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Rallis India’s tepid fourth quarter underscores the weary effects of virus

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Rallis India Ltd’s weak performance in the March quarter (Q4) did not upset investors much. The stock is more or less flat since its results announcement last week.

Note that the company’s profit almost halved from the year-ago period, even as revenue growth dropped to merely 2%. The impact of the covid-19 lockdown is already weighing on the company’s performance.

Operations were disrupted at some manufacturing facilities. Due to logistics constraints, Rallis was unable to ship products worth ₹69 crore.

A large part of the revenue loss is due to deferment of exports ( ₹53 crore of the ₹69 crore). Even so, the 2% growth on a favourable base of 8% revenue fall in the year-ago quarter is uninspiring.

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