Rallis India: Metahelix saves the day

GST-led destocking hurts agrochemicals' sales, offsetting rise in margins in seeds business

Agrochemicals and seeds major Rallis India put up a weak show during the June quarter largely due to the goods and services tax (GST)-led destocking of inventory by trade partners. 

Pesticide sales were impacted as channel placement was severely disrupted, leading to a decline in agrochemicals’ (crop protection and pesticides) revenue during the period. Though the international business, which includes contract manufacturing for exports, witnessed a double-digit growth, it wasn’t enough to lift the standalone revenues, which remained flat.

The company also continued to invest in its business, which, coupled with higher other expenses, led to a 65 per cent year-on-year (y-o-y)