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Rallis India reported a 8% rise in consolidated net sales for June'16 quarter at Rs 449.97 crore, due to better volumes and higher realizations. OPM also increased by about 250 bps to 16.7%, thus resulted in an OP growth of 26% to Rs 75.17 crore. Other income was up by 33% to Rs 1.95 crore. Interest costs was lower by 44% to Rs 2.31 crore and depreciation was up by 8% to Rs 12.42 crore. Thus PBT before EO was higher by 38% to Rs 62.39 crore.
There was an EO income of Rs 158.39 crore for June'16 quarter as compared to Nil for June'15. EO comprises of profit on assignment of leasehold rights to a plot of land in MIDC area, Navi Mumbai to Ikea India Pvt ltd. The profit is net of costs including a premium levied under the repealed urban land act. After paying total tax of Rs 46.58 crore, PAT before MI stood at Rs 174.20 crore. After providing negative MI of Rs 0.03 crore, consolidated PAT for the June'16 quarter stood at Rs 174.23 crore, up by 392% YoY.
Commenting on the performance and developments Mr. Shankar MD and CEO of Rallis India said "I am happy that the Kharif season has picked up on a better note now with South West monsoon having covered whole of India by 13th July. This has given a fillip to the sowings which as on date is up by 3%. The onset of monsoon was delayed and the progress in June was sluggish leaving 11% deficit by the end of the month. This impacted progress of the season which was accentuated by a sharp drop in cotton planting. Consequently demand and placement was muted during Q1 which has picked up in July ".
Commenting further on the seeds business Mr. Shankar added "I am pleased with the performance of Metahelix with seeds revenue rising by 15% to Rs 200 crore (Rs 175 crore previous year). Profit at Rs 47 crore (Rs 36 crore previous period) registered an increase of 32% driven by higher volumes and better operating efficiencies".
Other updates:
During the quarter, the company introduced a new age product "summit", a patented, green label novel insecticide positioned in cotton, chilli and soyabean segments. The recently launched herbicides Panida Grande and Mark have received an encouraging response from farmer's strengthening the portfolio in herbicides. The quarter's performance also reflects the improved quality of operations in margins as well as benefits of better working capital management resulting in lower finance costs.
During June'16 quarter, the company's wholly owned subsidiary Metahelix life science has entered in an arrangement with Indonesian local partner. Metahelix life science holds 65.77% shares in the entity named PT Metahelix lifesciences Indonesia.
Consolidated performance for 12 months ended March 2016
For the 12 months ended Mar'16, consolidated net sales were down by 11% to Rs 1627.87 crore. OPM was lower by 110 bps to 14.1%, further reducing OP by 17% to Rs 230.17 crore. Other income was up by 228% to Rs 13.66 crore. Interest costs were up by 34% to Rs 13.55 crore and depreciation was lower by 10% to Rs 44.59 crore. Thus, PBT stood at Rs 185.69 crore, down by 16% YoY. After providing total tax of Rs 38.96 crore, PAT stood at Rs 146.73 crore. After providing MI of Rs 3.70 crore, consolidated PAT for 12 months ended Mar'16 stood at Rs 143.03 crore, down by 9% YoY.
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