|
Rallis India reported a 3% decrease in consolidated net sales for Sep'20 quarter at Rs 725.01 croredespite strong domestic performance. Crop Care grew by 8% YOY and Seeds by 29%. However, international revenues were under pressure, recording a decline of 29%. EBITDA margins were stable.OPM rose 30 bps to 16.1%. OP as a result decreased 2% to Rs 116.76 crore. Other income was upby 93% to Rs 13.05 crore. Interest costs decreased 26% to Rs 1.4 crore and depreciation was higher by 9% to Rs 20.31 crore. PBT before EO increased 3% to Rs 108.1 crore. The company reported EO income of Rs 1.65 crore comprising profit on sale of flats compared to nil in the corresponding previous year period.
Tax expense increased 34% to Rs 26.8 crore. Consolidated PAT for the Sep'20 quarter stood at Rs 82.95crore, down by 2% YoY. Further considering MI, Net profit was down 3% to Rs 82.95 crore.
Performance for 6 months ended Sep'20
Net sales for 6 months ended Sep'20 stood at Rs 1387.71 crore, up by 1% YoY. OPM was higher by 210 bps to 17.7% resulting in rise in the OP by 15% to Rs 245.05 crore. Other income was up by 68% to Rs 24.8 crore. Interest cost was lower by 2% to Rs 3.37 crore and depreciation increased 16% and stood at Rs 38.23 crore which thus resulted in a 19% increase in PBT before EO to Rs 228.25 crore. The company reported EO income of Rs 1.65 crore comprising profit on sale of flats compared to nil EO in H1FY20. PBT after EO rose 20% to Rs 229.9 crore.
After paying total tax of Rs 55.08 crore, consolidated PAT for the 6 months ended Sep'20 stood at Rs 174.82 crore, up by 20% 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, Rallis India said,
"Gradual return to normalcy and a good monsoon season have led to a favourable momentum for agricultural activities. Even though we are now in the Unlock phase, we continue to prioritise the safety and wellbeing of our employees. We have registered an 8% revenue growth during Q2 for domestic crop care business and a 29% revenue growth in seeds. Product specific challenges in the international business resulted in 29% YoY de-growth during Q2. Strong operating discipline resulted in improved cash from operating activities. Despite covid challenges, our capex program and focus on new product introduction remain on course "
Key developments during the quarter
- High focus on Safety, amidst the pandemic
- Amidst Covid challenges, shipping, logistics and coordination were in high focus
- Procurement of additional raw material stocks to avert production disruptions
- Digital launch of new 9(3) product, Kriman
- Continued strong focus on ensuring availability of products at the retail end
- Collection focused initiatives have helped continue strong performance on collections resulting in reduced working capital days to 65 from previous year of 104 days.
- Although regular demand generation activities were affected, continued distance marketing efforts with increased activity on Facebook, WhatsApp, YouTube and other platforms
- Capex program, generally on course, although delays is expected due to site conditions following excessive rainfall and manpower availability.
The scrip is currently trading at Rs 273
|