Rallis India is among the top three losers on the BSE since the opening bell today; falling almost 7% to an intraday low at Rs.229 and is currently trading at Rs.233 levels.
The stock price tanked as the company reported a disappointing Q3FY23, reporting a 43% (YoY) decline in net profit at Rs.22.55 crore. Revenue was very flat, from Rs.628 crore to Rs.630 crore.
EBITDA fell 21% to Rs.53 crore due to higher marketing spends and provision taken for retrospective rent demand by MbPA.
The company said that the erratic rainfall in the domestic market and headwinds in international business led to this fall in the earnings.
In Q3, its domestic crop protection business grew by 7.7% while crop nutrition business by 22%. Seeds business topline was down 14% .
Exports declined by 6.5%, primarily due to inventory build-up at the customer end.
The company remains positive due to increasing crop acreages and robust commodity prices for the ongoing Rabi season.