Shares of Rallis India dipped 9 per cent to Rs 255 on the BSE in Friday’s intra-day trade after the company reported a consolidated net loss of Rs 14 crore in March quarter (Q4FY22), on higher raw material cost. The stock of the Tata Group and a subsidiary of Tata Chemicals had posted a profit after tax of Rs 8 crore in a year ago quarter.
At 09:30 am; the stock traded 6 per cent lower at Rs 263.45, as compared to a 0.78 per cent decline in the S&P BSE Sensex.
The company engaged in pesticides & agrochemicals business has seen its consolidated revenues grew 8 per cent year-on-year (YoY) to Rs 508 crore from Rs 471 crore in Q4FY21. The company’s domestic crop care business grew at 14.0 per cent and exports by 6.2 per cent, while seeds business faced challenges and revenue declined by 13 per cent during the quarter.
Overall margins remained under pressure amid rising inflation. This was inspite of judicious price corrections undertaken by the company keeping the end farmer interests and market conditions in mind. To reduce dependence on imported intermediates, the company has developed domestic suppliers for certain items.
The management said the supply chain challenges continued into Q4 with availability issues for certain intermediates as well as steep cost inflation. Calibrated price corrections have helped in partially neutralising the material cost inflation, it added.
On the positive side, predictions of normal monsoons and robust commodity prices both locally and globally are expected to have a favourable impact on Indian agriculture, the management said.
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