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Rallis India reported a 6% increase in consolidated net sales for June'20 quarter at Rs 662.7 crore.OPM rose 420 bps to 19.4%. OP as a result increased 35% to Rs 128.29 crore. Other income was upby 47% to Rs 11.75 crore. Interest costs increased 25% to Rs 1.97 crore and depreciation was higher by 26% to Rs 17.92 crore. PBT increased 38% to Rs 120.15 crore.
Tax expense increased 6% to Rs 28.28 crore. Consolidated PAT for the June'20 quarter stood at Rs 91.87crore, up by 52% YoY.
Performance for 12 months ended Mar'20
Net sales for 12 months ended Mar'20 stood at Rs 2251.82 crore, up by 14% YoY. OPM was lower by 60 bps to 11.5% resulting in rise in the OP by 8% to Rs 259.36 crore. Other income was up by 12% to Rs 34.33 crore. Interest cost was higher by 16% to Rs 6.11 crore and depreciation increased 33% and stood at Rs 61.51 crore which thus resulted in a 3% increase in PBT before EO to Rs 226.07 crore. The company reported EO income of Rs 11.42 crore comprising profit on sale of flats compared to EO expense of Rs 12.2 crore in FY19. PBT after EO rose 8% to Rs 237.49 crore.
After paying total tax of Rs 53.8 crore and loss of MI of Rs 1.16 crore, consolidated PAT for the 12 months ended Mar'20 stood at Rs 184.85 crore, up by 19% YoY.
Announcing the results, Mr. Sanjiv Lal, Managing Director and CEO, Rallis India said,
"With timely arrival of the monsoons and positive farmer sentiment, agricultural activity has picked up well. With the ongoing pandemic situation, we are taking all the safety measures at the organisation level as per Govt. guidelines. We have registered a 13.5% revenue growth during Q1 for domestic crop care business on account of robust demand and a 3% revenue growth in seeds sales over the previous year despite the challenges faced. Going forward, we expect the domestic demand to remain buoyant for crop care products and exports to gradually pick up as well."
Key developments during the quarter
- Successful launch of 4 new hybrids : Maize (2), Bajra (1), Chilli (1)
- Capex program, generally on course, although delayed due to Covid lockdown effect. Metribuzin 500MTPAcommissioned in July, although production is likely to be low due to market softness. New Formulation plantis expected to be commissioned in phases in Dec 2020 and Mar 2021
- Strong focus on ensuring availability of products at the retail end - Raw material sourcing, production, logistic,dependence on multiple vendors/service providers for packing/processing/production
- Collection focused initiatives have supported strong performance on Collections in both Seeds and Crop Care-highest ever in Q1
The scrip is currently trading at Rs 306
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