Rallis India Ltd. reported a 20% year-on-year increase in its standalone net profit in the second quarter of the current financial year, according to an exchange filing on Tuesday.
The Tata Chemicals Ltd. subsidiary posted a profit of Rs 98 crore for the quarter ended September, compared to Rs 82 crore in the same quarter last year. Revenue grew 12% year-on-year for the quarter ended September, reaching Rs 928 crore from Rs 832 crore.
"Domestic Crop Care delivered volume-led revenue growth of 11%, with prices impacting overall realisation," Chief Executive Officer Gyanendra Shukla said. "Seeds revenue was up by 48% due to better Kharif liquidation."
Operating income or earnings before interest, taxes, depreciation, and amortisation, rose 25% to Rs 166 crore. The Ebitda margin expanded to 18% from 16% in the same period last year.
Prominent product launches by the company in the second quarter include Aquafert Banana Grade (Water Soluble Fertilizer), Consorich N,P,K (Biofertilizer) for crop nutrition; three seed products across vegetable crops; a novel insecticide for Bio-Gene Technology Ltd., an Australian company; and Anubandh Edge, a unified digital platform designed to enhance engagement with retailers in crop care and seeds businesses.
The company also reported the successful completion of pilot-scale production of pre-commercial quantities of Flavocide.
The share price of Rallis India closed 0.47% higher at Rs 322.50 apiece on the NSE, compared to a 0.87% decline in the benchmark Nifty 50. The stock has risen 0.28% on a year-to-date basis and 49.83% over the past 12 months.
Out of the 15 analysts tracking the company, two have a 'buy' rating on the stock, as many suggest 'hold' and 11 recommend 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential downside of 20.3%.
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