Rallis India Q3 Results: Profit Down 54.2%

Rallis India Ltd.'s net profit was down 54.2% in the third quarter of the current financial year, missing analysts' estimates.

The profit decreased to Rs 11 crore in the quarter ended Dec. 31, 2024, according to an exchange filing on Friday. Analysts tracked by Bloomberg had pegged the profit at Rs 29 crore.

“Domestic business registered volume growth in the backdrop of intense market competition. I am pleased with the growth in biologicals and specialty solutions business, which has grown by 13%," said Gyanendra Shukla, chief executive officer and managing director, Rallis India Ltd.

Seeds business revenue was Rs 30 crore as against Rs 32 crore in the third quarter of the previous year. 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, he said.

Rallis India Q3 FY25 Results Highlights (YoY)

• Revenue down 12.71% at Rs 522 crore versus Rs 598 crore (Bloomberg estimate: Rs 628 crore).

• Ebitda down 27.9% to Rs 44 crore versus Rs 61 crore.

• Margin at 8.4% versus 10.2%.

• Net profit down 54.2% at Rs 11 crore versus Rs 24 crore (Bloomberg estimate: Rs 29 crore).

Shares of Rallis India rose as much as 2.42% during the day to Rs 296 per share, before closing 0.21% higher at Rs 289.60 apiece on the NSE. This compared to a 0.47% decline in the benchmark Nifty 50.

The share price has risen 12.79% on a year-to-date basis.

Three of the 15 analysts tracking the company have a 'buy' rating on the stock and three suggest 'hold', with nine recommending a 'buy', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 13.9%.