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.