Rallis India leaps 6%, hits record high as Q1 net profit grows 53% YoY

As regards Covid-19, the company said it had above 90 per cent adherence to supply plans despite Covid-19-induced lockdown and labour issues.
Shares of Rallis India surged 6 per cent and hit fresh record high at Rs 325 on the BSE on Thursday after the company's consolidated net profit in the April-June, 2020 quarter jumped 53 per cent to Rs 92 crore. During the same quarter last year, the company's PAT stood at Rs 60 crore. 

Besides, the Tata Chemicals' subisidiary's consolidated revenue grew 6 per cent to Rs Rs 663 crore for the quarter under review as against Rs 623 crore in the same quarter of FY20.

"We have registered a 13.5 per cent revenue growth during Q1 for domestic crop care business on account of robust demand and a 3 per cent revenue growth in seeds sales over the previous year despite the challenges faced," Rallis India Managing Director and CEO Sanjiv Lal said.

The farming and agr-based company involved in manufacturing of soil conditioners and crop protection chemicals, reported an EBITDA (earnings before interest, tax, depreciation, and amortisation) of Rs 128 crore, compared with Rs 95 crore, logged in Q1FY20. 

"Price realization in some products and better product mix leading to improvement in EBIDTA percentage, coupled with lower fixed cost... The company has opted for lower Income tax rate from current year. The effective tax rate is 23.53 per cent as against 30.43 per cent in same period in PY," it said in a statement.

As regards Covid-19, the company said it had above 90 per cent adherence to supply plans despite Covid-19-induced lockdown and labour issues.

"The company saw 26 per cent top line product growth in Domestic Crop Protection business and improved cash from Operations, due to strong collections despite higher inventory. Deliberate Raw Material Inventory stock up to cope with Covid-19 challenges," it said.

In the April-June quarter, ace investor Rakesh Jhunjhunwala had bought an additional 725,000 equity shares of the company. He owns stake through his two accounts -- Rakesh Radheshyam Jhunjhunwala (7.64 per cent) and Rakesh Jhunjhunwala (2.67 per cent). His combined holding in the Tata Group Company has increased to 10.31 per cent in June quarter, and is at the highest level since March 2016 quarter. At the end of March 2020 quarter, he held 9.93 per cent stake in the agrochemicals company. READ HERE

At 10:05 am, the stock was trading nearly 4 per cent higher at Rs 318 on the BSE as against a 16 points, or 0.04 per cent, rise in the benchmark S&P BSE Sensex at 37,887 level.

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