Rallis India - High Costs Dragged Q1 Margins Down; Long-Term Outlook Good: Anand Rathi

Rallis India - High Costs Dragged Q1 Margins Down; Long-Term Outlook Good: Anand Rathi

A truck spraying fertiliser in an open field. (Photo: Etienne Girardet/ Source: Unsplash)

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Anand Rathi Report

Aided by pricing and volume growth, Rallis India Ltd.’s Q1 revenue grew 16.5% YoY. Management talked of better margins driven by softer prices of some raw materials and better capacity utilisation on greater demand internationally.

The focus on launches, rising share of its herbicide range, export market share gains and ongoing capex plans kept the long term outlook positive.

Key short-term challenges: for its seeds business, shift in cropping patterns; greater use of illegal cotton seed, less contract-manufacturing demand.

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Anand Rathi Rallis India Q1FY23 Result Update.pdf
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