Rallis India, a subsidiary of the Tata group, has reported a year-on-year increase of 13.88% in its third-quarter profit after tax (PAT) to Rs 82 crore ($11.1 million), bucking the trend of a 12.51% decline in operational revenue to Rs 832 crore ($112.8 million). The dip in revenue was attributed to weak export demand, falling prices, and inconsistent domestic weather patterns.
The company's CEO, Sanjiv Lal, attributed the improved margins to strategic cost reductions and an optimized product mix across various divisions. Despite a decrease in crop care revenue due to lower exports, robust sales of cotton hybrids from the seeds division helped to offset losses. This boost was aided by the operations at the Dahej plant in Gujarat.
Amid El Nino conditions and a soft Global Agchem demand due to inventory overhang, Rallis India remains cautious about both domestic and international markets. The firm anticipates a rebound only after Q3 FY24.
The company's long-term expansion strategy is centered on product diversification, market expansion, increasing manufacturing capacities, and digitalization of operations. This strategic direction reflects the company's commitment to growth despite current market challenges.
In line with the mixed financial results and market sentiment, Rallis India's shares closed at Rs 206.50 ($2.80) on BSE, marking a slight dip of 1.05%.
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