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Rallis India reported a 1% fall in consolidated net sales for June 17 quarter at Rs 445.50 crore. OPM was lower by 110 bps to 15.6%, resulting in OP fall by 8% to Rs 69.41 crore. Other income was up by 133% to Rs 4.54 crore. Interest costs was lower by 50% to Rs 1.15 crore and depreciation was lower by 8% to Rs 11.46 crore. PBT before EO was lower by 2% to Rs 61.34 crore. There was an EO income of Rs 158.39 crore for June 16 quarter relating to profit on sale of land entitlement at Taloja as compared to Nil for June 17 quarter. Thus PBT after EO was down by 72% to Rs 61.34 crore. After paying total tax of Rs 16.09 crore and MI of Rs 0.11, consolidated PAT for the quarter ended June 17 stood at Rs 45.36 crore, down by 74% YoY.
Commenting on the performance, Mr. V Shankar MD and CEO said, "I am pleased that rains have covered the entire country and the forecast is of a normal monsoon. A good Kharif season will buoy the farmer sentiments and improve farm income required to boost agriculture. Sowing progress is satisfactory with crops such as pulses, cotton, paddy etc having increased acreage. The quarter is the important one for our seeds business which has registered commendable performance. In the crop protection segment though we have witnessed destocking by dealers ahead of GST implementation and down trading by farmers. Consequently placement was muted during Q1 compared to the regular scale, which has since picked up in July 2017.
Our recently launched products EPIC, QUEST, SUMMIT, NEONIX among others have received encouraging response from farmers strengthening the portfolio.
The company has embarked on a roll out of its Agri solutions platform Rallis Samrudh Krishi to improve farmer's crop productivity and value for farmers. These are supported by certain digital interventions including Rallis Krishi Samadhan app for the farming community and Drishti a predictive analytics system to provide current and forecasted information on crop health, pest/disease, soil moisture, crop acreage, crop yield, crop fertilizer requirements etc. I do believe that these initiatives will facilitate better cropping and add value to our farmers."
International business has performed in line with expectation and the company has begun receiving commercial orders on new contract manufacturing business.
The Board of directors has accorded its consent to the merger of Zero Waste Agro Organics (Wholly owned subsidiary) with the company under the scheme of amalgamation subject to necessary statutory approvals from regulatory authorities.
The company has signed an agreement to sell its entire shareholding comprising 18286000 equity shares of face value of Rs 10 each held by the company in Advinus to Eurofins Pharma services lux holding SARL for a consideration of Rs 9.47 per equity share aggregating Rs 17.32 crore on 20th July 2017. The fair value of Rs 1.41 crore in the value of investment has been accounted for in the other comprehensive income during the quarter ended 30th June 2017.
Performance for the 12 months ended June 17
For the 12 months ended June 17, consolidated net sales was up by 10% to Rs 1678.30 crore OPM was higher by 70 bps to 15.7% resulting in a 15% increase in OP to Rs 263.37 crore. Other income was lower by 10% to Rs 12.79 crore. Interest cost was lower by 46% to Rs 7.29 crore and depreciation was higher by 8% to Rs 47.31 crore, thus resulting in a PBT before EO of Rs 221.56 crore. There was an EO income of Rs 158.39 crore for the 12 months ended June 17 as compared to Nil for 12 months ended Mar'16. 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 82.88 crore, PAT before MI stood at Rs 297.07 crore. After providing MI of Rs 0.39 crore, consolidated PAT for the 12 months ended June 17 stood at Rs 297.46 crore, up by 107%.
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