Rallis India sales down 21% in Q3 FY2015-16

Rallis clocked consolidated revenues of Rs306 crore (previous year Rs385 crore) for the quarter ended December 31, 2015. EBITDA margins was at 11.5 percent (previous year 13.1 percent) and net profit after minority interest was Rs20 crore (previous year Rs 25 crore).

The company recorded standalone net sales of Rs277 crore (previous year Rs350 crore), for the quarter ended December 31, 2015. EBITDA margins was at 14.5 percent (previous year 16.3 percent) and net profit after tax at Rs26 crore (previous year Rs33 crore).

Rallis has commissioned a 4.4 MWp solar PV power plant at Dahej, for captive consumption across its units in Gujarat, through long-term open access mechanism.

This model of wheeling and distribution of green energy for captive consumption is first of its kind in solar power sector in Gujarat.

Besides progressing in a definitive way in its sustainability strategy, this bulk power will cater to a great extent to the power demand of its Units.

Commenting on the performance and developments, V Shankar, managing director and CEO, Rallis India, said, “2015 has been a ‘difficult year’ for farmers and farming, impacted by climatic turbulence. The quarter saw muted farmer sentiments due to reduced Kharif yields and lower prices of key crops. Deficiency in North East monsoon and lower level of reservoirs across key Rabi crop growing states also affected the crop acreages and health.      
                  
“Consequent drop in usage of crop protection solutions have impacted sales of some key Rallis brands for paddy and pulses.

“International business continued to face pressure in the major markets of Brazil and USA. Lower crop commodity prices and higher Inventories affected consumption. We look forward to market picking up in the first half of 2016 - 17.

“The company has been awarded the Certificate of Recognition for adopting Exemplary Corporate Governance Practices by the Institute of Company Secretaries of India (ICSI). The National Awards for Excellence in Corporate Governance have been instituted by ICSI for annually recognising and awarding the best governed companies in India.”