April 26, 2018

Rallis India's FY18 revenues up at Rs1808 crore

Mumbai: Rallis India, a Tata Enterprise and a leading player in the Indian crop protection industry, announced its financial results for the quarter and year ended March 31, 2018.

According to the requirement of Ind AS and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, revenue for the corresponding previous quarter ended March 31, 2017, and year ended March 31, 2017, are reported inclusive of Excise Duty.

The Government of India has implemented Goods and Service Tax (GST) from July 1, 2017, replacing Excise duty, Service Tax and various other indirect taxes. As per Ind AS 118, the revenue for the quarters ended March 31, 2018, and December 31, 2017, are reported net of GST.

Standalone and consolidated key highlights – Q4

Rallis standalone recorded revenues of Rs349 crore (PY Rs347 crore) for the quarter ended March 31, 2018. Profit before tax (before exceptional items) was at Rs35 crore with total comprehensive income at Rs26 crore.

The company recorded consolidated revenues of Rs371 crore (PY Rs367 crore) for the quarter ended March 31, 2018. Revenue net of Excise was at Rs371 crore (PY Rs349 crore) grew by 6 percent. Profit before tax (before exceptional items) was at Rs25 crore and total comprehensive income at Rs21 crore.

Standalone and consolidated key highlights – FY18

Rallis standalone recorded revenues of Rs1516 crore (PY Rs1490 crore) for the year ended 31 March, 2018. Profit before tax (before exceptional items) was at Rs191 crore and total comprehensive income at Rs141 crore.

The company recorded consolidated revenues of Rs1808 crore (PY Rs1768 crore) for the year ended March 31, 2018. Revenue net of Excise was at Rs1791 crore (PY Rs1664 crore) grew by 8 percent. Profit before tax (before exceptional items) was at Rs227 crore (Rs222 crore) with total comprehensive income at Rs167 crore.

Commenting on the performance and developments, V Shankar, managing director and CEO, Rallis India, said, “I am pleased to report better market performance over last year driven by volume growth in both domestic and international businesses. Northeast monsoon which was forecasted to be normal ended at below 11 percent departure. Overall the Rabi cropping acreages were down by 1 percent while paddy and pulses improved, wheat acreages were down over last year. Our suite of solutions has enabled us to help farmers in multiple crops and notably in paddy which has registered significant growth.

“Rallis Samrudh Krishi ® (RSK) our solution based approach to create value for farmers by enhancing productivity through end -to-end Agri solutions has been scaled up to touch 9 lakh farmers during the year. We have recorded good improvement in farm yields along with farmer income enhancement driven by improvement in quality and optimization of cost through customized package of practices. This has been an important driver for our revenue growth during the quarter despite market challenges, increased raw material prices and pricing pressure.

“Our new launches Odis, Cenator and Pulito have registered good growth in 2017-18 and will be key drivers of growth going forward. The forecast for a normal monsoon augurs well for the coming Kharif season. Our performance in the International business continues to be better than last year due to improving situation in key markets such as Brazil and strong demand for herbicides.”

Rallis Samrudh Krishi ® (RSK) intends to create value to farmers through close field level working disseminating the right growing practices, products and information. This leads to a better quality crop along with optimised cost and delivering improved yields.

The use of e-interventions – Drishti, Samadhan and Sampark will be the key in the execution. Drishti will provide the predictive advisory services - accurate pest forecast (critical pest only, where support is a delight factor), Samadhan app will give the access to farmers for customised and dynamic PoP, weather forecast, latest update on crop output prices, flash news on agriculture, can connect with experts for problem solving etc. Sampark app will give the access to crop advisors on complete PoP besides full details on the basket of products.