Rallis India Limited, a Tata company and a leading agrochemical player in India, kept up its track record and announced another set of good results for second quarter ended 30th Sept 2009. A company with a widespread basket of pesticides, given the current thrust of the Govt on agriculture and rural India, this is the perfect company to capitalize on.
Seasonally, the first quarter always shows lower earnings as sowing begins only after the first quarter and hence Q1FY10, keeping with the cycle had showed a subdued performance. And compared to that Q2 has been spectacular and this is despite the poor monsoons. New product launches, geographical market focus and cost control is what helped. Very efficient management of working capital helped the company scale down its interest costs too.
For Q2FY10, sequentially, net sales rose 93% and net profit was up 385% and YoY, it was up 13% and 10% respectively. For H1FY10, net sales was up at Rs.487.30 crore, up 6% and net profit was at Rs.55.13 crore, up 20%. Interest outgo for current first half was at less than one crore at Rs.78 lakhs, down from Rs.1.83 crore in H1FY09.
Tata Chemicals hiked its stake in the company from 9.4% in Q1FY10 to 45.97% in Q2FY10. It purchased 35.80% stake in Rallis being held by other Tata group firms like Tata Tea (24.52%), Tata Sons (7.52%), Tata Investment Corporation (2.42%) and Ewart Investments (1.35%). Post this, apart from Tata Chemicals, currently, Tata Investment Corp holds 0.08% and Ewart Investments has 0.04%.
Rallis plans to invest Rs.150 crore in the first phase of its ongoing project at Dahej in Gujarat, expected to be commissioned between April-June 2010. Phase I will enhance the company’s existing products and later in Phase II, it will cater to contract manufacturers. Once fully commissioned, this plant is expected to add Rs.500 crore to the topline by FY12.
Source: Internet (By S P Tulsian)
Seasonally, the first quarter always shows lower earnings as sowing begins only after the first quarter and hence Q1FY10, keeping with the cycle had showed a subdued performance. And compared to that Q2 has been spectacular and this is despite the poor monsoons. New product launches, geographical market focus and cost control is what helped. Very efficient management of working capital helped the company scale down its interest costs too.
For Q2FY10, sequentially, net sales rose 93% and net profit was up 385% and YoY, it was up 13% and 10% respectively. For H1FY10, net sales was up at Rs.487.30 crore, up 6% and net profit was at Rs.55.13 crore, up 20%. Interest outgo for current first half was at less than one crore at Rs.78 lakhs, down from Rs.1.83 crore in H1FY09.
Tata Chemicals hiked its stake in the company from 9.4% in Q1FY10 to 45.97% in Q2FY10. It purchased 35.80% stake in Rallis being held by other Tata group firms like Tata Tea (24.52%), Tata Sons (7.52%), Tata Investment Corporation (2.42%) and Ewart Investments (1.35%). Post this, apart from Tata Chemicals, currently, Tata Investment Corp holds 0.08% and Ewart Investments has 0.04%.
Rallis plans to invest Rs.150 crore in the first phase of its ongoing project at Dahej in Gujarat, expected to be commissioned between April-June 2010. Phase I will enhance the company’s existing products and later in Phase II, it will cater to contract manufacturers. Once fully commissioned, this plant is expected to add Rs.500 crore to the topline by FY12.
Source: Internet (By S P Tulsian)
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