Improved product mix and cost management endeavor enabled the company to improve its operating margins significantly by 670 bps to 20.7% as compared to the corresponding quarter of the previous year. As a result the absolute operating profit increased 43% to Rs 42.78 crore during the quarter under review. After providing for finance expenses and tax expenses the profit after tax stood augmented by 55% to Rs 24.06 crore during the quarter under review.

The company's new products offerings such as Taqat, Applaud, Takumi and Ergon were well received by the user community, besides the new project in Dahej is scheduled to commence production by July 2010.

Commenting on the company's performance, Mr. V Shankar, Managing Director of the company said, "I am pleased that we have delivered continuous improvement in the quality of our operations reflected in profit growth ad EBIDTA margin increase. Working capital focus and higher cash generation has helped us contain financing costs as well. The farmer response to our portfolio of products has been very satisfying and our investment into the farmer relationship initiative RALLIS KISAN KUTUMBA has been intensified". He further added "Our value creation initiatives under the DISHA platform continue to drive our performance enhancement programmes. I do look forward to our Dahej project being commissioned in the next few months to take on new businesses in contract manufacturing. We are continuing with our progress in the Rallis poised growth agenda".

Quarter ended December 2009-

Disappointing kharif acreages due to poor monsoon coupled with limping global market resulted in lower revenue for the company during the 3^rd quarter of the current fiscal ended December 2009. The top-line posted a marginal decline of 3% to Rs 206.76 crore on a year-on-year basis. Although the kharif season has been disappointing in terms of farm growth, the rabi season is expected to be buoyant for the company's product demand due to the post monsoon showers in several of the sowing areas in the country.

For the quarter under review though the company managed to improve its operating margins significantly to 20.7% as compared to 14% during the corresponding quarter of the previous year. This feat was achieved due to the company's continuous pursuit to deliver better product mix besides efficient working capital and cost management, as is evident from the lower cost of input cost and other operational expenses during the quarter. Thus the absolute operating profit increased 43% to Rs 42.78 crore during the quarter under review. Other income increased to Rs 2.74 crore. After providing for finance expenses the PBT before EO posted a growth of 58% to Rs 40.86 crore. The company incurred an EO expense of Rs 5.48 crore (Rs 3.08 crore accelerated depreciation and Rs 2.4 crore amortization of VRS). The profit after tax stood augmented by 55% to Rs 24.06 crore during the quarter under review.

The company's new products offerings such as Taqat, Applaud, Takumi and Ergon were well received by the user community besides the new project in Dahej is scheduled to commence production by July 2010.

Nine-month ended December 2009

The overall performance for the year till date was impressive too although the top-line growth was muted due to reasons relating to monsoon and poor export growth. The revenue during the nine-month period ended December 2009 grew by just 3% to Rs 694.06 crore as compared to the corresponding period of the previous year. The OPM margin during this period improved 230 bps to 19.7% on a year-on-year basis. As a result the absolute operating profit stood augmented by 16% to Rs 136.88 crore.

The other income rose to Rs 4.95 crore and the overall finance cost were lower during this period. As a result the profit before tax before EO (Extraordinary gain/loss) increased 22% to Rs 128.55 crore. During this period the company incurred an EO expense of Rs 9.55 crore (Rs 3.08 crore accelerated depreciation and Rs 6.47 crore amortization of VRS). The net profit after tax increased 29% to Rs 79.19 crore.

The company became a subsidiary of Tata Chemicals during the previous quarter after the latter's acquisition of 4.09% stake in the company for about Rs 89 crore. Tata Chemicals acquired 9.8 lakh shares at Rs 908.51 a share, inclusive of premium of Rs 898.51 a share, through a preferential allotment thus augmenting its holding to 50.06% from the earlier 45.97%.

The promoter holding in the company as on December 2009 is 50.17%.

The scrip is currently trading at Rs 1065 on the BSE.