October 24, 2016

Rallis India Q2 revenues rises 20 percent to Rs588 crore; net profit up by 31 percent at Rs67 crore

Mumbai: Rallis India, a Tata enterprise and a leading player in the Indian crop protection industry, announced its financial results for the quarter ended September 30, 2016.

Consolidated key highlights – Q2
Rallis registered revenues of Rs588 crore (Rs490 crore) up by 20 percent for the quarter ended September 30, 2016. Profit before tax (before exceptional items) at Rs96 crore (Rs76 crore) rose by 27 percent; total comprehensive income at Rs65 crore increased 32 percent over last year.

Consolidated key highlights – H1
The company totalled revenues of Rs1,051 crore (Rs924 crore) recording increase of 14 percent for the six months ended September 30, 2016. Profit before tax (before exceptional items) was at Rs158 crore (Rs121 crore) up by 31 percent. During this period, profit was at Rs317 crore (Rs121 crore) including an exceptional item of Rs158 crore comprising profit on assignment of leasehold rights to a plot of land in the MIDC area, Turbhe, Navi Mumbai. This profit is net of costs including a premium levied under the repealed Urban Land (Ceiling and Regulation) Act 1976, which has been paid under protest. Total comprehensive income was at Rs239 crore (Rs92 crore).

Commenting on the performance and developments, V Shankar, managing director and CEO, Rallis India, said, “I am happy to report an improved performance on the back of a normal monsoon during this Kharif season. While the distribution was not particularly even, with long dry spells coupled with floods in some areas, the cropping acreages has been up in most crops. Yields are expected to be better and estimates point towards a record Kharif production. Our broad based portfolio of solutions and robust farmer relationship have been instrumental in driving our revenue growth during the quarter. Despite market challenges and pricing pressure our quality of operations stood ground driven by our strong brands and field activities.   
                           
“During the quarter, we introduced Epic (a broad-spectrum fungicide with WDG formulation for the management of sheath blight and sheath rot in paddy) and Quest (a specialty insecticide for the management of white flies in cotton) which have received encouraging response from farmers. Our performance in the international business was also buoyed by the improving situation in key markets such as Brazil and strong demand for herbicides.

“Our focus on working capital and costs continued reflecting the improved quality of operations as well as higher cash generation and lower finance costs. I do expect with improved reservoir water level and good farmer sentiments we would have a better Rabi season.”

Note on IND AS:
The company adopted Indian Accounting Standards (Ind AS) from April 1, 2016, and accordingly these financial results have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS 34 Interim Financial Reporting prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and the other accounting principles generally accepted in India. Financial results for all the periods presented have been prepared in accordance with the recognition and measurement principles of Ind AS 34.