Rallis India Q2 PAT down -31.9% yoy at Rs56.49cr due to flat sales and higher costs

Rallis India Ltd reported flat 0.38% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs727.80cr. The revenues were lower by -1.72% on a sequential basis compared to Rs740.51cr revenues in the Jun-21 quarter.

While the agri inputs sales had been subdued in the early part of the quarter due to below average monsoon, the late pick up in monsoons has against raised the demand for agri-inputs due to hopes of a solid Rabi crop. The attractive MSP offered this year has also helped boost the demand for agri inputs.

The consolidated Profit after tax (PAT) for the Sep-21 quarter was down -31.9% at Rs56.49cr. The fall in profits was largely led by higher inventory costs and other expenses which resulted in the fall in profits.

Like most companies in the agrochemicals space, the company has also seen cost pressures due to the supply chain constraints across industries. Net margins at 7.76% was lower than the NPM of 11.44% margins on a yoy basis and also lower compared to 11.12% reported on sequential basis as compared to the Jun-21 quarter.

Financial highlights for Sep-21 compared yoy and sequentially