Rallis India post INR 83 crore net profit in Q2

MUMBAI, 20 October 2020: Rallis India Limited, a TATA Enterprise and a leading player in the Indian agri-inputs industry has announced that it has posted a net profit of INR 83 crore for the second quarter ended 30 September 2020.

The company witnessed a moderate quarter-ending with 3 percent decrease in revenues year-on-year (YoY), despite strong domestic performance. Crop Care grew by 8 percent YOY and Seeds by 29 percent. However, international revenues were under pressure, recording a decline of 29 percent. EBITDA margins were stable.

Announcing the results, Sanjiv Lal, Managing Director and CEO, Rallis India said, “Gradual return to normalcy and a good monsoon season have led to a favourable momentum for agricultural activities. Even though we are now in the Unlock phase, we continue to prioritise the safety and wellbeing of our employees. We have registered an 8 percent revenue growth during Q2 for domestic crop care business and a 29 percent revenue growth in seeds. Product specific challenges in the international business resulted in 29 percent YoY de-growth during Q2. Strong operating discipline resulted in improved cash from operating activities. Despite covid challenges, our capex program and focus on new product introduction remain on course “

Consolidated Key Highlights – Q2

The Company recorded consolidated revenues of INR 725 Crs for the quarter ended 30 September, 2020, a decline of 3 percent over PY of INR 749 Crs. Profit before tax (before exceptional items) was at INR 108 Crs, with a growth of 3 percent over PY of INR 105 Crs and the profit after tax (after exceptional items) was INR 83 Crs, registering a decline of 2 percent over PY of INR 85 Crs.

Consolidated Key Highlights – H1

The Company recorded consolidated revenues of INR 1388 Crs for the half year ended 30 September, 2020, a growth of 1 percent over PY of ₹1372 Crs. Profit before tax (before exceptional items) was at  INR 228 Crs, with a growth of 19 percent (PY  INR 192 Crs) and the profit after tax (after exceptional items)  was INR 175 Crs, registering a growth of  21 percent (PY INR 145 Crs).

Key Developments –

●        High focus on Safety, amidst the pandemic

●        Amidst Covid challenges, shipping, logistics and coordination were in high focus

●        Procurement of additional raw material stocks to avert production disruptions

●        Digital  launch of new 9(3) product, Kriman

●        Continued our strong focus on ensuring availability of products at the retail end

●        Collection focused initiatives have helped continue strong performance on collections resulting in reduced working capital days to 65 from previous year of 104 days

●        Although regular demand generation activities were affected, we continued our distance marketing efforts with increased activity on Facebook, WhatsApp, YouTube and other platforms

●        Capex program, generally on course, although delays expected due to site conditions following excessive rainfall and manpower availability