India: Weak Kharif Season Ups Earnings Challenges for Agrochemical Companies
Rallis India Ltd reported an impressive 23.8% rise in June quarter net profit, writes Clifford Alvares for LiveMint.com. The company’s international business drove the earnings. Thanks to good demand for its key products, export revenue grew 12%, topping the 8.8% rise in total revenue. But performance in India, its key business area, lagged, with revenue falling 2% from the year-earlier quarter.
Another agrochemicals firm, Dhanuka Agritech Ltd, which largely focuses on the domestic market, reported a subdued performance for the June quarter with revenue growing a mere 3%. The constrained performances underscore the weak progress of the monsoon.