Rallis India skid 5.70% to Rs 277.85 after the company's consolidated net profit fell 13.3% to Rs 39.56 crore on a 10.1% increase in net sales to Rs 628.08 crore in Q3 FY22 over Q3 FY21.
Consolidated profit before tax (PBT) skid 14.5% to Rs 53.07 crore in Q3 FY22 from Rs 62.05 crore in Q3 FY21. Rallis India, in its press release, stated that the raw material availability and costs continued to be challenge during the quarter. The Ankleshwar debottlenecking project for two key active ingredients were completed and commissioned. The MPP project has been progressing well. The formulation plant at Dahej, CZ - Phase 1 was completed while the commercial production was started.
Meanwhile, Rallis India launched new microbial biopesticide, a potash rich organic manure and a new maize hybrid. The focus continued on supply chain amidst availability and logistic challenges and high international freight rates. The select commodity prices and export demand for crop protection were good. The overall Rabi sown area in India remained stable.
Sanjiv Lal, the managing director (MD) and chief executive officer (CEO) of Rallis India, said, "The erratic monsoon season this year has not favoured agri input companies as excessive rainfall continued into Q3 in the southern states. Despite these challenges, our domestic crop care business grew at 9.4%, and exports by 19% during the quarter. The seeds industry continued to face headwinds due to restrictions for sale of paddy and maize hybrids in some states. Supply chain challenges continued into Q3 with availability being a challenge for certain intermediates as well as steep inflation in prices. We are focussed on minimising the disruptions to our production as much as possible and calibrated price corrections have helped in partially neutralizing the RM cost inflation."
"On a longer term basis, our capex plans, new product introduction plans and demand generation investments remain on course as we do believe that normalcy will be restored progressively. While positioning ourselves so, we are also consistently prioritising the safety and well-being of all our employees and other stakeholders."
Rallis India is a subsidiary of Tata Chemicals and a part of Tata Group. It is one of India's leading agro sciences companies.
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