Rallis India dips on disappointing June quarter results

Rallis India has dipped 6% to Rs 238 on the NSE after reporting a 10.8% year-on-year (YoY) decline in its consolidated net profit at Rs 33 crore for the quarter ended June 30, 2015 (Q1), due to flat sales.

The company, engaged in agrochemicals business, had posted a profit of Rs 37 crore in the same quarter a year ago.

Consolidated net sales of the company remained flat at Rs 464 crore in the June quarter against Rs 465 crore in the previous year's corresponding quarter.

Analysts, on an average, had expected a profit of Rs 48 crore and sales of Rs 535 crore for the quarter.

Due to adverse climatic conditions and lower crop commodity prices globally, there has been a lower requirement of certain products in the international market. This impacted offtake of some key products and we expect pick-up in the second half of the year, said Mr. V Shankar, managing director and CEO of Rallis India.

The stock opened at Rs 233 and touched a low of Rs 229 on the NSE. A combined 841,893 shares changed hands on the counter on the NSE and BSE till 10:41 am.

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