Rallis India, the Rs 1,206-crore agrochemical major has reported a 13.12 per cent decline in net profit to Rs 15.32 crore for the second quarter ending June 30, 1998 as against Rs 17.33 crore in the corresponding period last year. While sales during the period has also declined by 7.6 per cent to Rs 373.44 crore as against Rs 404.26 crore in the corresponding period last year.
The company release said the government has not yet finalised the subsidy on di-ammonium phosphate and muriate of potash for the kharif season. If the Bureau of industrial costs and prices (BICP) norms were taken to calculate the subsidy, there would be additional recovery of costs incurred on the imports of fertilisers. Hence the net contribution would be higher.
Interest burden of the company has increased substantially by 79.36 per cent to Rs 13.56 crore as against Rs 7.56 crore last year. The high interest cost is attributed to the non-disbursement of the subsidy by the government.
Other income of the company increased by 48.63 per cent to Rs 2.17 crore as against Rs 1.46 crore last year. Gross profit during the period declined by 22.25 per cent to Rs 20.37 crore as against Rs 26.2 crore last year.
The company also had an additional profit of Rs 1.90 crore which was attributed to sale of assets and investments. While depreciation burden was at Rs 2.59 crore close to last year figure of Rs 2.5 crore. The tax liability declined 31.76 per cent to Rs 4.36 crore.
