April 25, 2017

Rallis India's revenues for financial year ended March 2017 show 10 percent rise; profits up 19 percent

Consolidated key highlights – FY17

Rallis India (hereon referred to as Rallis) recorded revenues of Rs1,783 crore (Rs1,628 crore) for the year 2016-17, registering an increase of 10 percent. Profit before tax (before exceptional items) was at Rs222 crore (Rs186 crore), up 19 percent.

During the year, profit at Rs380 crore (Rs186 crore) 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. This profit is net of costs including a premium levied under the repealed Urban Land (Ceiling and Regulation) Act 1976, which has been paid under protest.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 Rs297 crore (Rs147 crore).

Consolidated key highlights – Q4

Rallis registered revenues of Rs367 crore (Rs371 crore) for the quarter ended March 31, 2017. Profit after tax was at Rs31 crore (Rs34 crore) and total comprehensive income was at Rs32 crore (Rs35 crore).

Standalone key highlights – FY17

The company recorded revenues of Rs1,505 crore (Rs1,387 crore), registering an increase of 9 percent for the year ended March 31, 2017. Profit before tax (before exceptional items) was at Rs201 crore (Rs165 crore), up 22 percent.

Total comprehensive income was at Rs266 crore (Rs126 crore), which included profit on assignment of leasehold rights to a plot of land in the MIDC area, Turbhe, Navi Mumbai.

Standalone key highlights – Q4

Rallis registered revenues of Rs346 crore (Rs345 crore) for the quarter ended March 31, 2017. Profit before tax (before exceptional items) was at Rs43 crore (Rs44 crore) and total comprehensive income was at Rs33 crore (Rs33 crore.)

Commenting on the performance, V Shankar, managing director and CEO, Rallis, said, “I am pleased that our overall performance was in line with previous year in Q4. The below-normal northeast monsoon severely affected the key southern states, with 30 reservoirs in the regions below 40 percent storage levels. Overall, rabi cropping acreages are up 5 percent, except paddy which is down 12 percent.

During the quarter, we introduced Neonix - a seed treatment solution against soil borne insect and disease complex for groundnut. Our brands, such as Ergon, Summit, Mark, Epic, Zeeny and Panida Grande, have registered good growth in 2016-17 and will be key drivers of growth going forward.

We continued with our focus on working capital and placing stocks to align with market requirements. Rallis continues to be near-zero debt status with emphasis on cash.

In line with our promise to our customers – ‘Enhancing Farm Prosperity, Building Relationships’ – we have launched Rallis Krishi Samadhan app for farming community, to provide a one-stop solution for most of the farming needs.

The forecast for normal monsoon augurs well for the coming kharif season. International business has performed in line with expectations. We have been qualified for couple of new businesses in contract manufacturing.”