Rallis India reported a 28% increase in consolidated net sales for December 19 quarter at Rs 533.6 crore. Majority of the growth is coming from volume growth across domestic business and international business. Seeds business registered a modest growth for the quarter largely coming from Paddy, Millet and Vegetable. Domestic Business grew by 35% while international sales by 24%.
OPM was higher by 380 bps to 10.4% due to higher contribution coming through volume growth across businesses and reduction in raw material cost. OP as a result rose 102% to Rs 55.74 crore.
Other income was up by 71% to Rs 10.08 crore. Interest costs was down by 14% to Rs 1.57 crore and depreciation was higher by 32% to Rs 15.95 crore. PBT stood at Rs 48.3 crore, up by 146%. After providing total tax of Rs 10.25 crore and loss of MI of Rs 9 lakh, consolidated PAT for the December 19 quarter stood at Rs 38.14 crore, up by 175% YoY.
Performance for 9 months ended December 19
Net sales for 9 months ended December 19 stood at Rs 1905.53 crore, up by 16% YoY. OPM was lower by 10 bps to 14.1% resulting in rise in the OP by 15% to Rs 269.17 crore. Other income was up by 26% to Rs 24.83 crore. Interest cost was higher by 39% to Rs 5.02 crore and depreciation increased 37% and stood at Rs 48.83 crore which thus resulted in a 12% increase in PBT to Rs 240.15 crore. After paying total tax of Rs 56.73 crore and loss of MI of Rs 1.19 crore, consolidated PAT for the 9 months ended December 19 stood at Rs 184.61 crore, up by 20% YoY.
Announcing the results, Mr. Sanjiv Lal, Managing Director and CEO, said,
"During the current crop season our business was supported by positive farmer sentiment, new product launches and refreshed trade policies. Our international business continued to perform positively amidst certain headwinds. Our capacity expansion at Dahej is progressing well. Our investments in R&D along with new products will continue to drive our long term growth. I am pleased to announce that the Board of Rallis has approved setting up of a new ‘state of the art' R&D facility in Bengaluru to drive further growth".
Key developments during the quarter
- Introduced two new formulations during the quarter in Crop Protection- Sarthak and Impeder
- On track to launch 1 additional products during the fiscal (total new introductions in the year is 7)
- Plan to introduce 11-12 new products over the next few years in domestic market
- Setting up of Dahej chemical plant-Progress on track. Production expected to commence in FY 21.
- Metribuzin Phase II expansion of 500MTPA is expected to be commercialized by Feb 1, 2020
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