RallisIndia consolidated net sales increased 10.10% to Rs 628.08 crore in Q3FY22compared to Q3FY21. Operating profit margin has jumped from 10.54% to 10.73%,leading to 12.11% rise in operating profit to Rs 67.40 crore.
Raw material cost as a % of total sales (netof stock adjustments) increased from 54.69% to 58.30%. Purchase of finishedgoods cost rose from 5.06% to 5.10%. Employee cost decreased from 9.86% to9.02%. Other expenses fell from 19.38% to 17.81%. Otherincome fell 28.14% to Rs 5.49 crore. PBIDT rose 7.57% to Rs 72.89 crore.Provision for interest rose 77.22% to Rs 1.4 crore. PBDT rose 6.75% to Rs 71.49crore. Provision for depreciation rose 66.85% to Rs 18.42 crore. Profit beforeEO was down 5.11% to Rs 53.07 crore. The company reported nil EO items duringthe quarter compared to EO income of Rs 6.12 crore in corresponding previousyear quarter comprising profit on sale of flats. PBT after EO was down 14% toRs 53.07 crore. Provision for tax was expense of Rs 13.51 crore, compared to Rs16.41 crore.
Effective tax rate was25.46% compared to 26.45%. Net profit attributable to owners of the companydecreased 13.32% to Rs 39.56 crore. Promoters'stake was 50.09% as of 31 December 2021 compared to 50.09% as of 31 December2020.
. Performance for six months ended September 2021Net sales of Rallis India have increased 7.06% to Rs 2096.39 crore. Operatingprofit margin has declined from 15.58% to 13.21%, leading to 9.26% decline inoperating profit to Rs 276.90 crore. Raw material cost as a % of total sales(net of stock adjustments) increased from 54.40% to 55.74%. Purchase offinished goods cost fell from 5.61% to 5.56%. Employee cost increased from8.29% to 8.85%. Other expenses rose from 15.62% to 16.51%.Other income fell 38.44% to Rs 19.97 crore. PBIDT fell 12.07% toRs 296.87 crore. Provision for interest fell 14.42% to Rs 3.56 crore. PBDT fell12.04% to Rs 293.31 crore. Provision for depreciation rose 10.92% to Rs 54.65crore. Profit before EO down 16.02% to Rs 238.66 crore. The company reportednil EO items during the period compared to EO income of Rs 7.77 crore incorresponding previous year period comprising profit on sale of flats. PBTafter EO was down 14% to Rs 53.07 crore. Provision for tax was expense of Rs60.31 crore compared to Rs 71.49 crore.
Effective tax rate was 25.27% compared to 24.49%. Net profitattributable to owners of the company decreased 19.08% to Rs 178.39 crore. Promoters' stake was 50.09% as of 31 December 2021 compared to50.09% as of 31 December 2020.
. Full year results analysis
Net sales (including other operating income) of Rallis India has increased7.89% to Rs 2429.44 crore. Operating profit margin has jumped from 11.52% to13.29%, leading to 24.49% rise in operating profit to Rs 322.89crore. Raw material cost as a % of total sales (net of stockadjustments) increased from 56.11% to 56.34%. Purchase of finishedgoods cost fell from 6.18% to 5.47%. Employee cost decreased from8.76% to 8.65%. Other expenses fell from 17.61% to 16.62%. Other income rose 17.83% to Rs 40.45 crore. PBIDT rose23.72% to Rs 363.34 crore. Provision for interest fell 14.73% to Rs5.21 crore. Loan funds declined from Rs 90.29 crore as of 31 March2020 to Rs 75.61 crore as of 31 March 2021. Inventories rose to Rs763.20 crore as of 31 March 2021 from Rs 699.20 crore as of 31 March2020. Sundry debtors were lower at Rs 406.28 crore as of 31 March2021 compared to Rs 450.59 crore as of 31 March 2020. Cash and bankbalance rose to Rs 55.13 crore as of 31 March 2021 from Rs 48.65 crore as of 31March 2020. Investments declined from Rs 302.47 crore as of 31 March2020 to Rs 283.48 crore as of 31 March 2021. PBDT rose 24.53% to Rs 358.13 crore. Provision fordepreciation rose 4.16% to Rs 64.07 crore. Fixed assets increased toRs 599.63 crore as of 31 March 2021 from Rs 472.72 crore as of 31 March2020. Intangible assets stood at Rs 195.82 crore. Profit before tax grew 30.07% to Rs 294.06 crore. Shareof profit/loss were nil in both the periods. Extraordinary itemswere decreased to Rs 9.45 crore. Provision for tax was expense of Rs74.93 crore, compared to Rs 53.8 crore. Effective tax rate was24.69% compared to 22.65%.Minority interest was nil in both the periods. Netprofit attributable to owners of the company increased 23.66% to Rs 228.58crore. Promoters' stake was 50.09% as of 31 March 2021 compared to 50.09%as of 31 March 2020.
Announcing the results,Mr. Sanjiv Lal, Managing Director and CEO, Rallis India said,
“Theerratic monsoon season this year has not favoured agri input companies asexcessive rainfall continued into Q3 in the southern states. Despite thesechallenges, our domestic crop care business grew at 9.4%, and exports by 19%during the quarter. The seeds industry continued to face headwinds due to
restrictionsfor sale of paddy and maize hybrids in some states.Supplychain challenges continued into Q3 with availability being a challenge forcertain intermediates as well as steep inflation in prices. We are focussed onminimising the disruptions to our production as much as possible and calibratedprice corrections have helped in partially neutralizing the RM cost inflation.Ona longer term basis, our capex plans, new product introduction plans and demandgeneration investments remain on course as we do believe that normalcy will berestored progressively.Whilepositioning ourselves so, we are also consistently prioritising the safety andwell-being of all our employees and other stakeholders.”
Key developments duringthe quarter
§ Raw material availability and costscontinue to be challenging § Ankleshwar debottlenecking project fortwo key active ingredients completed and commissioned § MPP project progressing well § Formulation Plant at Dahej, CZ - Phase1 completed. Commercial production started § Successful launch of a new microbialbiopesticide, a potash rich organic manure, and a new maize hybrid § Focus continued on supply chain amidstavailability and logistic challenges and high international freight rates § Select commodity prices are good andexport demand for crop protection is good. Overall Rabi sown area in Indiaremains stable. Thescrip is currently trading at Rs 294
| Rallis India: Consolidated Results |
| | 2112 (03) | 2012 (03) | Var (%) | 2112 (09) | 2012 (09) | Var (%) | 2103 (12) | 2003 (12) | Var (%) |
| Net Sales | 628.08 | 570.47 | 10 | 2096.39 | 1958.18 | 7 | 2429.44 | 2251.82 | 8 |
| OPM (%) | 10.7% | 10.5% | | 13.2% | 15.6% | | 13.3% | 11.5% | |
| Operating Profits | 67.40 | 60.12 | 12 | 276.90 | 305.17 | -9 | 322.89 | 259.36 | 24 |
| Other Income | 5.49 | 7.64 | -28 | 19.97 | 32.44 | -38 | 40.45 | 34.33 | 18 |
| PBDIT | 72.89 | 67.76 | 8 | 296.87 | 337.61 | -12 | 363.34 | 293.69 | 24 |
| Interest | 1.40 | 0.79 | 77 | 3.56 | 4.16 | -14 | 5.21 | 6.11 | -15 |
| PBDT | 71.49 | 66.97 | 7 | 293.31 | 333.45 | -12 | 358.13 | 287.58 | 25 |
| Depreciation | 18.42 | 11.04 | 67 | 54.65 | 49.27 | 11 | 64.07 | 61.51 | 4 |
| PBT before EO | 53.07 | 55.93 | -5 | 238.66 | 284.18 | -16 | 294.06 | 226.07 | 30 |
| EO | 0.00 | 6.12 | | 0.00 | 7.77 | | -9.45 | -11.42 | -17 |
| PBT after EO | 53.07 | 62.05 | -14 | 238.66 | 291.95 | -18 | 303.51 | 237.49 | 28 |
| Tax Expense | 13.51 | 16.41 | -18 | 60.31 | 71.49 | -16 | 74.93 | 53.80 | 39 |
| Net profit before MI | 39.56 | 45.64 | -13 | 178.35 | 220.46 | -19 | 228.58 | 183.69 | 24 |
| MI | 0 | 0 | | -0.04 | 0 | | 0 | -1.16 | |
| PAT | 39.56 | 45.64 | -13 | 178.39 | 220.46 | -19 | 228.58 | 184.85 | 24 |
| EPS* (Rs.) | # | # | | # | # | | 11.4 | 9.0 | |
| *Annualised on Equity Share Capital Rs 19.45 crore; Face value Rs 1 |
| EO: Extraordinary items, Var.(%) exceeding 999 is restricted to 999 |
| EPS is calculated after excluding EO and relevant tax |
| PL: Profit to Loss; LP: Loss to Profit |
| Figures in Rs crore |
| Source: Capitaline Database |
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