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Rallis India reported a 8% decrease in consolidated net sales for Mar 19 quarter at Rs 339.69 crore. While international business reported strong growth, domestic business suffered due to lower offtake and higher input costs. OPM was lower by 380 bps to 5.6%, thus resulting in a further 45% fall in OP to Rs 19 crore. Other income was up by 593% to Rs 10.95 crore due to Ind AS adjustments on export incentives as other income compared to other operating income in earlier accounting standard. Interest costs was up by 42% to Rs 1.65 crore and depreciation was higher by 5% to Rs 10.51 crore. PBT before EO stood at Rs 17.79 crore. There was an EO of Rs 17.79 crore comprising of one-time charge of Rs 7.2 crore on account of retirement benefits and Rs 5 crore contribution to electoral fund as compared to Nil for Mar 18 quarter. Thus PBT after EO stood at Rs 5.59 crore down by 15% YoY. After providing total tax of Rs 4.24 crore and loss of MI of Rs 17 lakh, consolidated PAT for the Mar 19 quarter stood at Rs 1.52 crore, down by 92% YoY.
Performance for 12 months ended Mar 19
Net sales for 12 months ended Mar 19 stood at Rs 1983.96 crore, up by 11% YoY. OPM was lower by 200 bps to 12.8% resulting in fall in the OP by 4% to Rs 253.14 crore. Other income was up by 133% to Rs 30.65 crore. Interest cost was higher by 22% to Rs 5.25 crore and depreciation was flat and stood at Rs 46.08 crore which thus resulted in a 2% increase in PBT to Rs 232.46 crore. There was an EO expense of Rs 12.20 crore comprising of one-time charge of Rs 7.2 crore on account of retirement benefits and Rs 5 crore contributions to electoral fund compared to Nil for FY 18. Thus PBT after EO stood at Rs 220.26 crore down by 3% YoY. After paying total tax of Rs 65.48 crore and MI of Rs 60 lakh, consolidated PAT for the 12 months ended Mar 19 stood at Rs 155.38 crore, down by 7% YoY.
Announcing the results, Mr. Sanjiv Lal, Managing Director and CEO, said, "While we have witnessed tough conditions in the domestic business, Rallis is reorienting and is committed to continued investments to grow the business. Rallis is therefore putting in place various measures to strengthen its market position and distributor network while stepping up the R&D effort in bringing new products for the domestic market. There has been strong growth in our international business and this momentum is expected to continue. Investments and capacity expansion at its Dahej site is presently underway to meet the growing demand of our international customers. We remain confident of our growth trajectory on the basis of these efforts."
Other updates
International business and seeds business grew by 36% and 5% respectively
Despite tough market conditions, domestic business was maintained at the same level.
Revised channel credit policies and motivation schemes were revamped
Specialty product launches continues to remain the focus
Investing in capacity expansion at Dahej is underway
Recommended final dividend of Rs 2.5 per equity share of face value of Rs 1 each
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