Near-term outlook: Monsoon is key for the Indian agricultural sector. The stock will closely track the progress of the monsoon in the near term Rallis India reported muted revenues of Rs 4.5bn (-1% YoY) in 1QFY18, as the domestic pesticides business was impacted by destocking ahead of GST implementation, and down-trading by farmers. However, the seeds business (Metahelix) reported strong revenue growth of 13% YoY at Rs 2.3bn, and PBT at Rs 570mn (+27% YoY). EBITDA declined to Rs 694mn (-8% YoY), led by higher employee costs and other expenses. Consequently, APAT was at Rs 454mn (-5% YoY).