October 24, 2017

Rallis India posts profit of Rs77 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, 2017.

According to the requirement of Ind AS and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, revenue for the corresponding previous quarters ended June 30, 2017, and September 30, 2016, for the six months ended September 30, 2016, and year ended March 31, 2017, were and are reported inclusive of excise duty.

The Government of India has implemented Goods and Service Tax (GST) from July 1, 2017, replacing excise duty, service tax and various other indirect taxes. As per Ind AS 118, the revenue for the quarter ended September 30, 2017, is reported net of GST.

Consolidated Key Highlights – Q2

Rallis registered revenues of Rs588 crore (on the same basis PY Rs539 crore) for the quarter ended September 30, 2017.  Profit before tax (before exceptional items) was at Rs112 crore (PY Rs96 crore); total comprehensive income was at Rs77 crore (PY Rs65 crore).

Commenting on the performance and developments, V Shankar, managing director and CEO, Rallis India, said, “The Southwest monsoon on cumulative basis was near normal at 95 percent of long period average, but only 65 percent of area received normal rainfall. Cropping acreages, however, were nearly same as last year, except cotton. Our broad-based portfolio of solutions and robust farmer relationship has driven our revenue growth during the quarter. A combination of right product mix as well as cost control measures had resulted in healthier quality of operations during the quarter.”

“Rallis Samrudh Krishi ® endeavour was rolled out all over the country supported by a slew of digital initiatives. During the quarter, we introduced three new products Cenator (fungicide for the management of sheath blight in Paddy), Pulito (a broad spectrum fungicide on fruits and vegetables) and Odis (a broad spectrum insecticide for the management of sucking pest), which have started to receive 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. We also witnessed a positive impact of advancing of some orders to the second quarter.

I do hope with normal forecast for Northeast monsoon and improving reservoir water level we would have a better Rabi season,” Mr Shankar added.