Capitaline

Results 20-Jul-22

Analysis

Rallis India

Revenue growth led by domestic crop care business and exports

Rallis India standalone net sales increased 16.51% in Q1FY23 compared to Q1FY22 to Rs 862.78 crore. Operating profit margin has declined from 16.42% to 13.06%, leading to 7.36% decline in operating profit to Rs 112.66 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 53.23% to 56.99%. Purchase of finished goods cost rose from 5.63% to 8.78%. Employee cost decreased from 8.56% to 7.30%. Other expenses fell from 15.19% to 14.46%.

Other income fell 42.41% to Rs 4.02 crore. PBIDT fell 9.26% to Rs 116.68 crore. Provision for interest up 79.57% to Rs 1.67 crore.

PBDT fell 9.91% to Rs 115.01 crore. Provision for depreciation rose 33.42% to Rs 24.67 crore.

Profit before tax down 17.25% to Rs 90.34 crore. The company reported EO income of Rs 62 lakh compared to nil EO items during the quarter. PBT after EO rose 17% to Rs 90.96 crore.

Provision for tax was expense of Rs 23.49 crore, compared to Rs 26.75 crore. Effective tax rate was 25.82% compared to 24.50%.

Profit after tax fell 18.14% to Rs 67.47 crore.

Promoters’ stake was 50.09% as of 30 June 2022 compared to 50.09% as of 30 June 2021 .

Full year results analysis

Net sales of Rallis India have increased 7.18% to Rs 2,603.93 crore. Operating profit margin has declined from 13.29% to 10.53%, leading to 15.12% decline in operating profit to Rs 274.14 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 32.15% to Rs 27.44 crore. PBIDT fell 17.02% to Rs 301.58 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 53.91 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 17.15% to Rs 296.79 crore. Provision for depreciation rose 15.98% to Rs 74.31 crore. Fixed assets increased to Rs 619.68 crore as of 31 March 2022 from Rs 530.03 crore as of 31 March 2021. Intangible assets increased from Rs 265.42 crore to Rs 281.11 crore.

Profit before EO was down 24.37% to Rs 222.48 crore. The company reported nil EO items compared to EO income of Rs 9.45 crore. PBT after EO was down 27% to Rs 222.48 crore.

Provision for tax was expense of Rs 58.21 crore compared to Rs 74.93 crore. Effective tax rate was 26.16% compared to 24.68%.

Profit after tax fell 28.16% to Rs 164.27 crore.

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 165.86 crore for year ended March 2022 from Rs 216.24 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 184.99 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,

“In Q1, we witnessed a strong growth of 16.5% in revenue on the back of 17.1% growth in domestic crop care business and 51% growth in exports. However, we faced cost headwinds which affected our margins. In the seeds business, there were challenges of delayed monsoon and crop shifts. The revival of monsoons in July augurs well for agriculture.”

“Our long-term focus continues to be investing in growth through new product introduction, expanding our retail footprint and investing in flexible Multipurpose manufacturing plants for multiple chemistry capabilities required for our new product pipeline” he added.

The scrip is currently trading at Rs 208

Rallis India: Standalone Results
	2206 (03)	2106 (03)	Var (%)	2203 (12)	2103 (12)	Var (%)
Net Sales	862.78	740.51	17	2603.93	2429.43	7
OPM (%)	13.1%	16.4%		10.5%	13.3%
Operating Profits	112.66	121.61	-7	274.14	322.99	-15
Other Income	4.02	6.98	-42	27.44	40.44	-32
PBDIT	116.68	128.59	-9	301.58	363.43	-17
Interest	1.67	0.93	80	4.79	5.21	-8
PBDT	115.01	127.66	-10	296.79	358.22	-17
Depreciation	24.67	18.49	33	74.31	64.07	16
PBT before EO	90.34	109.17	-17	222.48	294.15	-24
EO	0.62	0.00		0.00	9.45
PBT after EO	90.96	109.17	-17	222.48	303.60	-27
Tax Expense	23.49	26.75	-12	58.21	74.93	-22
Net profit before MI	67.47	82.42	-18	164.27	228.67	-28
MI	0	0		0	0
PAT	67.47	82.42	-18	164.27	228.67	-28
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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