Shares of Tata Group company, Rallis India, fell as much as three percent after the company reported a disappointing set of numbers for the quarter ended June.

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Profit after tax came in at Rs 67 crore as compared to the previous year’s Rs 82 crore, a fall of 18 percent.

At 11:15 IST, shares of the agro sciences company were trading 1.9 percent lower at Rs 204.6 on the BSE.

The subsidiary of Tata Chemicals, posted a revenue of Rs 863 crore for the quarter ending June 30, 2022, which means an increase of 16.5 percent over last year’s Rs 741 crore. This was driven by about 12 percent price growth and 5 percent growth in volume.

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According to ICICI Direct Research, the company has been able to register strong growth in the international market, while delays in monsoon led to lower growth in the domestic market.

“We expect domestic business can witness a strong rebound in the second quarter due to healthy rainfall during July. In terms of RMAT (raw material) inflation, the company is able to pass on input inflation partly. We expect higher agricultural commodity prices, in turn, to improve farm income and thereby increase the ability of the company to pass on input inflation in the upcoming quarter,” the domestic brokerage firm said.

“This should normalise gross margins ahead, however any material increase in the input inflation or crude henceforth can impede operational growth during this fiscal as well,” it added.

Crop Care segment

Revenue growth in the crop care segment was at 26.5 percent. The margins in the domestic business of crop care were maintained despite pressures due to cost inflation, high-cost inventory, and competitive pricing. The domestic business grew by 17 percent year on year while the growth in the export business was nearly 51 percent for the reporting quarter over the previous year.

Seeds segment

Revenue in this segment came in at Rs 267 crore, which remained almost the same as the previous year.

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(Edited by : Abhishek Jha)