19 October 2020, Mumbai, IN:Rallis India Limited, a TATA Enterprise and a leading player in the Indian agri-inputs industry announced its financial results for the quarter ended 30 September 2020.
The company witnessed a moderate quarter-ending with 3% decrease in revenues YoY, despite strong domestic performance. Crop Care grew by 8% YOY and Seeds by 29%. However, international revenues were under pressure, recording a decline of 29%. EBITDA margins were stable.
Announcing the results, Mr. 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% revenue growth during Q2 for domestic crop care business and a 29% revenue growth in seeds. Product specific challenges in the international business resulted in 29% 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 ₹725 Crs for the quarter ended 30 September, 2020, a decline of 3% over PY of ₹749 Crs. Profit before tax (before exceptional items) was at ₹108 Crs, with a growth of 3% over PY of ₹105 Crs and the profit after tax (after exceptional items) was ₹83 Crs, registering a decline of 2 % over PY of ₹85 Crs.
Consolidated Key Highlights – H1
The Company recorded consolidated revenues of ₹1388 Crs for the half year ended 30 September, 2020, a growth of 1% over PY of ₹1372 Crs. Profit before tax (before exceptional items) was at ₹228 Crs, with a growth of 19% (PY ₹192 Crs) and the profit after tax (after exceptional items) was ₹175 Crs, registering a growth of 21 % (PY ₹ 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 collectionsresulting in reduced working capital days to 65 from previous year of 104 days
Although regular demand generation activities were affected, 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.
