Rallis India sales up 20% in Q2 FY2016-17

Rallis India Limited registered revenues of Rs. 588 crs, up by 20% for the second quarter ended 30th September 2016. Profit before tax (before exceptional items) at Rs. 96 crs rose by 27%. Total comprehensive income at Rs. 65 crs increased 32% over last year.

 

The company totaled revenues of Rs. 1,051 crs recording increase of 14% for the six months ended 30th September 2016. Profit before tax was at Rs. 158 crs up by 31%. During this period, profit was at Rs. 317 crs including an exceptional item of Rs. 158 crs 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 This profit is net of costs including a premium levied under the repealed Urban Land (Ceiling and Regulation) Act 1976, which has been paid under protest.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 Rs. 239 crs.

 

Commenting on the performance and developments, Mr. V Shankar, Managing Director and CEO, Rallis India said, “I am happy to report an improved performance on the back of a normal monsoon during this Kharif season. While the distribution was not particularly even, with long dry spells coupled with floods in some areas, the cropping acreages has been up in most crops. Yields are expected to be better and estimates point towards a record Kharif 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.

 

During the quarter, we introduced Epic (a broad spectrum fungicide with WDG formulation for the management of sheath blight & sheath rot in paddy) and Quest (a specialty insecticide for the management of white flies in cotton) which have received encouraging response from farmers. Our performance in the international business was also buoyed by the improving situation in key markets such as Brazil and strong demand for herbicides.

 

Our focus on working capital and costs continued reflecting the improved quality of operations as well as higher cash generation and lower finance costs. I do expect with improved reservoir water level and good farmer sentiments we would have a better Rabi season.”