July 20, 2017

Rallis India announces financial results for quarter ended June 30, 2017

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, 2017.

Rallis India registered revenues at a consolidated level of Rs463 crore for the quarter ended June 30, 2017, and profit before exceptional items and tax of Rs61 crore, both around the same level as the previous year. Net profit for the period was Rs45 crore against Rs174 crore in Q1 in the previous year, which includes Rs158 crore (before tax) comprising profit on assignment of leasehold rights to a plot of land in the MIDC area, Turbhe, Navi Mumbai.

Standalone revenues at Rs265 crore was lower than previous year’s Q1 revenue of Rs278 crore while net profit stood at Rs1 crore against Rs127 crore, which included the exceptional item as mentioned above.

Revenues of Metahelix, at Rs226 crore, grew 13 percent over the previous year’s Q1 revenue of Rs200 crore. Profit before tax, at Rs57 crore, rose 25 percent vis-à-vis Rs45 crore in the previous year.

Commenting on the performance and developments, V Shankar, CEO and MD, Rallis India, said, “I am pleased that rains have covered the entire country and the forecast is of a normal monsoon. A good Kharif season will buoy the farmer sentiments and improve farm income required to boost agriculture. Sowing progress is satisfactory, with crops such as pulses, cotton, paddy, etc., having increased acreage. The quarter is the important one for our seeds business, which has registered commendable performance. In the crop protection segment though we have witnessed destocking by dealers ahead of GST implementation and down-trading by farmers. Consequently placement was muted during Q1 compared to the regular scale, which has since picked up in July 2017”.

“Our recently launched products, EPIC, QUEST, SUMMIT, NEONIX, among others, have received encouraging response from farmers, strengthening the portfolio. The company has embarked on a roll out of its agri-solutions platform, Rallis Samrudh Krishi,® to improve farmer’s crop productivity and value for farmers. These are supported by certain digital interventions, including Rallis Krishi Samadhan app for the farming community and Drishti a predictive analytics system to provide current and forecasted information on crop health, pest/disease, soil moisture, crop acreage, crop yield, crop fertiliser requirements, etc. I do believe that these initiatives will facilitate better cropping and add value to our farmers”

“International business has performed in line with expectations, and I am pleased that we have begun receiving commercial orders on a new contract manufacturing business,” Mr Shankar added.

Rallis India’s Board of Directors has accorded its consent to the merger of Zero Waste Agro Organics (a wholly owned subsidiary of the company) with the company under a Scheme of Amalgamation, subject to necessary statutory approvals from various regulatory authorities.

The company has signed an agreement to sell its entire shareholding, comprising 1,82,86,000 equity shares of the face value of Rs10 each, held by the company in Advinus Therapeutics (Advinus) (comprising 13.68 percent of the equity share capital of Advinus), to Eurofins Pharma Services Lux Holding SARL, for a consideration of Rs9.47 per equity share, aggregating Rs17.32 crore on July 20, 2017. The fair value change of Rs1.41 crore (net of taxes and incidental expenses) in the value of the investment has been accounted for in the Other Comprehensive Income during the quarter ended June 30, 2017.