Rallis India (RALLIS) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached INR 928 crore, up from INR 832 crore year-over-year, with profit after tax rising to INR 98 crore, reflecting robust growth.

• Domestic crop care and seeds led growth, with crop care volumes up 17% and seeds revenue surging 48% year-over-year, aided by lower returns and digital tools.

• Exports remained under pressure due to global pricing and supply dynamics, with export revenue declining and volumes flat.

• Portfolio rationalization, digitalization, and cost management initiatives improved efficiency and reduced returns.

• The business is seasonal, with performance influenced by weather and cropping patterns.

Financial highlights

• EBITDA for Q2 FY25 was INR 156 crore, up from INR 133 crore year-over-year; total income for Q2 FY25 was INR 938 crore.

• Basic and diluted EPS for Q2 FY25 was ₹5.04, compared to ₹4.23 in Q2 FY24.

• Net cash flows from operating activities for H1 FY25 were ₹42 crore, down from ₹78 crore in H1 FY24.

• Cash and liquid balance stood at INR 229 crore as of September 30.

• Total equity as of 30 September 2024 was ₹1,924 crore, up from ₹1,829 crore as of 31 March 2024.

Outlook and guidance

• Domestic business outlook remains positive due to good reservoir levels and favorable monsoon.

• Export business faces continued challenges from global oversupply and pricing pressure.

• Focus remains on outperforming market growth and improving profitability through portfolio optimization and digital initiatives.

• Performance is expected to remain seasonal, dependent on weather and cropping patterns.