RALLISNSEJanuary 17, 2025

Rallis India Limited

1,775words
8turns
0analyst exchanges
0executives
Key numbers — 40 extracted
3 million
of Customers No. of Farmers Connected with Brand: 4,975; DIB: 45+; Exports: 75+ Brand: 2,765 ~3 million ~4 million DIB: Domestic Institutional Business; CSM: Custom Synthesis and Manufacturing 1. Rall
4 million
s No. of Farmers Connected with Brand: 4,975; DIB: 45+; Exports: 75+ Brand: 2,765 ~3 million ~4 million DIB: Domestic Institutional Business; CSM: Custom Synthesis and Manufacturing 1. Rallis Innovatio
80%
s.) 12 4 15 4 11 Serving Farmers through Science Crop Care Seeds Common 2 Domestic reach 80% Districts Global access 70+ Countries “Crop Nutrition” will be referred to as ”Biologicals & Spec
₹ 100
nted and high growth segments. Higher no. of new launches in Herbicides Creating Power Brands: ₹ 100+ Cr each; Tail brand reduction Crop Care - Innovation Turnover Index 16% 16% 12% 11% 13% Far
16%
reating Power Brands: ₹ 100+ Cr each; Tail brand reduction Crop Care - Innovation Turnover Index 16% 16% 12% 11% 13% Farmer Meeting Our ambition is to deliver minimum 15% ITI Retailer Club Meet
12%
wer Brands: ₹ 100+ Cr each; Tail brand reduction Crop Care - Innovation Turnover Index 16% 16% 12% 11% 13% Farmer Meeting Our ambition is to deliver minimum 15% ITI Retailer Club Meeting 4 FY2
11%
rands: ₹ 100+ Cr each; Tail brand reduction Crop Care - Innovation Turnover Index 16% 16% 12% 11% 13% Farmer Meeting Our ambition is to deliver minimum 15% ITI Retailer Club Meeting 4 FY20 FY
13%
: ₹ 100+ Cr each; Tail brand reduction Crop Care - Innovation Turnover Index 16% 16% 12% 11% 13% Farmer Meeting Our ambition is to deliver minimum 15% ITI Retailer Club Meeting 4 FY20 FY21 F
15%
ovation Turnover Index 16% 16% 12% 11% 13% Farmer Meeting Our ambition is to deliver minimum 15% ITI Retailer Club Meeting 4 FY20 FY21 FY22 FY23 FY24 Copyright © Rallis India Limited. All r
rs 6
on” will be referred to as ”Biologicals & Specialty solutions” Aquafert Vegetable launch with Dealers 6 Copyright © Rallis India Limited. All rights reserved. 6 SEEDS BUSINESS in research, Engaged
₹2212
allis India Limited. All rights reserved. 8 FINANCIAL SNAPSHOT - Q3 AND 9M FY25 REVENUE 9MFY24: ₹2212 Cr; 9MFY25 ₹2233 Cr EBITDA 9MFY24: ₹304 Cr; 9MFY25 ₹306 Cr 928 832 782 783 598 522 110 96
₹2233
ed. All rights reserved. 8 FINANCIAL SNAPSHOT - Q3 AND 9M FY25 REVENUE 9MFY24: ₹2212 Cr; 9MFY25 ₹2233 Cr EBITDA 9MFY24: ₹304 Cr; 9MFY25 ₹306 Cr 928 832 782 783 598 522 110 96 166 133 61 44
Guidance — 8 items
Bio-Pesticides
opening
Reduce chemical use Promoting Bio-diversity Expanding Horizons to Offer comprehensive suite of Biologicals & Specialty solutions (BSS) that support regenerative agriculture Field visit for Surplus promotion “Crop Nutrition” will be referred to as ”Biologicals & Specialty solutions” Aquafert Vegetable launch with Dealers 6 Copyright © Rallis India Limited.
Bio-Pesticides
opening
7 Q3 AND 9M FY25 RESULTS DOMESTIC CROP PROTECTION EXPORTS CROP PROTECTION CUSTOM SYNTHESIS MANUFACTURING BIOLOGICALS & SPECIALTY SOLUTIONS SEEDS 8 Copyright © Rallis India Limited.
Bio-Pesticides
opening
8 FINANCIAL SNAPSHOT - Q3 AND 9M FY25 REVENUE 9MFY24: ₹2212 Cr; 9MFY25 ₹2233 Cr EBITDA 9MFY24: ₹304 Cr; 9MFY25 ₹306 Cr 928 832 782 783 598 522 110 96 166 133 61 44 Q1 Q2 Q3 FY24 FY25 Q1 Q2 Q3 FY24 FY25 • Q3 Revenue is down by 13% vs Q3 PY • • Crop Care revenue down by 13% vs Q3 FY24.
Bio-Pesticides
opening
98 82 63 48 24 11 Q1 Q2 Q3 FY24 FY25 • PAT down by 56% vs Q3 FY24 due to lower EBITDA Amounts for the current and previous periods are rounded off to the nearest ₹ crores Copyright © Rallis India Limited.
Bio-Pesticides
opening
Positive volume growth in Domestic business 9 FINANCIAL SNAPSHOT - Q3 AND 9M FY25 CROP CARE ₹ Cr.
Bio-Pesticides
opening
10 FINANCIAL SNAPSHOT - Q3 AND 9M FY25 SEEDS REVENUE 9M FY24: ₹390 Cr; 9M FY25 ₹393 Cr EBITDA 9M FY24: ₹40 Cr; 9M FY25 ₹63 Cr PAT 9M FY24: ₹24 Cr; 9M FY25 ₹34 Cr ₹ Cr.
Bio-Pesticides
opening
263 222 141 95 32 30 Q1 Q2 Q3 FY24 FY25 52 48 31 6 Q1 Q2 Q3 -18 -16 FY24 FY25 • In a small quarter, Seeds revenue down by 7% vs Q3 FY24 largely due to drop in Hybrid Mustard market demand • EBITDA improved by 11% in Q3FY25 over Q3FY24 due to increased GC margin and better cost management 35 30 18 3 Q1 Q2 Q3 -14 -14 FY24 FY25 • PAT in-line with the Q3 FY24 Amounts for the current and previous periods are rounded off to the nearest ₹ crores Copyright © Rallis India Limited.
Bio-Pesticides
opening
12 SUSTAINABILITY GOALS ALIGNED TO TATA GROUP’S FLAGSHIP PROJECT “AALINGANA” 30% reduction in absolute CO2 footprint by 2030 Double the Renewable Energy by 2025 Zero landfill by 2030 100% replenishment of fresh water Focusing on environment- friendly portfolio Develop Climate resilient traits 13 Copyright © Rallis India Limited.
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Risks & concerns — 3 flagged
Boost plant performance Stress tolerance
Bio-Stimulants
Seeds revenue down by 7% vs Q3 FY24 Flat revenue in 9M due to weak export demand • • EBITDA down by 27% vs Q3 FY24.
Bio-Pesticides
Volume drop and pricing pressure in exports impacted margins Actions continue to be taken to control overheads PAT 9MFY24: ₹169 Cr; 9MFY25 ₹157 Cr ₹ Cr.
Bio-Pesticides
Speaking time
OVERALL
1
Creating Power Brands
1
Bio-Fertilizers
1
Bio-Stimulants
1
Specialty Micronutrients
1
Organic Fertilizers
1
Water Soluble Fertilizers
1
Bio-Pesticides
1
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Opening remarks
OVERALL
B2B (Domestic, Exports, CSM): B2C (Domestic Brand): WIDEN REACH, EXTEND PORTFOLIO OFFERINGS TARGETED R&D INVESTMENTS DIGITAL / DATA DRIVEN ORGANIZATION CULTURE FOCUS ON COST COMPETITIVENESS BUILD STRATEGIC ALLIANCES CAPTURE UNDERSERVED CROP PROTECTION SEGMENTS PLUG PORTFOLIO GAPS IN MAIZE, PADDY INTENSIFY CUSTOM SYNTHESIS MANUFACTURING ENHANCED FOCUS ON BIOLOGICALS & SPECIALITY SOLUTIONS EXTEND NORTH COTTON SUCCESS TO OTHER MARKETS Customer Centricity. Leveraging Digital, Collaborations and Alliances 3 Copyright © Rallis India Limited. All rights reserved. 3 DOMESTIC CROP PROTECTION • Portfolio expansion • Widen reach • Digital as multiplier Comprises of domestic branded formulations and Inst business (Herbicides, Insecticides, Fungicides) Deepen customer relationships leveraging digital Participate in under- represented and high growth segments. Higher no. of new launches in Herbicides
Creating Power Brands
₹ 100+ Cr each; Tail brand reduction Crop Care - Innovation Turnover Index 16% 16% 12% 11% 13% Farmer Meeting Our ambition is to deliver minimum 15% ITI Retailer Club Meeting 4 FY20 FY21 FY22 FY23 FY24 Copyright © Rallis India Limited. All rights reserved. 4 EXPORTS BUSINESS Export of Catalogue products (Active Ingredients, Formulations) and Custom Synthesis Manufacturing (CSM) Committed to expand product and customer portfolio in CSM Strengthening R&D, process scale-up and manufacturing Intensify Building Strategic Alliances with Key Players Upgrading pilot plants to strengthen process scale-up capabilities Crop Care B2B CSM Increased Global outreach to 70+ countries Catalogue Products Manufacturing Prowess Crop Care B2B Priorities: • • • • Customer base expansion Strategic alliances Focus on CSM R&D, Process scale-up 5 Copyright © Rallis India Limited. All rights reserved. 5 MPP, Dahej BIOLOGICALS & SPECIALITY SOLUTIONS
Bio-Pesticides
Reduce chemical use Promoting Bio-diversity Expanding Horizons to Offer comprehensive suite of Biologicals & Specialty solutions (BSS) that support regenerative agriculture Field visit for Surplus promotion “Crop Nutrition” will be referred to as ”Biologicals & Specialty solutions” Aquafert Vegetable launch with Dealers 6 Copyright © Rallis India Limited. All rights reserved. 6 SEEDS BUSINESS in research, Engaged development, production, processing and distribution of hybrid seeds for field crops Field Crops: Paddy, Maize, Millet, Cotton, Mustard and Wheat. This is also supported through in-licensing partnerships with leading players focus on We have our high-growth developing crop across segments categories continue & strengthening our presence in emerging channels CUSTOMER CENTRIC PARTNERING INVESTMENT PRODUCT DEVELOPMENT (FIELD TESTING) CATEGORY MANAGEMENT Germplasm Sourcing Growers & Organizers Institutional Collaboration PORTFOLIO STRENGTHENING Out-licensing Asset Light Model In-l
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