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Rallis India reported a 1% fall in consolidated net sales for Mar'17 quarter at Rs 348.12 crore. OPM was lower by 80 bps to 12%, resulting in OP fall of Rs 41.63 crore. Other income was down by 50% to Rs 4.50 crore. Interest costs was lower by 13% to Rs 2.62 crore and depreciation was higher by 112% to Rs 11.99 crore. Thus PBT was further down by 31% to Rs 31.52 crore. After paying total tax of Rs 0.51 crore and MI of Rs 0.11, consolidated PAT for the quarter ended Mar'17 stood at Rs 31.12 crore, down by 10% YoY.
Commenting on the performance, Mr. V Shankar MD and CEO said, "I am pleased that our overall performance was in line with previous year in Q4. The below normal northeast monsoon severely affected the key southern States with 30 reservoirs in the regions below 40% storage levels. Overall Rabi cropping acreages are up 5%, except paddy which is down 12%.
During the quarter, we introduced Neonix, a seed treatment solution against soil borne insect and disease complex for Groundnut. Our brands such as Ergon, Summit, Mark, Epic, Zeeny and Panida grande have registered good growth in 2016-17 and will be key drivers of growth going forward.
We continued with our focus on working capital and placing stocks to align with market requirements. Rallis continues to be near zero debt status with emphasis on cash. In line with our promise to our customers- "Enhancing farm prosperity, building relationships" we have launched Rallis Krishi Samadhan app for farming community, to provide a one stop solution for most of the farming needs.
The forecast for normal monsoon augers well for the coming Kharif season. International businesses have performed in line with expectations. We have been qualified for couple of new businesses in contract manufacturing".
Performance for the 12 months ended Mar'17
For the 12 months ended Mar'17, consolidated net sales was up by 10% to Rs 1678.30 crore OPM was higher by 70 bps to 15.7% resulting in a 15% increase in OP to Rs 263.37 crore. Other income was lower by 10% to Rs 12.79 crore. Interest cost was lower by 46% to Rs 7.29 crore and depreciation was higher by 8% to Rs 47.31 crore, thus resulting in a PBT before EO of Rs 221.56 crore. There was an EO income of Rs 158.39 crore for the 12 months ended Mar'17 as compared to Nil for 12 months ended Mar'16. EO comprises of profit on assignment of leasehold rights to a plot of land in MIDC area, Navi Mumbai to Ikea India Pvt ltd. The profit is net of costs including a premium levied under the repealed urban land act. After paying total tax of Rs 82.88 crore, PAT before MI stood at Rs 297.07 crore. After providing MI of Rs 0.39 crore, consolidated PAT for the 12 months ended Mar'17 stood at Rs 297.46 crore, up by 107%.
The board of directors have recommended a dividend of Rs 2.50 per equity share of fave value of Rs 1 each for FY'17. The board has also recommended a onetime special dividend of Rs 1.25 per equity share of face value of Rs 1 each for FY'17 out of the profit on assignment of leasehold rights in Turbhe land.
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