Rallis records 72% growth in profit before exceptional items in second quarter
Oct. 22, 2008
This has been possible due to superior product mix, higher volumes, increased presence in the international market as well as the cumulative effect of value creation programmes of the company.
As the company had an exceptional income of Rs87 crore from sale of land in the second quarter of the previous year, its net profit for Q2 08-09 (Rs41.59 crore) is not comparable with Q2 07-08 (Rs101.88 crore).
During the second quarter, Rallis has remarkably improved its profitability before exceptional items achieving EBITDA of 25 per cent as compared to 18 per cent during the same period in the previous year.
Half year results
Profit from operation during the first half of the year virtually doubled to Rs79 crore compared to Rs41 crore in the similar period last year. The company has posted net sales of Rs452 crore for the first half of the year which is higher by 27 per cent over net sales reported in the previous year for the similar period.?
Commenting on the company’s performance, V Shankar, CEO and executive director, Rallis India, said, “I am happy to report strong operating and financial performance for Q2 and H1 2008-09. We have registered a healthy profit growth driven by increases in sales of our key products in domestic as well as international business. Our international business growth programme Apollo has been a significant driver for this performance. New products in the domestic market like Applaud and Takumi have also received excellent response from the farmers. We are registering good progress on our Rallis poised growth agenda and I believe we are well positioned to deliver sustained performance.”
Rallis is known for its manufacturing capabilities in agrochemicals and related chemistries with ability to develop new processes and formulations supported by the capability to register new products. It has contract manufacturing alliances with several multinational agrochemical companies, including Syngenta, Kureha, and Makhteshim Agan. The company is focusing on strengthening its international presence and establishing new capacities for contract manufacturing. Recently Rallis has inaugurated its high-end application polymer plant for poly ether ketone ketone (PEKK) in Ankleshwar, Gujarat. Rallis is the sole manufacturer of PEKK across the world. The company has a long standing strategic relationship with Cytec Engineered Materials, USA and is engaged in an exclusive contract for the supply of PEKK. Rallis has also signed an agreement for increasing its capacity for metconazole, a fungicide contract manufactured exclusive for Kureha, Japan.
Rallis is one of India’s leading agrochemicals companies, with a century old tradition of servicing rural markets and the most comprehensive portfolio of pesticides for Indian farmers. The company is known for its deep understanding of Indian agriculture, sustained relationships with farmers, quality agrochemicals, branding and marketing expertise and its strong product portfolio. During the financial year 2007-08, the company posted profit after tax of Rs125.19 crore and revenues of Rs760.74 crore.
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