Rallis India, a subsidiary of Tata Chemicals and a leading agri-input solutions provider, witnessed a 5.97% decline in net profit for the recent period. The company reported a net profit of Rs 22.55 crore, down from Rs 39.55 crore in the corresponding quarter of the previous year. The announcement impacted Rallis India’s stock price, causing it to drop by over 6%.
The decline in profit can be attributed to various factors, including erratic rainfall patterns in the domestic market and headwinds in the international business. Despite these challenges, Rallis India experienced marginal revenue growth, with a 0.3% increase over the previous year. The company’s domestic crop protection business grew by 7.7%, while the crop nutrition business witnessed a growth of 22%.
The stock’s performance has been mixed, trading higher than the 100-day and 200-day moving averages but lower than the 5-day, 20-day, and 50-day moving averages. The relative strength index (RSI) of the stock stands at 50.9, indicating a neutral position. However, Rallis India shares have seen a year-on-year decline of 20.53%.
Despite the recent decline, analysts remain divided on the prospects of Rallis India’s stock. Some analysts expressed disappointment with the Q3 earnings, while others maintained a positive outlook for the company. Investors and traders will be closely monitoring the stock’s performance in the upcoming trading sessions.
Rallis India’s management acknowledged the challenges faced in the recent quarter but expressed optimism about the company’s long-term growth prospects. The focus remains on enhancing the company’s presence in the domestic market and overcoming obstacles in the international business segment.