Rallis India Q2 Results: Net Profit Up 20% to ₹98 Cr, Revenue Up 12%

Rallis India Ltd, an agri-inputs company, announced a 19.5% year-on-year (YoY) growth in net profit, reaching ₹98 crore for the second quarter ending on September 30, 2024. The company's revenue from operations also saw an 11.5% rise, amounting to ₹928 crore, compared to ₹832 crore during the same period in the previous fiscal year.

Rallis India Q2 Results Highlights

• Revenue: Up 11.5% At ₹928 Crore Vs ₹832 Crore (YoY).
• Net Profit: Up 19.5% At ₹98 Cr Vs ₹82 Cr (YoY).
• EBITDA: Up 24.8% At ₹166 Cr Vs ₹133 Cr (YoY).
• Segment Performance: The Crop Care segment experienced an 11% revenue growth, primarily fueled by a 17% increase in volume. Meanwhile, the Seeds division saw a 48% rise in revenue.
• Stock Reaction: Rallis India’s shares saw strong demand on Wednesday, October 16, 2024, surging by 16.23% to reach an intraday high of ₹ 373.80 per share.

Rallis India Management Commentary

Gyanendra Shukla, Managing Director and CEO of Rallis India, credited the company's strong quarter result performance to solid domestic demand, supported by favorable monsoon conditions and higher commodity prices. He noted that while the international market is seeing a recovery in volumes, pricing pressures continue to persist.

“Our efforts will continue to be directed towards improving market share in domestic business. We remain positive for the upcoming Rabi season with higher reservoir water levels. Hybrid Seeds Production acres and cost continues to be a concern. Customer and product base expansion will remain a focus for international business,” said Shukla. 

Regarding the company's outlook, Gyanendra Shukla emphasized that customer centricity will remain a primary focus, with plans to continue offering tailored solutions to address diverse farmer needs. He also highlighted the company's intent to further strengthen its digital capabilities and capitalize on collaborations and alliances to drive growth.

Stock Market Reaction 

Shares of Rallis India Ltd, part of Tata Group surged by 16.23% in Wednesday's trading session, reaching an all-time high of ₹373.80. The stock was last trading 13.96% higher at ₹366.50, reflecting a 44.86% gain so far in 2024. 

At 9:42 AM IST, Rallis India was trading 13.93% up at ₹366.40 per share, while the BSE Sensex was down 0.12%, standing at 81,722.76.

The stock saw significant trading activity, with around 3.78 lakh shares exchanging hands, far exceeding the two-week average volume of 27,000 shares. The turnover for the stock was ₹13.75 crore, giving Rallis India a market capitalization of ₹7,114.64 crore.

The stock was trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) was 72.85, indicating that it was in the overbought zone (above 70).

About Rallis India Ltd

Rallis India, a subsidiary of Tata Chemicals and part of the over $150 billion Tata Group, is an agro-sciences company that offers one of the most comprehensive portfolios of products and solutions for farmers. The company has established marketing alliances with various multinational agrochemical firms. As of June 2024, the promoters held a 55.08% stake in Rallis India.