Capitaline

Results 22-Apr-22

Analysis

Rallis India

In the red

Rallis India consolidated net sales increased 7.70% to Rs 507.54 crore in Q4FY22 compared to Q4FY21. Operating profit margin (OPM) has turned from positive 3.76% to negative 0.56%, Operating profit for the quarter stood loss of Rs 2.84 crore compared to profit of Rs 17.72 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 62.46% to 69.05%. Purchase of finished goods cost fell from 5.01% to 0.75%. Employee cost decreased from 9.78% to 9.45%. Other expenses rose from 19.80% to 21.24%.

Other income fell 6.49% to Rs 7.49 crore. PBIDT fell 81.93% to Rs 4.65 crore. Provision for interest rose 17.14% to Rs 1.23 crore. PBDT fell 86.14% to Rs 3.42 crore. Provision for depreciation rose 32.84% to Rs 19.66 crore. Profit before EO reported loss of Rs 16.24 crore compared to profit of Rs 9.88 crore. The company reported nil EO items during the quarter compared to EO income of Rs 1.68 crore comprising profit on sale of flats. PBT after EO reported loss of Rs 16.24 crore compared to profit of Rs 11.56 crore.

Provision for tax was credit of Rs 2.09 crore, compared to debit of Rs 3.44 crore. Net profit was loss of Rs 14.15 crore compared to profit of Rs 8.12 crore.

Promoters’ stake was 50.09% as of 31 March 2022 compared to 50.09% as of 31 March 2021.

Full year results analysis

Net sales of Rallis India have increased 7.18% to Rs 2603.93 crore. Operating profit margin has declined from 13.29% to 10.52%, leading to 15.12% decline in operating profit to Rs 274.06 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 56.34% to 58.67%. Purchase of finished goods cost fell from 5.47% to 4.50%. Employee cost increased from 8.65% to 8.98%. Other expenses rose from 16.62% to 17.55%.

Other income fell 32.11% to Rs 27.46 crore. PBIDT fell 17.01% to Rs 301.52 crore. Provision for interest fell 8.06% to Rs 4.79 crore. Loan funds rose to Rs 92.74 crore as of 31 March 2022 from Rs 75.61 crore as of 31 March 2021. Inventories rose to Rs 937.99 crore as of 31 March 2022 from Rs 763.20 crore as of 31 March 2021. Sundry debtors were higher at Rs 445.94 crore as of 31 March 2022 compared to Rs 406.28 crore as of 31 March 2021. Cash and bank balance rose to Rs 63.20 crore as of 31 March 2022 from Rs 55.13 crore as of 31 March 2021. Investments declined from Rs 283.48 crore as of 31 March 2021 to Rs 211.90 crore as of 31 March 2022.

PBDT fell 17.14% to Rs 296.73 crore. Provision for depreciation rose 15.98% to Rs 74.31 crore. Fixed assets increased to Rs 704.97 crore as of 31 March 2022 from Rs 599.63 crore as of 31 March 2021. Intangible assets stood at Rs 195.82 crore.

Profit before EO down 24.36% to Rs 222.42 crore. The company reported nil EO items during the year compared to EO income of Rs 9.45 crore comprising profit on sale of flats. PBT after EO reported was down 27% to Rs 222.42 crore.

Provision for tax was expense of Rs 58.22 crore, compared to Rs 74.93 crore. Effective tax rate was 26.18% compared to 24.69%.

Net profit attributable to owners of the company decreased 28.17% to Rs 164.20 crore.

Equity capital stood at Rs 19.45 crore as of 31 March 2022 to Rs 19.45 crore as of 31 March 2021. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 50.09% as of 31 March 2022 ,compared to 50.09% as of 31 March 2021 .

Cash flow from operating activities decreased to Rs 165.82 crore for year ended March 2022 from Rs 216.78 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 185.01 crore, compared to Rs 168.49 crore during the year ended March 2021.

Announcing the results, Mr. Sanjiv Lal, Managing Director, and CEO, Rallis India said,

“The Company delivered a resilient performance in the wake of multiple headwinds during the year. Our domestic crop care business grew at 14.0% and exports by 6.2% during the year. Our seeds business faced challenges and revenue declined by 13%.

Supply chain challenges continued into Q4 with availability issues for certain intermediates as well as steep cost inflation. We are focussed on minimising the disruptions to our production as much as possible. Calibrated price corrections have helped in partially neutralising the material cost inflation.

On the positive side, predictions of normal monsoons and robust commodity prices both locally and globally are expected to have a favourable impact on Indian agriculture.

Moving forward we are focused on growth despite the volatile context. On a longer-term basis, our capex plans, new product introduction plans, and demand generation investments remain on course as we believe that normalcy will be restored progressively. While doing this, we are also consistently prioritising the safety and well-being of all our employees and other stakeholders.”

The scrip is currently trading at Rs 281

Rallis India: Consolidated Results
	2203 (03)	2103 (03)	Var (%)	2203 (12)	2103 (12)	Var (%)
Net Sales	507.54	471.26	8	2603.93	2429.44	7
OPM (%)	-0.6%	3.8%		10.5%	13.3%
Operating Profits	-2.84	17.72	-116	274.06	322.89	-15
Other Income	7.49	8.01	-6	27.46	40.45	-32
PBDIT	4.65	25.73	-82	301.52	363.34	-17
Interest	1.23	1.05	17	4.79	5.21	-8
PBDT	3.42	24.68	-86	296.73	358.13	-17
Depreciation	19.66	14.80	33	74.31	64.07	16
PBT before EO	-16.24	9.88	-264	222.42	294.06	-24
EO	0.00	1.68		0.00	9.45
PBT after EO	-16.24	11.56	-240	222.42	303.51	-27
Tax Expense	-2.09	3.44	-161	58.22	74.93	-22
Net profit before MI	-14.15	8.12	-274	164.20	228.58	-28
MI	0	0		0	-1.16
PAT	-14.15	8.12	-274	164.20	229.74	-29
EPS* (Rs.)	#	#		8.4	11.4
*Annualised on Equity Share Capital Rs 19.45 crore; Face value Rs 1
EO: Extraordinary items, Var.(%) exceeding 999 is restricted to 999
EPS is calculated after excluding EO and relevant tax
PL: Profit to Loss; LP: Loss to Profit
Figures in Rs crore
Source: Capitaline Database

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