Rallis India wilts under Q2 numbers

Rallis India is amongst the top losers on the BSE currently, down 4% at Rs.203 with an intra day low at Rs.201. Volumes though remain muted.

The stock is down in the red as the Q2FY16 numbers were very disappointing. Due to the deficit rains since July, which impacted kharif crops like cotton, soyabean, paddy, the overall acreages growth and yields have come down. And it is this impact which we could see in the company’s performance. Its Q2FY16 consolidated net profit was down 22% at Rs.57 crore on a 22% fall in total income at Rs.502 crore. Its EBITDA was down 21% at Rs.96 crore. Thanks to the total costs coming down from Rs.533 crore to Rs.418 crore, EBITDA margins saw a marginal improvement from 19% to 19.2%.

The company said that its international business faced pressure in major markets of Brazil & USA and it is hoping that the markets will get better in H2FY16.