Despite good Kharif season, analysts cut earnings estimates for Rallis

Analysts have cut earnings estimates due to labour and logistic issues in India, demand and price overhang in international business

The impact of the Covid-19-led disruption is clearly visible on Rallis India’s March quarter (Q4) performance. What’s worse is that analysts believe the disruption, along with other business-related issues, will weigh on the agri products and services major’s performance in FY21, too. Not surprising then that its stock price is down nearly five per cent to Rs 214.15 in the past two trading sessions.

Dispatches, both in international and domestic businesses, are impacted, leading to a modest 2 per cent year-on-year growth in topline. Rallis highlighted that supplies worth Rs 16.04 crore could not be completed in the domestic arena,