Rallis India Q2 net flat at Rs 59cr on higher interest cost

6762 Investors following Rallis India. Share this News with them.

0

Like this story, share it with millions of investors on M3

Rallis India Q2 net flat at Rs 59cr on higher interest cost

The agrichemical company Rallis India's net profit for the second quarter was flat yoy at Rs 59 crore, although the net sales rose 18% at Rs 430 crore.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ News and Notices about Rallis India See interviews with Rallis India Management See what other Experts & Brokerages are saying about Rallis India See previous Results of Rallis India Rallis India BSE | NSE 31/05/12 Are Mutual Funds betting on Rallis India?

Moneycontrol Bureau

The agrichemical company Rallis India 's net profit for the second quarter was flat yoy at Rs 59 crore, although the net sales rose 18% at Rs 430 crore.

Despite rise in sale, higher interest cost incurred on investment made to acquire seeds research company Metahelix and setting up a new plant at Dahej, hurt profits in the second quarter, said V Shankar, managing director and chief executive officer. The company had acquired a majority stake in Bangalore-based Metahelix Lifesciences for Rs 99.5 crore in December 2010.

Fluctuating rains in June-September period also lead to poor sales of some of the company's products like Herbicides during the quarter, he said in an interaction with reporters.

Rallis India's EBITDA for the three month period rose 10% YoY to Rs 98 crore.

During the quarter, the company incurred an interest expense of Rs 3.91 crore versus a gain of Rs 6 lakh in the year ago quarter.

Rallis India's total expenses in the second quarter were also higher at Rs 349.3 crore versus Rs 283.8 crore in the year ago quarter.

Shankar said, Dahej plant is fully operational and it should reach full capacity by December or January. The company is eyeing global customers for contract manufacturing at the Dahej plant.

India received normal rains during the monsoon period. Rallis India expects this will lead to a bumper crop harvest. It is also expecting a good rabi season, which should lead to strong sale in the third quarter.

Today, Rallis India closed at Rs 172.30, down Rs 0.10, or 0.06% with volumes of 113,245 shares. It has touched an intraday high of Rs 176.00 and an intraday low of Rs 170.30. There were pending buy orders of 60 shares, with no sellers available.