Report of Q3 FY19 results: Standalone Revenue increases by 9% and Consolidated Revenue by 7%.
Rallis India Ltd., a market leader in the domestic crop protection sector announced its financial results for the quarter ending Dec 31st, 2018. With more than 160 years of experience of servicing rural markets and with the most comprehensive portfolio of crop protection chemicals for Indian farmers, Rallis is known for its deep understanding of Indian Agriculture.
On a consolidated basis, the Company registered revenues of Rs 417 crs (Rs 390 crs) up by 7% for the quarter ended December 31st, 2018. Total comprehensive income stood at Rs 14 crs. On a standalone basis, revenues totaled Rs 388 crs (Rs 357 crs) up by 9% for the quarter ended December 31st, 2018, with total comprehensive income at Rs 23 crs (Rs 34 crs).
Highlights
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Revenue growth of 7% on the back of steady performances in Domestic and International markets. Exports revenue expanded owing to better performance in US & Europe
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EBITDA amounted to Rs. 28 crs; resulting in margins of 7% for the quarter. Higher input cost – imports from China resulted in profitability and margin compression.
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PAT stood at Rs. 14 crore. Margins remain constrained owing to higher raw material prices.
The key developments include:
The Board of Directors of the Company has accorded its consent to the merger of Metahelix Life Sciences Ltd (a wholly owned subsidiary of the Company) with the Company under a Scheme of Amalgamation subject to necessary statutory approvals from various regulatory authorities .
The Company’s strategic initiatives towards driving domestic and international business are starting to deliver positive results. Some of these initiatives include:
Domestic business –
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Refreshing distribution channel refresh – Adding distributors to enhance growth
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Revitalized dealer incentive structure: Higher variable incentives linked to revenue targets
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Expansion of credit period to support select product growth
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Increasing focus on specialty product launches
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Improving connect between distributors and top management
International business –
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Investing in capacity expansion
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Registration in International markets
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Increased higher margin exports to smaller South Asian countries
Commenting on the performance and developments, Mr. R. Mukundan, Managing Director & CEO said, “We have delivered a steady revenue performance for the quarter despite multiple headwinds in the domestic market. However recent margin pressure experienced across the industry has impacted profits. Rallis is in the process of a strategic transformation with efforts being directed towards leveraging our strengths in both domestic and international markets. We are working towards improving the depth and width of our product portfolio by leveraging our in-house R&D capabilities. The board has approved Rs 100Cr investment expanding capacity in key products. We are confident that our initiatives, coupled with supportive macros, will help us deliver sustainable value for our shareholders. “
