Mumbai: 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 June 2020.
Announcing the results, Mr. Sanjiv Lal, Managing Director and CEO, Rallis India said, “With timely arrival of the monsoons and positive farmer sentiment, agricultural activity has picked up well. With the ongoing pandemic situation, we are taking all the safety measures at the organisation level as per Govt. guidelines. We have registered a 13.5% revenue growth during Q1 for domestic crop care business on account of robust demand and a 3% revenue growth in seeds sales over the previous year despite the challenges faced. Going forward, we expect the domestic demand to remain buoyant for crop care products and exports to gradually pick up as well.”
Consolidated Key Highlights – Q1
The Company recorded consolidated revenues of Rs 663 crs for the quarter ended 30 June, 2020, a growth of 6% over PY of Rs 623 crs. Profit before tax (before exceptional items) was at Rs 120 crs, a growth of 38% over PY of Rs 87 crs and the profit after tax was Rs 92 crs, registering a growth of 53 % over PY of Rs 60 crs.
Key Developments –
· High focus on Safety, amidst the pandemic
· Successful launch of 4 new hybrids : Maize (2), Bajra (1), Chilli (1)
· Strong focus on ensuring availability of products at the retail end - Raw material sourcing, production, logistic, dependence on multiple vendors/service providers for packing/processing/production
· Collection focused initiatives have supported strong performance on Collections in both Seeds and Crop Care - highest ever in Q1
· Digital acceleration: Marketing Campaigns, Sales Meetings, Trade Engagement,, Product Trials, Farmer and Employee engagement
· Capex program, generally on course, although delayed due to Covid lockdown effect. Metribuzin 500MTPA commissioned in July, although production is likely to be low due to market softness.
· New Formulation plant is expected to be commissioned in phases in Dec 2020 and Mar 2021