Rallis India slips 6%

Rallis India today slipped 6% to Rs.163, which is not very far from its 52-week low of Rs.159.55. Volumes are up 1.5 times.

The market is disappointed with its performance for Q3FY19 with consolidated net profit slipping 45% (YoY) at Rs.14 crore on a 7% rise in operational revenue at Rs.417 crore.

EBITDA was down from 9.7% to 6.6% as higher input cost – imports from China resulted in profitability and margin compression.

The company has taken strategic initiatives in terms of strengthening dealer network and revised incentive structure aided domestic performance. And the company expects profitability to pick up going forward following growth specific initiatives undertaken towards driving growth.  The Board has also approved investing Rs.100 crore in expanding capacity in key products.