Rallis India consolidated net profit up by 19% for FY 2019-20

MUMBAI, 6 May 2020: India’s leading crop protection company, Rallis India, a Tata Enterprise has announced that it consolidated net profit for fiscal year 2019-20 has been recorded a growth of 19% at INR 184 crore, against INR 155 crore recorded during the same period last fiscal year.

During the 2019-20 fiscal year, the company’s consolidated revenues was up by 14% to INR 2,252 crs, as compared to INR 1,984 crore posted during the previous fiscal year.

Profit before tax (after exceptional items) was at INR 237 crs, a growth of 8% over previous financial year at INR 220 crore.

Speaking on the results, Sanjiv Lal, Managing Director and CEO, Rallis India said, “Under the current COVID 19 situation, we are focusing on the safety of our employees and operations. Taking view of the situation, we coincided our maintenance related shutdown with the lockdown period. After completing critical maintenance jobs, we have resumed operations since 27 April and expect to ramp up production levels gradually with the adoption of safe practices.”

“The agriculture sector is encouraged with the positive monsoon prediction and expects to display resilience in the time to come. We are thankful to the Government in supporting the agri input industry which is declared as an essential industry. As we move forward, we are adapting to the new normal with a consistent focus on product supply, cash position, optimal capex and calibrated fixed costs,” Lal added.

Q4 results

During Q4, the company posted only 2% growth at INR 346 crore, as against INR 340 crore, while loss before tax (after exceptional items) was at INR 3 crore, over previous year (as against profit before tax (after exceptional items) of INR 6 crore) and the profit after tax was INR 1 crore, against INR  1 crore during 2018-19.

The operations were disrupted at certain manufacturing facilities and depots of the Company due to notified the first ever nationwide lockdown in India to contain the outbreak of COVID 19 from 24 March 2020, as a result of which goods worth INR 16.04 crore could not be dispatched to the domestic market. Further, international shipments were also disrupted due to absence of transportation facilities in the last week of March 2020 resulting in lower shipment of INR 53.18 crore.

Standalone Q4 highlights

Rallis standalone recorded revenues of INR 346 crs for the quarter ended 31 March, 2020, a growth of 2% over PY (INR 339 crs). Loss before tax (after exceptional items) was at INR (-3) crore, over PY (INR 2 crore) and the profit after tax was INR 1 crore, over PY (INR -1 crore).

The Ministry of Home Affairs vide order No.40-3/2020 dated 24.03.2020 notified the first ever nationwide lockdown in India to contain the outbreak of COVID 19. The operations were disrupted at certain manufacturing facilities and depots of the Company, as a result of which goods worth Rs.16.04 crs could not be dispatched to the domestic market. Further, international shipments were also disrupted due to absence of transportation facilities in the last week of March 2020 resulting in lower shipment of Rs.53.18 crs.

Standalone highlights for 2019-20

Rallis standalone recorded revenues of INR 2,252 crs for the year ended 31 March, 2020, a growth of 14% over previous year (INR 1,984 crore). Profit before tax (after exceptional items) was at INR 239 crore, a growth of 9% over PY (INR 219 crore) and the profit after tax was INR 185 crore, a growth of 20% over PY (INR 154 crore).

Plants developments

During the year, the company completed its Metri WDG (300 MTPA) and Metri SC (600 KLPA) plants completed.

The company said that the capacity expansion of Dahej plant was slightly delayed due lockdown.

However, the company said that merger of our subsidiary Metahelix Life Sciences and the standalone results reflect the merged financials including that of Zero Waste.