Rallis India reports decline in FY24 revenue amid market challenges
Rallis India Limited, a subsidiary of the Tata Group and a prominent entity in the Indian agricultural inputs industry, has released its financial outcomes for the fourth quarter of the fiscal year ending March 2024. Under the leadership of Dr. Gyanendra Shukla, Managing Director & CEO, the company announced a significant increase in its profit after tax (PAT), which rose to ₹148 Cr in FY24 from ₹92 Cr in FY23, marking a notable improvement despite challenging market conditions.
The company reported a revenue of ₹2648 Cr for FY24, which represents an 11% decline from the previous year. This decrease was attributed to ongoing challenges in the export markets and subdued agro-chemical prices. However, Rallis India saw positive developments in its Domestic Formulation business, which achieved low single-digit volume growth. Additionally, the Seeds segment reported a 21% revenue increase and reached a break-even point in profits, driven by the strong performance of its Cotton hybrids, Diggaz and Aatish Express.
Amidst a downturn in its exports business, which saw a 35% decline due to geopolitical unrest and continued de-stocking, Rallis India is maintaining a strategic focus on enhancing its market position through superior product offerings tailored to meet farmer needs. The company is committed to continuing investments in marketing, manufacturing, and digitization capabilities to create a differentiated position in the market.
The quarter also marked several key developments for Rallis India. The company initiated work on the new “Rallis Science and Technology Centre (RSTC)” to boost its innovation capabilities. It also continued to refresh its Domestic crop care portfolio, launching three new products in the Crop Nutrition portfolio in Q4FY24.
Rallis India earned multiple accolades during the year, including a Significant Adoption Award from the Tata Affirmative Action Programme (TAAP), an Award of Merit at the first edition of the CII National Awards for Artificial Intelligence 2023 for its AI-based crop weather monitoring platform ‘Drishti’, and recognition as a “Kincentric Best Employer” 2023, positioning it among India’s top 16 companies.
The financial and operational strategies employed by Rallis India reflect a robust approach to navigating market volatility and reinforcing its leadership in the agri-inputs sector. The focus on innovation and technology, particularly in areas like artificial intelligence and crop science, positions the company well for future growth and sustainability in a competitive market.