Rallis India (RALLIS) Q4 99/00 earnings summary

Executive summary

• FY1999-2000 sales rose 14% YoY to Rs 1,432.51 crore, while PBT fell 22.1% to Rs 25.05 crore, pressured by higher interest, fertilizer losses and lower pesticide prices.

• PAT was Rs 24.58 crore vs Rs 27.41 crore; reported EPS was Rs 18.47. An interim equity dividend of 60% was paid, with no final dividend recommended.

Financial highlights

• Total income reached Rs 1,446.39 crore vs Rs 1,271.36 crore; interest expense rose to Rs 53.54 crore from Rs 49.12 crore, while depreciation was Rs 13.65 crore vs Rs 12.26 crore.

• PBT declined to Rs 25.05 crore from Rs 32.16 crore; tax provision was Rs 0.47 crore vs Rs 4.75 crore, and PAT was Rs 24.58 crore vs Rs 27.41 crore.

• Group sales were Rs 1,579.33 crore vs Rs 1,332.51 crore; group PBT was Rs 27.62 crore vs Rs 35.77 crore and group PAT Rs 26.95 crore vs Rs 30.68 crore.

Outlook and guidance

• New pesticide products Nagata, subject to registration, and a pipeline of domestic and export products were expected to support launches in coming years.

• Specialty fertilizers, including organic, water-soluble and micronutrient products, were growing and expected to improve fertilizer profitability.

• Ralchem expected tailor-made emulsifiers and DETC to contribute significantly to business growth in 2000-01; its technical and liquid-formulation output expanded materially in FY1999-2000.

• Finance subsidiary planned to expand hire-purchase activity in 2000-01.