Gyanendra Shukla, MD and CEO of the integrated crop care and seed company explained that while the industry typically grows at 5-7%, their goal is to surpass this rate.
“But more importantly, I am expecting significant improvement in return on capital with the combination of portfolio adjustment as well as some of the cost-cutting measures we take. So, I expect at least 500 basis point margin improvement in the next four to five years,” he said.
Shukla also highlighted that Rallis operates in multiple segments, including domestic crop protection, export crop protection, biologicals, and seeds. The domestic business performed well in volumes (October-December 2024 – Q3FY25), but the export market faced challenges due to low global commodity prices and legacy product issues.
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The company is focusing on improving its seed and biological portfolio, addressing weaknesses in the herbicide business, and generating more demand in the domestic market, he added.
Rallis India reported a weaker performance in Q3FY25 compared to the same period last year. The company’s net profit dropped by 54.2% to ₹11 crore from ₹24 crore, while revenue declined by 12.7% to ₹522 crore from ₹589 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also fell by 29% to ₹44 crore from ₹62 crore. The EBITDA margin decreased to 8.4% from 10.4% year-on-year.
The market capitalisation of Rallis India is around ₹3,996.34 crore. Its shares have declined close to 17% in the past year.
For the entire interview, watch the accompanying video
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(Edited by : Unnikrishnan)
