D-Street
February 19, 2025 at 03:15 AM
Gist of interview of Gyanendra Shukla, MD and CEO of Rallis India Limited - a subsidiary of Tata Chemicals and an integrated crop care and seed company
Aims to grow faster than the industry average over the next five years - while the industry typically grows at 5-7%, its goal is to surpass this rate. The company is expecting significant improvement in RoC with the combination of portfolio adjustment as well as some of the cost-cutting measures. It is expecting at least 500 bps margin improvement in the next four to five years.
The company operates in multiple segments, including domestic crop protection, export crop protection, biologicals, and seeds. Domestic business performed well in volumes in Q3CFY, but the export market faced challenges due to low global commodity prices and legacy product issues. The company is focusing on improving its seed and biological portfolio, addressing weaknesses in the herbicide business, and generating more demand in the domestic market.
It reported a weaker performance in Q3CFY compared to the same period last year. Its net profit dropped 54.2% YoY to ₹11 crore, while revenue declined 12.7% YoY to ₹522 crore. EBITDA fell 29% YoY to ₹44 crore. EBITDA margin decreased to 8.4% from 10.4% YoY.
Its MCAP is around ₹3,996 crore. Its shares have declined 17% in the past year.