Commenting on the performance and developments Mr Shankar MD and CEO of Rallis India said "The onset of monsoon was delayed and thereafter did not progress well leading to rainfall deficiencies in most parts of the country. As a result, the crop sowings are trailing severely in comparison to the field activity same time last year. We have adopted a cautious approach aligned to these market conditions and are closely monitoring the progress in the field. During the quarter, we have launched two products with novel offering for the farmers. One of these is a combination introduced for the first time in India. Under challenging conditions our seeds business has performed well too. The international business portfolio has also contributed well."

The company continued to make its investments in strengthening its market reach and farmer connect through its flagship programme Rallis Kisan Kutumba. The progress of the monsoon in July and August will be an important determinant on how the overall Kharif season shapes up.

Consolidated Performance for the quarter ended June 2014

The consolidated net sales were up by 14% to Rs 468.54 crore on y.o.y basis. Raw material costs and purchase of traded goods as a % of net sales, net of stock adjustments, was up by 180 bps and 50 bps to 49.3% and 9.9% respectively. Employee costs and other expenditure as a % to net sales net of stock adjustment was down by 70 bps and 160 bps respectively to 5.7% and 25%. Thus overall OPM was thus up by 110 bps at 12.6% resulting in OP growth of 25% to Rs 58.87 crore.

Other income was up by 202% to Rs 3.14 crore. Interest cost was down by 27% to Rs 2.46 crore and depreciation was up by 24% to Rs 11.10 crore. This resulted in PBT of Rs 48.45 crore, up by 35% YoY. Total tax was up by 127% to Rs 6.04 crore, After providing MI of Rs 5.43 crore, down by 7% y.o.y, the consolidated PAT for quarter ended June'14, stood at 36.98 crore, up by 35% y.o.y.

Consolidated Performance for the year ended March 2014

The consolidated net sales increased by 20% to Rs 1746.56 crore. The OPM was up by 30 bps to 15% largely due to lower raw material costs and better product mix. OP grew by 22% to Rs 261.28 crore.

The other income was down by 46% to Rs 6.38 crore. The interest cost was down by 32% to Rs 12.60 crore and depreciation was up by 29% to Rs 40.66 crore. PBT thus stood at Rs 214.40 crore, up by 21% YoY. There is a forex loss of about Rs 4.30 crore in FY'13. After providing total tax of Rs 61.73 crore, up by 15% YoY, and MI of Rs 0.80 crore, PAT for Mar'14 stood at Rs 151.87 crore, up by 28% YoY.  

The stock was trading at around Rs 217 at BSE.

The promoter holding in the company is at 50.09%.