Domestic revenue grew 35% YoY and exports revenue were up 24% YoY. Revamped channel policies have in-turn resulted into a stable performance both in the agrochemicals and seed business in the domestic market. Rallis India launched 2 new formulation products in domestic market, taking the total to 6 in 9MFY20.
Improved farm sentiments, improved dealer terms, new product launches and capacity expansion will drive future growth for the company. It has planned capex of Rs.8bn over next 5-6 years as compared to Rs.6.7bn over last 10 years.
Positive catalysts like buoyant farm sentiments and improved crop prices are expected to persist in the near term. Rallis is set to regain market share by new product launches. Declining RM cost scenario will also help improve margins.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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