Rallis India Limited, a Tata group company and a leading agrochemical player in India, announced excellent financial performance for the year ended 31st March 2008.
YoY, the net sales of the company rose by just 8% at Rs.692.16 crore. This is probably one of the rare companies to post a fall in its total expenses, which actually come down by 12% and this too helped the bottomlines substantially. EBIDTA was up by a whopping 70% at Rs.164.90 crore. PBT rose 1.65 times at Rs.146.18 crore. OPM was up from 15.07% to 23.82%. The company’s taxation shot up by over 6 times to Rs.20.98 crore and this did not dent the PAT much, which was infact up by a whopping 115% at Rs.125.19 crore. NPM doubled from 9.04% to 18.09%.
On an equity of Rs.11.99 crore, the EPS, on a face value of Rs.10 per share, stood at Rs.98.02. The company declared a very generous dividend of 180% as against 80% last year.
Its superlative performance during the year has been driven by significant improvements in the operations. The company has also earned an exceptional income of Rs 87.38 crore in FY08 as against Rs. 54.12 crore in FY07. While it has benefited from the exceptional income, the operational improvement has contributed significantly to its profit growth. The performance of the company has been driven by the higher volumes of its key brands. Its recently launched brand Applaud has performed extremely well in the rice areas across the country and has become the number one choice of rice growers for control of Brown Plant Hoppers. The company launched four new products in the Indian market during the year namely Takumi, Sedna, Royal and Ishaan. It has obtained more than 20 new registrations in different countries across the globe. The company also obtained a joint registration for one of its key product in the US market during the year. Disha, the enterprise value creation programme and Apollo, the initiative to drive international business growth contributed well to the year’s performance.
Currently quoted at Rs.460, Rallis is a very good stock, stay invested. One can also invest for long term on declines.
YoY, the net sales of the company rose by just 8% at Rs.692.16 crore. This is probably one of the rare companies to post a fall in its total expenses, which actually come down by 12% and this too helped the bottomlines substantially. EBIDTA was up by a whopping 70% at Rs.164.90 crore. PBT rose 1.65 times at Rs.146.18 crore. OPM was up from 15.07% to 23.82%. The company’s taxation shot up by over 6 times to Rs.20.98 crore and this did not dent the PAT much, which was infact up by a whopping 115% at Rs.125.19 crore. NPM doubled from 9.04% to 18.09%.
On an equity of Rs.11.99 crore, the EPS, on a face value of Rs.10 per share, stood at Rs.98.02. The company declared a very generous dividend of 180% as against 80% last year.
Its superlative performance during the year has been driven by significant improvements in the operations. The company has also earned an exceptional income of Rs 87.38 crore in FY08 as against Rs. 54.12 crore in FY07. While it has benefited from the exceptional income, the operational improvement has contributed significantly to its profit growth. The performance of the company has been driven by the higher volumes of its key brands. Its recently launched brand Applaud has performed extremely well in the rice areas across the country and has become the number one choice of rice growers for control of Brown Plant Hoppers. The company launched four new products in the Indian market during the year namely Takumi, Sedna, Royal and Ishaan. It has obtained more than 20 new registrations in different countries across the globe. The company also obtained a joint registration for one of its key product in the US market during the year. Disha, the enterprise value creation programme and Apollo, the initiative to drive international business growth contributed well to the year’s performance.
Currently quoted at Rs.460, Rallis is a very good stock, stay invested. One can also invest for long term on declines.
Source: Sptulsian.com
