Rallis India (RALLIS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue was INR 522 crore, down 13% year-over-year, mainly due to a 38% decline in export business volumes and pricing pressure; nine-month revenue at ₹2,233 Cr, slightly up from ₹2,212 Cr year-over-year.

• EBITDA for Q3 FY25 dropped 27% year-over-year, mainly from volume declines and pricing pressure in exports; PAT fell 56% year-over-year.

• Domestic agrochemical business saw volume growth despite intense competition and price corrections.

• Seed business revenue was INR 30 crore, flat year-over-year, but profit before tax grew 50% on a YTD basis.

• Financial results were reviewed and approved by the Board on 17 January 2025, with an unmodified review conclusion from statutory auditors.

Financial highlights

• Q3 revenue: INR 522 crore vs INR 598 crore last year; 9M FY25 revenue: ₹2,233 Cr (vs ₹2,212 Cr in 9M FY24); EBITDA: ₹306 Cr (vs ₹304 Cr); PAT: ₹157 Cr (vs ₹169 Cr).

• Export revenue: INR 110 crore; domestic revenue: INR 492 crore.

• Domestic crop care business grew 3% in volume; YTD crop care up 6% in volume.

• Biological and specialty solutions grew 13% in Q3 and 24% YTD.

• Healthy cash and liquid fund balance of over INR 200 crore as of December 31.

Outlook and guidance

• No formal forward guidance provided; management remains cautiously optimistic for Q4.

• Strategic focus on expanding product and customer portfolios, especially in Custom Synthesis Manufacturing (CSM) and Biologicals & Specialty Solutions (BSS).

• Continued cost management and agile pricing in domestic business to improve margins.

• Emphasis on digital transformation, R&D, and sustainability initiatives aligned with Tata Group's goals.

• Business performance is seasonal and can be impacted by weather and cropping patterns.