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Rallis India reported a 7% increase in consolidated net sales for Dec'20 quarter at Rs 570.47 crore. OPM rose 10 bps to 10.5%. OP as a result increased 8% to Rs 60.12 crore. Other income was down by 24% to Rs 7.64 crore. Interest costs decreased 50% to Rs 79 lakh and depreciation was lower by 31% to Rs 11.04 crore. PBT before EO increased 16% to Rs 55.93 crore. The company reported EO income of Rs 6.12 crore comprising profit on sale of flats compared to nil in the corresponding previous year period.
Tax expense increased 59% to Rs 16.41 crore. Consolidated PAT for the Dec'20 quarter stood at Rs 45.64 crore, up by 20% YoY. Further considering MI, Net profit was up 20% to Rs 45.64 crore.
Performance for 9 months ended Dec'20
Net sales for 9 months ended Dec'20 stood at Rs 1958.18 crore, up by 3% YoY. OPM was higher by 150 bps to 15.6% resulting in rise in the OP by 13% to Rs 305.17 crore. Other income was up by 31% to Rs 32.44 crore. Interest cost was lower by 17% to Rs 4.16 crore and depreciation increased 1% and stood at Rs 49.27 crore which thus resulted in a 18% increase in PBT before EO to Rs 284.18 crore. The company reported EO income of Rs 7.77 crore comprising profit on sale of flats compared to nil EO in 9MFY20. PBT after EO rose 22% to Rs 291.95 crore.
After paying total tax of Rs 71.49 crore, consolidated PAT for the 9 months ended Dec'20 stood at Rs 220.46 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,
"During the current crop season, our business has witnessed a favourable demand resulting in an overall growth of 7%. In the domestic market, growth in Rabi's sowing area was supportive and our domestic crop care business grew by 15% and seeds business by 38% albeit on a smaller base. Export demand also witnessed a revival, as the revenue shortfall vs PY narrowed in Q3. All our capex projects are progressing satisfactorily and are on schedule. As the world witnesses a new strain of the COVID-19 virus, employee safety continues to be our priority."
Key developments during the quarter
- Continued high focus on safety and health of employees, amidst the pandemic
- 1 new insecticide and 3 new crop nutrition products launched
- Continued upstocking of raw materials to avert production disruptions due to potential supply chain issues
- 14% revenue growth on YTD basis in the domestic formulation business. Strong support by flagship brands.
The scrip is currently trading at Rs 285
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