Weak global business could impact FY21 prospects of Rallis India

Domestic revenues and margins, are however, expected to be resilient

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 y-o-y. 

The reason for the sharp decline was due to 30-40 per cent decline in volumes and realisations of herbicide metribuzin on the back of excess global inventory. In addition, what hit global revenues was the lower contract manufacturing sales due to falling offtake of fungicide metconazole and no exports of thermoplastic PEKK used in the aviation sector. Consolidated revenues declined