Rallis Q2 net rises 28 per cent

Mumbai: Rallis India, a Tata enterprise and a leading player in the Indian crop protection industry, today announced its financial results for the quarter ended September 30, 2010.

Q2 performance:
Net sales from operations has registered a growth of 15 per cent at Rs363 crore as compared to Rs317 crore during the same period in 2009–10.
The company has achieved EBITDA of Rs89.4 crore (previous year Rs73.5 crore) reflecting a growth of 22 per cent. The EBIDTA margin improved to 25 per cent against the previous year 24 per cent.
PBT of Rs85.5 crore during Q1, increased by 24 per cent from last year’s figure of Rs68.7 crore.
Net profit for the period was Rs58.7 crore as compared to Rs45.7 crore last year, a growth of 28 per cent.
Commenting on the company’s performance, V Shankar, managing director and CEO, Rallis India, said, “I am happy that we have set a new H1 record of gross sales crossing Rs600 crore and operational profit Rs100 crore. The improved company performance has delivered Q2 PBT of Rs85 crore, the highest ever quarterly operating profit. The new product solutions offered to farmers such as Ralligold, Ergon and Taarak have received encouraging response and contributed well. In addition, good operating efficiencies and continued focus on working capital productivity have improved EBIDTA margin and cash generation. We continue to drive our Rallis poised growth agenda satisfactorily.”

Commenting on other business aspects, Mr Shankar added, “The monsoon has been normal overall though it followed an erratic pattern, and parts of the country suffered by both floods and drought conditions. Our domestic business performed well though spraying was affected due to continuous rains. The international business recorded improved performance with revival in many global markets. We also commissioned expansion of fungicide facility at Ankleshwar Unit. We have received recognition from the authorities on safety performance.”

Rallis, a subsidiary of Tata Chemicals, is known for its manufacturing capabilities in crop protection chemicals and various types of 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.

Rallis is one of India’s leading agrochemicals companies with a century-old tradition of servicing rural markets and a 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 2009–10, the company had posted a net profit of Rs101 crore and revenues of Rs933 crore.