Saturday, July 17, 2010

RALLIS INDIA = Q1 FY2010 RESULTS = SALES & PROFITS IMPROVE = FY11 PROMISING



RALLIS INDIA LIMITED
Q1FY2011 RESULT
COMPARISON
RALLIS INDIA has declared slightly improved results for Q1 FY2011 – compared to the corresponding quarter of Q1 fy2010.
Net Sales at Rs.196Cr - is higher by 20% to Rs.163Cr of Q1Fy10.
Profit from Operations at  Rs.19 Cr – is higher by 19.1% to Rs.16 Cr in Q1 FY10.
Net Profit  at Rs.14.84 Cr - is higher by 57.5% to Rs.9.42 Cr in Q1 FY10.
On a face Value of Rs.10, the Basic EPS at Rs.7.63 – is higher by 22.1% to Rs.6.25 in Q1 FY10 - even after Bonus Issue of 1:2.
Paid Up Equity has risen to Rs.19.45 Cr – from Rs.12.96 Cr – on the back of Bonus shares issued in the ratio of 1:2, on crossing the Net profit mark of Rs.100 Cr in the FY2010. It is seen from previous years’ – that Sales of products and profits rise high after the first quarter only.
Current Market Price is Rs.1209/-. Last year total EPS was close to Rs.80. If the same percentage (22.1%)improvement (as of Q1FY11) is there in EPS in all Quarters, EPS can be around Rs.100/-.This gives a PE Ratio of 12.09. We need to watch if Rallis achieves this on Post Bonus Equity in all Quarters. In any case, in view of its good product range and further expansion plans - RALLIS is a good share to acquire.


RESULTS IN FIGURES :


Jun-10
Dec-09
Sep-09
Jun-09
dif%
Dec-08
Net Sales
19604
20287
31664
16333
20
20763
87513
Other OptgIncome
675
389
421
312
116.3
657
2184
SIT&WIP
-2137
-566
140
-1073
99.2
504
-1000
Raw Materials
11518
11492
15980
8691
32.5
12290
45158
Traded Goods
2805
888
1793
2490
12.7
924
6181
Employees Cost
1843
1615
1560
1782
3.4
1572
6673
Depreciation
358
369
426
358
0
386
1523
Other Expdr
3985
2969
5161
2796
42.5
3135
15241
Total Expendr
18372
16767
25060
15044
22.1
18811
73776
Profit.Operations
1907
3909
7025
1601
19.1
2609
15921
Other Income
164
274
107
114
43.9
42
658
Interest
-90
97
55
23
-491.3
62
227
Excepti.Items
-
548
208
199

148
1133
P B T
2161
3538
6869
1493
44.7
2441
15219
Tax expense
677
1132
2298
551
22.9
884
5115
P A T
1484
2406
4571
942
57.5
1557
10104
Net Profit
1484
2406
4571
942
57.5
1557
10104
Dividend.%
-
-
-
-

-
180
Face Value.Rs
10
10
10
10
0
10
10
Paid Up Equity
1945
1296
1198
1198
62.4
1198
1296
Reserves
-
-
-
-

-
40983
Basic EPS A EI
7.63
19.17
37.56
6.25
22.1
11.37
79.57
Diluted EPS A EI
7.63
19.17
37.56
6.25
22.1
11.37
79.57
Basic EPS B EI
7.63
19.17
37.56
6.25
22.1
11.37
79.57
Diluted EPS B EI
7.63
19.17
37.56
6.25
22.1
11.37
79.57
Public holding.%
49.83
49.83
53.9
54.8
-9.1
54.8
49.83


ANNOUNCEMENTS
TO THE EXCHANGE

16-07-2010        Rallis India Limited has informed the Exchange regarding the press release dated July 16, 2010 titled "Rallies Q1 Profit rises 58%". 
16-06-2010        Rallis India Limited has informed the Exchange regarding a press release dated June 16, 2010 , titled "Syngenta and Rallis India enter into a co-operation agreement".
22-04-2010        Rallis India Limited has informed the Exchange regarding a press release dated April 22, 2010, titled "Rallis PAT crosses Rs. 100 crores for the first time, Board recommends 1 for 2 Bonus and Rs. 10/- per share final dividend". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).

WHAT COMPANY SAYS..
IN ANNUAL REPORT…

OPPORTUNITIES AND OUTLOOK
The fundamentals of the Agriculture sector continue to be robust and will drive growth in the years to come. With the economy showing signs of recovery, demand for food, fodder and fuel will further go up and should lead to robust growth in agriculture. The encouraging prices of agricultural commodities are expected to continue and will lead to increased investment by the farmers to protect his crop as well as to improve his productivity. New generation products like Ergon, which enhances yield and controls diseases and Ralligold, which is a biological product which improves growth and crop yield will drive business growth. With labour shortage increasing in rural areas, farmers are looking for labour saving options and this will lead to a higher demand for herbicides in the coming days.
The enterprise value creation programme DISHA (Drive Innovative Solutions with Hyper Achievements) which aims at re-engineering various processes and activities across the Company to generate value and the International business growth programme APOLLO are also expected to contribute well to the overall growth agenda of the organization. The EAGLE (Expansion & Aggressive Growth through Leadership & Excellence) initiative, which is intended to improve the market share and propel the Company to leadership position, has taken off well in the last year. This is being rolled out to all regions in the coming year and we expect to see results from the initiative by the end of the coming year.
RISKS, CONCERNS AND THREATS
The dependence of our business on monsoon has been evident in the first half of last year, where poor rainfall has resulted in drop in planned sales in some of the regions. Farmers’ willingness and ability to spend will be an important driver to demand generation. Strong support produce prices and better availability of credit will ease the pressure on the farming community. Exchange rate fluctuations between Dollar and Rupee could also impact revenues as well as costs in the foreseeable future.
INITIATIVES TAKEN DURING 2009-10
Your Company has, during the year, launched an initiative called EAGLE (Expansion & Aggressive Growth through Leadership & Excellence). This programme is intended to enhance the market share of the Company and take it to leadership position. Launched in a limited way during the year, it will be extended to all regions of the country in the coming year. The Company expects to see results from the initiative by the end of the coming year.
The enterprise value creation programme DISHA and the International Business growth programme APOLLO are expected to continue to contribute well to the overall growth of your Company.
RESEARCH & DEVELOPMENT (R&D)
During the year 2009-10, the Company’s Research and Development efforts, through its New Product Development (NPD) process, helped the Company to launch a new product, Ergon 50 SC (Kresoxim-methyl). The product was well received by the farmers on rice and grapes.
Field evaluation of lead molecules identified under New Millennium Indian Technology Leadership Initiative (NMITLI) project is in progress on key commercial crops.

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