Rallis India Q3 net rises 25 percent

Consolidated key highlights – Q3
Rallis India has recorded revenues of Rs347 crore (Rs325 crore) up by 7 percent for the quarter ended December 31, 2016. Profit before tax (before exceptional items) at Rs32 crore (Rs20 crore) rose by 62 percent; total comprehensive income at Rs25 crore increased 25 percent over last year.

Standalone key highlights – Q3
Revenues at Rs324 crore (Rs300 crore) rose 8 percent for the period vs previous year. Profit before tax (before exceptional items) at Rs40 crore (Rs28 crore) rose by 47 percent. Total comprehensive income was at Rs34 crore up 21 percent over last year.

Consolidated key highlights – 9 months
The company totalled revenues of Rs1,397 crore (Rs1,249 crore) recording increase of 12 percent for the nine months ended December 31, 2016. Profit before tax (before exceptional items) was at Rs190 crore (Rs141 crore) up by 35 percent.

During this period, profit was at Rs348 crore (Rs141 crore) included an exceptional item of Rs158 crore comprising profit on assignment of leasehold rights to a plot of land in the MIDC area, Turbhe, Navi Mumbai.

This profit is net of costs including a premium levied under the repealed Urban Land (Ceiling and Regulation) Act 1976, which has been paid under protest.

Total comprehensive income was at Rs265 crore (Rs112 crore).

During the period, the company acquired the balance 19,421 shares of Rs10 each of Zero Waste Agro Organics Limited (ZWAOL) for a consideration of Rs19.49 crore. As a result, ZWAOL has become a wholly owned subsidiary of the company.

Commenting on the performance and developments, V Shankar, managing director and CEO, Rallis India, said, “I am happy to report an improved performance over last year led by higher acreage in most crops. Northeast monsoon which was forecasted to be normal though ended with 62 percent departure with key southern states severely impacted. This affected sowing of paddy and coarse cereals. Yields are expected to be better and estimates point towards a record production. Our broad based portfolio of solutions and robust farmer relationship have been instrumental in driving our revenue growth during the quarter. Despite market challenges and pricing pressure our quality of operations stood ground driven by our strong brands and field activities.

“Our suite of solutions has enabled us to help farmers in multiple crops and notably in fruits and vegetables which has recorded growth. The recent set of products launched have received encouraging response from farmers. Our performance in the international business continues to be better than last year due to improving situation in key markets such as Brazil and strong demand for herbicides.

“Our focus on working capital and costs continued reflecting in the improved quality of operations as well as higher cash generation and lower finance costs. With Rabi acreages up, we look forward for a good Rabi season.”