Analysts hopeful of Rallis' growth prospects amid robust domestic revenues

Gains in domestic revenues and margin in Q2 offset weak global business

The sharp fall in international revenues dented the September quarter performance of Rallis India. The segment, which accounted for 24 per cent of the company’s revenues (H1FY20 revenue share at 34 per cent) in the quarter, fell 29 per cent year-on-year (YoY). 

The reason for the steep fall was a 30-40 per cent decline in volumes and realisations of herbicide metribuzin on the back of excess global inventory. Also, what hit global revenues was lower contract manufacturing sales because of falling offtake of fungicide metconazole and no export of thermoplastic PEKK, which is used in the aviation sector. Consolidated revenues declined