Rallis India gains after strong Q3 earnings

Rallis India rose 1.01% to Rs 179.60 at 9:44 IST on BSE after consolidated net profit surged 38% to Rs 30 crore on 17% growth in net sales to Rs 396 crore in Q3 December 2013 over Q3 December 2012.

The Q3 result was announced after market hours on Thursday, 16 January 2014.

Meanwhile, the S&P BSE Sensex was down 50.61 points or 0.24% at 21,214.57.

On BSE, so far 10,000 shares were traded in the counter as against average daily volume of 37,788 shares in the past one quarter.

The stock hit a high of Rs 181.70 and a low of Rs 177.60 so far during the day. The stock had hit a 52-week high of Rs 184.50 on 7 January 2014. The stock had hit a 52-week low of Rs 110.10 on 1 April 2013.

The stock had outperformed the market over the past one month till 16 January 2014, advancing 6.72% compared with the Sensex's 2.93% rise. The scrip had also outperformed the market in past one quarter, surging 6.85% as against Sensex's 3.49% gain.

The mid-cap company has equity capital of Rs 19.44 crore. Face value per share is Re 1.

Profit from operations (before exceptional items, other income and forex loss/(gain)) rose 18% to Rs 46 crore in Q3 December 2013 over Q3 December 2012.

Commenting on the performance, Mr. V Shankar, MD and CEO, Rallis India said, "I am pleased that we have reached new highs in this quarter both in revenues and profits. While the domestic business stood its ground with the strengthening relationship through the farmer programmes, international business grew well due to robust demand of the key products. Our continued focus on connecting with farmers through Rallis Kisan Kutumba initiatives, strong brands and value creating initiatives in agri space led to robust revenue growth and exceeding the full year profit of previous year by 11% in the nine months".

Further Mr. Shankar said, "There were shifts in farmer preferences for crops and Rallis, with the help of a strong understanding of the field level changes, moved with agility to cater to the changing needs. Our focus on the new initiatives such as More Pulses programme, Samrudh Krishi, etc, continued with vigour. Our new products in the Plant Growth Promoter segment did well and our key brands recorded good growth".

Rallis India said that the three cyclones affected standing crops in certain areas and also led to drop in yields. Rabi sowings registered an increase of 5.4% and should translate into an increased foodgrain and pulses production, the company said. The good rainfall during these months have increased soil moisture content which should augur well going forward into the Rabi season, Rallis India said in a statement.

Rallis India is one of India's leading agrochemicals companies, with a comprehensive portfolio of crop-care solutions.

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