as a preferred partner for contract manufacturing by leading global corporations.