Capitaline

Analyst Meet / AGM 17-Jan-20

Conference Call

Rallis India

Capex of Rs 800 crore over next couple of years

Rallis India held a conference call on 17 January 2020 to discuss the results for the quarter ended December 2019 and way forward. Mr. Sanjiv Lal- Managing Director & CEO, Mr. S. Nagarajan- Chief Operating Officer and Mr. Ashish Mehta- Chief Financial Officer of the company addressed the call.
Highlights of the Concall

Consolidated sales rose 28% to Rs 533.6 crore led by positive farmer sentiments in domestic market supported by good monsoon which resulted in increased acreage for current rabi crops YoY as well as good produce pricing in the market.

Total revenue for the crop protection and crop nutrient business during Q3FY20 was 503 crore and registered a growth of 30% over previous year. Majority of the growth is coming from volume growth across domestic business and international business. However the company did see price correction in some molecules in both domestic as well as international market.

In international market the company saw good volume growth in Acephate and Metribuzin but there was pricing pressure from competitors which resulted into price correction and the pressure is expected to continue in Q4FY20 as well.

Seeds business registered a modest growth for the quarter largely coming from Paddy, Millet and Vegetable.

OPM was higher due to higher contribution coming through volume growth across businesses and reduction in raw material cost

The company launched two products during the quarter in crop protection and is on track to launch 1 additional product during the fiscal (total new introductions in the year is 7)

The company plans to introduce 2 new products every year over the next few years.

The new trade terms that the company introduced in Q1FY20 accepted well by the partners and continue to support its partnership with distributors and have also impacted positively in its cash flow.

Rallis has approved setting up of a new state of the art R&D facility in Bengaluru to drive further growth

In seeds business the company current product basket is more skewed towards kharif crops and now the company is building up its presence in rabi segment by focusing especially on maize and mustard crops. The company is also working towards developing its vegetable portfolio.

International business is seeing a good traction underpinned by new product registration in Latin America, North America and Asia. The company is currently working for two molecules for contract manufacturing and is undertaking steps to leverage its tieups with global innovators to expand this business which currently is restricted to two molecules.

The company has proposed capex of Rs 800 crore over next couple of years for strengthening its domestic and international business.

Metribuzin Phase II expansion of 500MTPA is expected to be commercialized by Feb, 2020 and will see full utilization in next financial year. Overall expenditure incurred towards Metribuzin capacity is Rs 25 crore.

The progress in setting up of new formulation plant at chemical zone Dahej is satisfactory and expect commercial production expected to start by FY 21.

To meet the demand of some of its existing products and build up facilities for future requirement the board formally approved an investment of Rs 150 crore for special projects for capacity expansion and its part of Rs 800 crore expansion plans.

Previous News

Rallis India Ltd leads gainers in 'A' group
( Hot Pursuit - 10-Jun-24 12:00 )

Board of Rallis India approves proposal for capacity addition of Pendimethalin plant
( Corporate News - 23-Jan-24 16:49 )

Volumes soar at G R Infraprojects Ltd counter
( Hot Pursuit - 07-Mar-24 14:30 )

Volumes spurt at Rallis India Ltd counter
( Hot Pursuit - 20-Oct-22 14:31 )

Rallis India slides as Q1 PAT drops 24% YoY to Rs 48 crore
( Hot Pursuit - 19-Jul-24 13:38 )

Rallis India gains on good Q1 outcome
( Hot Pursuit - 20-Oct-22 12:19 )

Rallis India Ltd leads gainers in 'A' group
( Hot Pursuit - 20-Oct-22 12:01 )

Rallis India standalone net profit declines 5.97% in the June 2023 quarter
( Results - Announcements 15-Jul-23 17:52 )

Rallis India consolidated net profit rises 1149.23% in the March 2021 quarter
( Results - Announcements 22-Apr-21 19:45 )

Board of Rallis India recommends Final Dividend
( Corporate News - 21-Apr-22 16:58 )

Rallis India to conduct board meeting
( Corporate News - 09-Oct-21 10:12 )