Latest news with #RallisIndia
Mint
7 days ago
- Business
- Mint
Seeds of change: How Rallis India plans to double growth without spending big
Rallis India Ltd, a Tata Group company manufacturing fertilizers and insecticides, has been cruising along at a steady pace without much hustle, but a new chief is looking to overhaul the business hoping to accelerate its growth. Chief executive Gyanendra Shukla, who took charge of Rallis India in April last year, aims to double its revenue in 5 years, including through acquisitions, even as he acknowledging that the company hadn't met expectations. While Rallis India's business is profitable and stable, shareholders' expectations are different, Shukla said in an interview with Mint, explaining the company's renewed focus on growth after a few tepid years. 'They are comparing us against peers in the equity market and looking at returns and payouts. Frankly, we haven't met those expectations just yet. And that is why accelerating growth has become absolutely critical," said Shukla, who previously held leadership roles at US agrochemical company Monsanto. 'We have been sound financially, but what we have lacked is a little bit of aggression, courage, and risk-taking," he said. Tata Chemicals Ltd is the largest shareholder in Rallis India with a 55% share, while public investors own the remaining 45%. Rallis India's revenue inched up about 0.6% to ₹2,663 crore in 2024-25 from ₹2,648 crore in FY24, when revenue had declined 11%. Profit after tax fell 15% to ₹125 crore in FY25 from ₹148 crore in the previous year. Even so, Shukla is confident the company can achieve high double-digit revenue growth over the next five years without incurring large-scale investments. 'We believe our current capacity is more than sufficient for the next five years." Shukla added that while Rallis India's manufacturing capital expenditure will be incremental—there are no plans to, say, establish a ₹500-crore facility; 'that is completely off the table for now"—growth can be accelerated through inorganic opportunities. 'We are in active discussions with Japanese and global players to explore potential opportunities and collaborations. If something materialises, our first preference would be to utilise existing assets because that is the most efficient approach," Shukla said. Also read | What cooling oil prices mean for India's fertilizer companies Rallis India's growth strategy: From weakness to strength Shukla expects Rallis India's seeds, soil and plant health, and domestic crop protection businesses to be the company's key engines of growth—the seeds business is where the 'gains will come from", he said. However, of Rallis India's ₹430 crore revenue in the March quarter—slightly down from ₹436 crore in the year-ago fourth quarter—the seeds business contributed only ₹25 crore while the crop care business accounted for ₹405 crore, which includes ₹37 crore from the soil and plant health segment. Modern breeding techniques can significantly enhance seed quality without necessarily involving transgenic methods or introducing foreign genes, Shukla said. Even conventional crossbreeding involves gene transfer, but controversies over genetically modified (GM) crops arise when bacterial genes are used, he added. That said, Shukla believes there are dozens of other advanced tools in modern biotechnology that Rallis India is actively using, and 'that is where gains in the seeds business will come from". Also read | Privatization of fertilizer companies back on the menu, one small firm at a time On areas of improvement for the company, Shukla explained, 'There are still notable gaps in our herbicide portfolio, and we are addressing these through new product launches and potential collaborations. Everything does not need to be manufactured in-house." Rallis India said in its latest earnings call that herbicides, part of the crop protection business, had become the largest category in the non-core rabi crop (sown in winters) segment. However, the company admitted that it remained weak in this category. 'We are weak on cotton herbicide. We are weak on soyabean herbicide. We are weak on maize herbicide. So, all across categories, we are weak. So that portfolio, I mean that is about 30-35% of the crop protection market," Shukla told analysts during the call on 24 April. Among Rallis India's key growth strategies, according to Shukla, is to drive expansion through herbicides and fill critical portfolio gaps. This year, the company will introduce two new products, with a rice herbicide slated for next year, the CEO said, adding that some products might be phased out to make room for new ones. Also read | China's supply cut and global disturbances reduces India's fertilizer imports A bigger challenge: Global trade According to analysts at Nuvama Institutional Equities, Rallis India needs to improve its fungicide and insecticide portfolios as some of its products have not been well accepted by the market. The analysts, however, added that the company is actively working to improve product efficacy and better align its offerings with market needs. Rallis India, which earns about 80% of its revenue from the domestic market, chiefly competes with Dhanuka Agritech Ltd, PI Industries Ltd, UPL Ltd, BASF India Ltd, and Coromandel International Ltd in India. In overseas markets, its main competitors include Bharat Rasayan Ltd, Sharda Cropchem Ltd, Sumitomo Chemical India Ltd, and Meghmani Organics Ltd. The broader agrochemicals market that Rallis India operates in has been buffeted by some recent macroeconomic and geopolitical challenges. For one, following the US's trade war with China, there are concerns that Chinese suppliers may dump crop protection inventory that was meant for the US into other markets, potentially disrupting price stability in India. Also, the global crop protection market experienced a sharp decline in value terms in 2024, hurt by weak agrochemical and commodity prices, high input costs, and unfavourable weather conditions in Europe and the Asia-Pacific, according to AgbioInvestor, a Scotland-based consultancy in the agrochemical market. Also read | Tata Chemicals' Europe restructuring helps, but dull soda ash market a worry Nuvama said in a report dated 24 April that elevated channel inventory in domestic trade and patchy demand in international markets for Rallis India compromised near-term growth triggers for the company. The brokerage has a 'reduce' rating on Rallis India as it reckons the challenging business environment may restrict material improvement in return on equity from the stock. Kotak Institutional Equities, which has a 'sell' recommendation on Rallis India, flagged in a report dated 14 April that 'the (fertilizer and agricultural chemicals) industry environment remains difficult, with the tariff war further complicating an already uncertain outlook (for the industry)". Rallis India's management has clarified that only one of its major products, acephate, is subject to the reciprocal tariffs imposed by the US. Even so, domestic institutional investors (DIIs) have been gradually trimming their stake in the Rallis India stock, while foreign institutional investors (FIIs) have been steadily increasing their exposure to it. As per BSE shareholding data, DIIs held a 13.78% stake in Rallis India as of March, down from 14.78% in December 2022, while FIIs raised their holding to 11.41% from 7% in that period. While Nuvama has a price target of ₹182 per Rallis India share, Kotak has raised its target price from ₹210 to ₹230. On Thursday, Rallis India fell 1.23% to ₹318.00 per share on NSE, while the benchmark Nifty 50 inched up 0.53%.
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Business Standard
04-06-2025
- Business
- Business Standard
Jindal Saw, Rallis India, Ugro Capital in focus ahead of June 5 ex-date
Jindal Saw, Rallis India, and Ugro Capital will be in focus today as they will trade ex-date tomorrow, June 5, 2025. In light of the recent announcements regarding corporate action such as dividends, bonus issues, and rights issues, drawing attention from investors. It should be noted that the record date and ex-date for the mentioned stocks are the same. Shares trading ex-date for final dividend Jindal Saw has declared a final dividend of ₹2 per share and Rallis India ₹2.5 per share, according to corporate action data on BSE. These dividends will only be paid to shareholders who own the shares before June 5, 2025, which is the ex-dividend and record date for all four companies. A final dividend is the amount given by a company to its shareholders after the end of its financial year, based on its full-year profits, and approved by shareholders at the Annual General Meeting (AGM). Rights issue Ugro Capital has announced a rights issue involving 2,46,51,744 equity shares with a face value of ₹10 each, amounting to a total issue size of ₹400 crore. The issue price is set at ₹162 per fully paid-up equity share (including a premium of ₹152 per share. The entire issue price will be payable at the time of making the application in the issue. Right entitlement ratio is 50 rights equity shares for every 189 shares held by the eligible shareholders of the company, as on the Record Date. A rights issue is a way for a company to raise additional capital by offering new shares to its existing shareholders, usually at a discounted price, in proportion to their current holdings. The ex-date marks the day a stock starts trading without the eligibility for dividends, bonus shares, stock splits, or rights issues. This means that investors who purchase the stock on or after the ex-date will not be entitled to these benefits. To be eligible, an investor must hold the stock before the ex-date. However, the final list of beneficiaries for dividends, stock splits, or rights issues is prepared by the company based on shareholders recorded at the close of the record date.
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Business Standard
24-04-2025
- Business
- Business Standard
Why this Tata group company's stock slipped 6% in trade today; Details here
Rallis India share price: Shares of Rallis India slipped 6.3 per cent in trade, logging an intraday low at ₹237.9 per share on the BSE. The stock slipped after the company reported weak Q4 results. At 11:57 AM, Rallis India shares were trading 4.73 per cent lower at ₹241.9 per share on the BSE. In comparison, the BSE Sensex was down 0.3 per cent at 79,872.57. The market capitalisation of the company stood at ₹4,704.2 crore. The 52-week high of the stock was at ₹378.4 per share and the 52-week low of the stock was at ₹196 per share. Rallis India Q4 results 2025 The company released its fourth quarter (Q4FY25) results on Wednesday, after market hours. In Q4, the company's net loss widened to ₹32 crore as compared to a loss of ₹21 crore a year ago. In Q3FY25, the company had posted a net profit of ₹11 crore. Its revenue for the quarter under review stood at ₹430 crore as compared to ₹436 crore a year ago, down 1.3 per cent. Rallis India management commentary The company will focus on improving its market share in the domestic business. In Exports and CSM Business, its focus is to expand product offerings and build strategic partnerships. "We will prioritize improving market share in the domestic business. In Exports and CSM Business, our focus is to expand product offerings and build strategic partnerships. We are strengthening our people's capabilities by simplifying organization structure and inducting fresh talent," said Dr Gyanendra Shukla, managing director & CEO, Rallis India Limited. Also Read: Q4 Results Today About Rallis India Rallis India Limited is a subsidiary of Tata Chemicals and a part of the over $165 billion Tata Group. It is one of India's leading agri-science companies, with more than 77 years of experience in serving rural markets with the most comprehensive portfolio of products/solutions for Indian farmers. Rallis is known for its deep understanding of Indian agriculture, sustained contact with farmers, quality agrochemicals, branding, and marketing expertise along with its strong product portfolio in seeds and crop care which is available through a vast distribution network of 7,000 dealers and over 1,00,000 retailers across India.
Business Standard
24-04-2025
- Business
- Business Standard
Rallis India tumbles after Q4 net loss widens to Rs 32 cr
Rallis India dropped 4.53% to Rs 242.40 after the pesticides maker's standalone net loss widened to Rs 32 crore in Q4 FY25 as against a net loss of Rs 21 crore reported in Q4 FY24. Revenue from operations declined 1.37% YoY to Rs 430 crore in the quarter ended 31 March 2025. Loss before exceptional items and tax stood at Rs 41 crore in Q4 FY25, compared to a loss of Rs 29 crore reported in Q4 FY24. The company reported an exceptional profit of Rs 1 crore in Q4 FY25. In Q4 FY25, the company reported a negative EBITDA of Rs 20 crore, compared to a positive EBITDA of Rs 7 crore in the same period a year ago, primarily due to pricing pressure in the Domestic Crop Care segment. Revenue from Crop Care declined by 1.21% YoY to Rs 405 crore in Q4 FY25. B2C Crop Care volumes increased by 3%, while prices dropped by 5% compared to the previous year. Export revenues rose by 6%, driven by a 1% increase in volume and a 5% rise in price. Revenue from the Seeds segment declined by 3.84% to Rs 25 crore in Q4 FY25, compared to Rs 26 crore in Q4 FY24. On a full-year basis, the companys consolidated net profit fell by 15.54% YoY to Rs 125 crore in FY25, while revenue increased marginally to Rs 2,663 crore in FY25 as against Rs 2,648 crore reported in FY24. Dr. Gyanendra Shukla, managing director & CEO, Rallis India, said, The company has reported FY 25 revenue of Rs 2,663 crore and PAT of Rs 125 crore. For Q4 FY 25, revenue is Rs 430 crore with positive volume growth in domestic business. Control over working capital has enabled strong cash flow from operations. I am particularly pleased with the growth of 23% and 24% in the Soil & Plant Health and Herbicides categories, respectively. Our Innovation Turnover Index is in line with our long-term target of 14%. The seeds business had a turnaround with an FY 25 PBT of Rs 18 crore, primarily driven by North Cotton Hybrid Diggaz and cost optimization actions. We will prioritize improving market share in the domestic business. In Exports and CSM Business, our focus is to expand product offerings and build strategic partnerships. We are strengthening our peoples capabilities by simplifying the organizational structure and inducting fresh talent. Our long-term focus continues to be to offer differentiated product offerings which address farmers evolving needs. Continued investments in customer centricity, marketing, manufacturing, and digital capabilities will remain the key to delivering sustainable growth. Meanwhile, the companys board has recommended a dividend of Rs 2.50 per share for the financial year 2024-25. The dividend, if approved by the shareholders at the ensuing Annual General Meeting of the company, will be paid within five days of the AGM. Rallis India is a subsidiary of Tata Chemicals and a part of the US$ 165 billion Tata Group. It is one of Indias leading agro sciences companies, with more than 77 years of experience of servicing rural markets with the most comprehensive portfolio of products/solutions for Indian farmers. It has marketing alliances with several multinational agrochemical companies.
India Today
24-04-2025
- Business
- India Today
Explained: Why Rallis India shares tumbled over 6% after Q4 results
Rallis India shares came under pressure on Thursday after the agri-input maker reported a disappointing set of fourth-quarter numbers. The stock plunged over 6% in early trade before paring some losses to trade 4.9% lower at Rs 241.45 by 9:56 Tata Group company posted a wider net loss of Rs 32 crore for the quarter ended March 31, 2025, compared to Rs 22 crore in the same period last deeper red ink was driven by flat revenues and a rise in operating costs. Quarterly revenue came in marginally lower at Rs 430 crore versus Rs 436 crore in Q4FY24. Full-year performance also reflected strain, with net profit for FY25 slipping to Rs 125 crore from Rs 148 crore a year earlier. Revenue for the year stood nearly unchanged at Rs 2,663 crore compared to Rs 2,648 crore in the earnings drag, the board has recommended a final dividend of Rs 2.50 per share (250% on a face value of Rs 1) for India, a subsidiary of Tata Chemicals, is one of the leading agro-sciences firms in the country. With a wide portfolio of crop protection and agri-input solutions, the company has partnerships with several global agrochemical cost pressures and stagnant revenue growth continue to weigh on its bottom Q4 results have sparked concern among investors about margin stability and future growth prospects in an increasingly competitive agrochemical market.
