Rallis India (RALLIS) Q4 97/98 earnings summary

Executive summary

• FY1997-98 revenue reached Rs 121,721.51 lacs and profit after tax was Rs 2,303.09 lacs, with sales and profit growth despite adverse agrochemical conditions.

• Recommended equity dividend of 50%; an interim 14% dividend was paid on the 14% cumulative redeemable preference shares.

Financial highlights

• Sales were Rs 120,611.99 lacs versus Rs 116,258.88 lacs; other income was Rs 1,109.52 lacs versus Rs 833.37 lacs.

• Profit before tax was Rs 2,723.09 lacs versus Rs 2,497.96 lacs; profit after tax was Rs 2,303.09 lacs versus Rs 2,280.00 lacs.

• Operating profit before interest, VRS charges and depreciation was Rs 8,352.97 lacs versus Rs 8,505.21 lacs; interest expense declined to Rs 4,139.55 lacs from Rs 4,449.31 lacs.

• VRS charges were Rs 393.28 lacs versus Rs 710.27 lacs; depreciation was Rs 1,097.05 lacs versus Rs 847.67 lacs.

Outlook and guidance

• Agrochemicals manufacturing capacity was planned to expand through acquisitions; additional products and strategic alliances were intended to support export growth.

• New seed varieties across additional crops were planned; two products from the R&D pipeline were expected to enter the market the following year.

• Fine chemicals research was directed toward new products and botanical medicines to improve profitability; two agrochemical products were targeted for launch within two years.

• Rallis Industrial Chemicals expected improved FY1998-99 profitability, supported by plant efficiency and the successful commissioning of Malathion production.