Rallis India sees slight dip in Q1 revenue amid market challenges
Rallis India Limited, a TATA enterprise and a significant player in the Indian agri inputs sector released its Q1 FY24 financial results on June 30, 2023, recording a modest decrease in revenue from the previous year.
Despite the prevailing market difficulties such as high inventories, falling prices, and delayed monsoons, the company maintained its margins and pursued its long-term strategy of increasing production capacities, diversifying product offerings, and expanding market reach.
The company’s revenue stood at ₹782 Cr for the quarter, a drop from the ₹863 Cr recorded in the same period the previous year. However, both profit before tax (before exceptional items), which reached ₹85 Cr, and profit after tax (after exceptional items), totaling ₹63 Cr, remained reasonably robust, only slightly down from the previous year’s ₹91 Cr and ₹67 Cr, respectively.
The firm also repaid ₹25 Cr of its working capital loan during the quarter. “Although our revenues for Q1 FY24 were lower, margins were largely maintained through a better product mix and dynamic pricing actions,” said Sanjiv Lal, Managing Director & CEO of Rallis India. Lal also noted that the company is monitoring the impact of potential El Nino conditions on the Indian market and farmers.
Despite near-term obstacles, Rallis India’s long-term strategy remains steadfast. According to Lal, the focus is on expanding manufacturing capacities, broadening the product portfolio, and widening market reach. During the quarter, the company launched several new products, including three insecticides, a water-soluble fertilizer, and four seed products.
A new multi-purpose formulation plant at Dahej has begun producing trial batches, and a new plant at Akola has been inaugurated for Pendi CS. Moreover, the company’s cotton hybrid, Diggaz, has seen a positive response from the North Indian cotton belt, with four lakh packets expected to be liquidated. The “Agaz-e-Kharif” campaign was also launched to educate Punjab and Haryana farmers about the company’s key products and generate demand.