The call was addressed by Sanjiv Lal MD and CEO of the company.

Highlights of the call

The company incurred one-time charge of Rs 7.2 crore on account of retiral benefits and Rs 5 crore contribution to electoral fund in the standalone accounts.

The company witnessed tough conditions in the domestic business.

Rallis is reorienting and is committed to continued investments to grow the business.

Rallis is putting in place various measures to strengthen its market position and distributor network while stepping up the R&D effort in bringing new products for the domestic market.

There has been strong growth in international business and this momentum is expected to continue.

International business and seeds business grew by 36% and 5% respectively.

Rallis has marketing alliances with several multinational agrochemical companies.

It enjoys healthy margins in international business.

Despite tough market conditions, domestic business was maintained at the same level.

Investments and capacity expansion at its Dahej site is presently underway to meet the growing demand of international customers.

The management remains confident of growth trajectory on the basis of proactive efforts.

It has revised channel credit policies and revamped motivation incentives schemes from 1 April 2019.

The company is facing cash flow issues in the rural markets but it has placed good risk mitigation process.

Specialty product launches will continue to remain in focus.

IMD has given projection for normal monsoon so the management is hoping for a great season.

The company is focusing on strengthening its product portfolio.

It has existing pipeline of 11-12 products to be launched in next few years. It will launch 5 products in FY2020. All these 5 products will be novel products.

In seeds business the company has strong presence in kharif crops and is working to increase its presence in rabi crops. This will also reduce seasonality.

In international business it is scaling up production of molecules where there is potential of clear growth.

The company has strong footprint in Western and Southern markets and is looking to increase its presence in Northern and Eastern markets.

The management has taken cognizant of price increase of its raw materials and will take corrective steps as and when required. The whole industry is suffering due to higher raw material price.

It has introduced policies which will help the company regain growth in domestic markets.