The Tata Group’s Rallis India Limited, India’s largest agrochemicals company, has posted an impressive improvement in its unaudited financial results for the third quarter ended December 31, 2001.

While sales remained at the same level as the corresponding quarter of the previous year, profit before tax increased to Rs 12.69 crore (after providing Rs 4.91 crore as contingency reserves) as against a loss of Rs. 8.69 crore for the corresponding period of the previous year.

For the nine-month period ended December 31, 2001, sales have declined to Rs 792 crore from Rs 850 crore, but profit before tax has increased to Rs 32.21 crore from a loss of Rs 29.65 crore for the corresponding period of the previous year. Of this, while the operating profit is Rs 14.07 crore, the balance of Rs 18.14 crore came from the sale of its pharmaceutical business.

The company has been on a major restructuring and re-engineering drive aimed at focusing its business and product mix, enhancing efficiencies in business processes, improving supply chain management, aggressive cost cutting at all levels, and human resource development. These initiatives have resulted in improved margins, a better product mix, and increased productivity.

In addition, better working capital management and introduction of new products have also helped the turnaround in the company’s financial performance.