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Earnings Call Transcript

Rallis India Earnings Call Transcript: Key Takeaways

Rallis India delivered a 7% revenue growth and 23% EBITDA jump, though profits were boosted by a one-time employee provision reversal. Management is managing a tough agrochemical environment using pricing hikes to offset volume sluggishness.

Guidance and delivery
Management target Revenue 8.0% FY27
Highlights
Revenue growth7% YoY growth driven by 5% pricing and 2% volume increase.
MarginsEBITDA expanded 23%, aided by one-time provision reversal of ₹35 Cr.
Demand visibilitySubdued due to late monsoons; recovery expected as sowing catches up.
Management confidenceBalanced, acknowledging sector stress while highlighting long-term structural R&D shifts.

Growth

Growth was 7% YoY, driven mostly by a 5% pricing increase while volume lagged at 2%. Domestic B2C outperformed exports.

Outlook

Aims for 500 bps EBITDA margin expansion over five years. Industry expects 6-8% agrochemical growth for FY27.

Risks

Exports degrew 28% due to Chinese price competition. Delayed monsoons and El Niño remain critical threats to Kharif demand.

Last quarter's promises, checked

Delivered

  • Guided Seeds growth → delivered 15% YoY growth (= BEAT)
  • Guided Crop Care growth → delivered 8% YoY growth (= BEAT)
  • Guided B2C revenue growth → delivered 5% YoY growth (= BEAT)

Partly delivered

  • Guided inventory normalization → delivered slightly elevated levels (= PARTIAL)

Missed

  • Guided B2B revenue → delivered 7% decline (= MISS)
  • Guided Export topline → delivered 33% de-growth (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: RALLIS. Summary written with AI assistance from the document.

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Rallis India Ltd: key numbers

Share price
₹200.38
Market cap
₹3,897 Cr
Revenue (annual)
₹2,897 Cr
Net profit (annual)
₹183.9 Cr
P/E (TTM)
18.2×Sector 37.5×
Promoter holding
55.08%+0.00% QoQ
FII holding
9.12%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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