Rallis India posted a very good performance for Q4 and FY14. The company ende Q4FY14 with a consolidated net revenue at Rs.324 crore, up 16% (YoY) and net profit came in at Rs.19 crore, up 73%. For FY14, the performance was very good too, with net revenue rising 20% at Rs.1726 crore and net profit coming in at Rs.152 crore, up 28%.

The company has stated that its quarter performance was driven by both increase in volumes as well as value improvements due to price adjustments necessitated by the cost increases through the year. The margin improvement also reflected the gains from operating efficiencies, better cash management, tighter working capital control and lower interest costs. The company continues to concentrate on non-pesticide portfolio (NPP) and today, it contributes 30% to the topline.

The stock was in news a couple of days ago after it was known that Rakesh Jhunjhunwala has raised his stake in Rallis India to 10.08% from 9.13. As per the shareholding pattern as at 31^st March 2014, the Tata group, mainly through Tata Chemicals holds 50.09% stake and institutional holding has gone up from 18.53% in Q3 to 20.09% in Q4. FII holding is at 13.75%. Its interest service coverage ratio has doubled up from 18.06 in Fy13 to 32.63 in FY14, indicating a very healthy book. Cash balance has come down from Rs.26 crore to Rs.9 crore.