Rallis India (RALLIS) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sales were slightly higher YoY; profit before tax rose 20% to Rs.3,215.71 lacs despite higher interest charges. ocument-source�0�/document-source�

• Voltas agrochemicals and chemicals operations were acquired, supporting pesticides growth and broadening the portfolio and export reach. ocument-source�5�/document-source�

• A 60% dividend was recommended; reported EPS was Rs.18. ocument-source�5�/document-source��document-source�27�/document-source�

Financial highlights

• Sales were Rs.125,619.04 lacs vs Rs.120,611.99 lacs; other income was Rs.1,517.34 lacs vs Rs.1,109.52 lacs. ocument-source�14�/document-source�

• Profit before tax was Rs.3,215.71 lacs vs Rs.2,723.09 lacs; profit after tax was Rs.2,740.71 lacs vs Rs.2,303.09 lacs. ocument-source�14�/document-source�

• Interest charges increased to Rs.4,911.75 lacs from Rs.4,139.55 lacs; VRS compensation of Rs.346.72 lacs was reported as an extraordinary item. ocument-source�14�/document-source�

• Group sales totaled Rs.133,251 lacs vs Rs.123,708 lacs; group profit after tax was Rs.3,068 lacs vs Rs.2,472 lacs. ocument-source�10�/document-source�

Outlook and guidance

• Three products developed at the new R&D centre were planned for introduction in FY1999-2000; longer-term product development aimed at commercialization over five years. ocument-source�6�/document-source��document-source�9�/document-source�

• Fertiliser capacity and sales mix were expected to benefit from NPK, Tracel and organic fertilisers; additional seed research investment targeted broader farmer needs. ocument-source�5�/document-source�

• Pharmaceutical growth plans included expanding the product range and pursuing international product tie-ups; Zimbabwe joint venture participation was expected to support expansion. ocument-source�6�/document-source�

• Y2K remediation and replacement work was expected to finish by October 1999, with estimated total cost of Rs.2 crores. ocument-source�6�/document-source�