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Rallis India, the crop protection subsidiary of the Tata Chemicals, has reported that its net profit was down 14 per cent at Rs 19 crore in the fourth quarter ended March 31, against Rs 22 crore in the same period last year. However, the company's sales were up 16 per cent at Rs 234 crore (Rs 202 crore) in the quarter under review.
Mr V. Shankar, Managing Director, Rallis India, said the drop in the sales of a few high margin products especially that of paddy has led to a fall in profit in the fourth quarter despite sales going up.
Fiscal profit up
For the fiscal 2010-11, Rallis India net profit was up 25 per cent at Rs 126 crore (Rs 101 crore) while sales improved 20 per cent to Rs 1,047 crore (Rs 875 crore). The company has recommended a dividend of Rs 11 a share. The total dividend for the fiscal under review stands at Rs 20 a share.
To enhance the liquidity of its shares in the capital market, the board has approved sub-division of shares from the face value of Rs 10 each fully paid up into 10 equity shares of Re 1 fully paid-up.
Rallis expects the much-delayed new plant at Dahej to go on stream in this quarter adding a turnover of Rs 500 crore over the next three years. The plant, which was slated to start operation in June last year, has faced hurdles in receiving government approval for various infrastructure facilities and fine tuning of the project design. The new plant will have a capacity of 5,000 tonnes a year to produce a combination of the company's products.
The contribution of international business to its revenue has gone up to 25 per cent in FY'11 against 20 per cent recorded in the preceding fiscal.
New pulses varieties
Rallis plans to increase the coverage of pulses grown under its guidance from 1,000 acres in this fiscal. The move will help the company widen the reach and launch new varieties of pulses under its retail initiative iShakti, said Mr Shankar.
Though there are predictions of good south-west monsoon, the prospects of kharif output will depend much on the timely onset of monsoon, spatial distribution and variability over time, he added.
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