Rallis India (RALLIS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue was INR 783 crore, nearly flat year-over-year, with growth in Crop Care offset by declines in Seeds and price drops in exports.

• EBITDA declined 13% to INR 96 crore, and PAT fell to INR 48 crore from INR 63 crore year-over-year, mainly due to export margin pressure and inferior mix.

• Net profit for the quarter was INR 48 crore, compared to a net loss of INR 21 crore in the previous quarter.

• Domestic crop care business showed strong volume-led growth, while the seed business faced supply constraints, resulting in a 15% revenue drop.

• International business revenue declined 5% due to continued price pressure, despite a 19% increase in volumes.

Financial highlights

• Revenue from operations for the quarter was INR 783 crore, compared to INR 782 crore year-over-year.

• Crop Care revenue rose 8% year-over-year to INR 561 crore, with domestic volume growth of 13%.

• Crop nutrition segment grew 31% and remains a key pillar for long-term growth.

• Seeds revenue fell 16% year-over-year to INR 222 crore, mainly from supply constraints.

• No external borrowings and a healthy cash balance as of June 30.

Outlook and guidance

• Near-term international outlook remains challenging due to price pressure and high inventory; domestic business outlook is positive, supported by favorable monsoon and commodity prices.

• Medium- to long-term growth prospects are optimistic, with focus on differentiated products, digital initiatives, and a robust product pipeline in Crop Nutrition.

• CapEx for FY25 expected to be around INR 100 crore.

• Focus on expanding global reach, strengthening R&D, and widening product portfolio.