July 22, 2016

Rallis India Q1 consolidated revenues up 7 percent; profits from operations rise 38 percent

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

Consolidated key highlights – Q1
Rallis total revenues from operations were up by 7 percent to Rs468 crore (Rs437 crore previous year) for the quarter ended June 30, 2016. Profit before tax (before exceptional items) rose 38 percent to Rs62 crore (Rs45 crore previous year).

Profit before tax at Rs221 crore (Rs45 crore previous year) included 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, to Ikea India. The profit is net of costs including a premium levied under the repealed Urban Land (Ceiling and Regulation) Act 1976, which has been paid under protest.

During the quarter, the company's wholly-owned subsidiary Metahelix Life Science (Metahelix) has entered into an arrangement with an Indonesian local partner. Metahelix holds 65.77 percent shares in the entity named PT Metahelix Lifesciences Indonesia.

Standalone key highlights – Q1
The company’s total revenue from operations was at Rs278 crore (Rs274 crore previous year), for the quarter ended June 30, 2016. Profit before tax (before exceptional items) was at Rs15 crore (Rs 10 crore previous year). Current year profit before tax was at Rs173 crore, which included exceptional income as stated above to the extent of Rs158 crore relating to profit on assignment of leasehold rights to a plot of land in the MIDC area, Turbhe, Navi Mumbai to Ikea India.

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.

Commenting on the performance and developments, V Shankar, MD and CEO, Rallis India, said, “I am happy that the Kharif season has picked up on a better note now with the southwest monsoon having covered whole of India by July 13. This has given a fillip to the sowing which as on date is up by 3 percent. The onset of monsoon was delayed and the progress in June was sluggish leaving a 11 percent deficit by end of the month. This impacted progress of the season which was accentuated by a sharp drop in cotton planting. Consequently demand and placement was muted during Q1, which has picked up in July”.

Commenting further on the seeds business Mr Shankar added, "I am pleased with the performance of Metahelix with seeds revenues rising by 15 percent to Rs200 crore (Rs175 crore previous year). Profit at Rs47 crore (Rs36 crore previous period) registered an increase of 32 percent driven by higher volumes and better operating efficiencies".

During the quarter, the company introduced a new age product ’SUMMIT’; a patented, green label novel insecticide positioned for the cotton, chilli and soybean segments. The recently launched herbicides, Panida Grande and Mark, have received encouraging response from farmers strengthening the portfolio in herbicides.

The quarter's performance also reflects the improved quality of operations in margins as well as benefit of better working capital management resulting in lower finance costs.

Annexure 1: Intimation of appointment of directors