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Rallis India reported a 2% increase in consolidated net sales for Mar'20 quarter at Rs 346.29 crore. The operations of the company were disrupted due to nationwide lockdown to contain the outbreak of COVID- 19 at certain manufacturing facilities and depots of the company, as a result of which goods worth Rs.16.04 crore could not be dispatched to the domestic market. Further, international shipments were also disrupted due to absence of transportation facilities in the last week of March 2020 resulting in lower shipment of Rs. 53.18 crore.
OPM was negative at 2.8% compared to 2% in Mar'19 quarter. OP as a result reported loss of Rs 9.81 crore compared to profit of Rs 6.80 crore.
Other income was down by 13% to Rs 9.5 crore. Interest costs was down by 34% to Rs 1.09 crore and depreciation was higher by 21% to Rs 12.68 crore. PBT before EO reported loss of Rs 14.08 crore compared to profit of Rs 5.59 crore. The company reported EO income of Rs 11.42 crore comprising profit on sale of flats compared to nil in Mar'19 quarter. PBT after EO reported loss of Rs 2.66 crore compared to profit of Rs 5.59 crore.
After providing total tax credit of Rs 3.34 crore compared to tax expense of Rs 4.24 crore and profit of MI of Rs 3 lakh, consolidated PAT for the Mar'20 quarter stood at Rs 65 lakh, down by 57% YoY.
Performance for 12 months ended Mar'20
Net sales for 12 months ended Mar'20 stood at Rs 2251.82 crore, up by 14% YoY. OPM was lower by 60 bps to 11.5% resulting in rise in the OP by 8% to Rs 259.36 crore. Other income was up by 12% to Rs 34.33 crore. Interest cost was higher by 16% to Rs 6.11 crore and depreciation increased 33% and stood at Rs 61.51 crore which thus resulted in a 3% increase in PBT before EO to Rs 226.07 crore. The company reported EO income of Rs 11.42 crore comprising profit on sale of flats compared to EO expense of Rs 12.2 crore in FY19. PBT after EO rose 8% to Rs 237.49 crore.
After paying total tax of Rs 53.8 crore and loss of MI of Rs 1.16 crore, consolidated PAT for the 12 months ended Mar'20 stood at Rs 184.85 crore, up by 19% YoY.
Announcing the results, Mr. Sanjiv Lal, Managing Director and CEO, said,
"Under the current Covid 19 situation, we are focusing on the safety of our employees and operations. Taking view of the situation, we coincided our maintenance related shutdown with the lockdown period. After completing critical maintenance jobs, we have resumed operations since 27th April and expect to ramp up production levels gradually with the adoption of safe practices. The agriculture sector is encouraged with the positive monsoon prediction and expects to display resilience in the time to come. We are thankful to the Government in supporting the agri input industry which is declared as an essential industry. As we move forward, we are adapting to the new normal with a consistent focus on product supply, cash position, optimal capex and calibrated fixed costs".
Key developments during the quarter
- Metri WDG (300 MTPA) and Metri SC (600 KLPA) plants completed
- Capacity expansion at Dahej slightly delayed amid COVID19 lockdown
- Agri inputs placed under the 'essential category' by the government during the lockdown period
- Revised credit and marketing policy, with emphasis on distance marketing and collections"
- This quarter saw the merger of subsidiary Metahelix Life Sciences and the standalone results reflect the merged financials including that of Zero Waste.
The scrip is currently trading at Rs 223
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