Rallis India

Rallis India posted a very good Q1FY17 performance with consolidated net profit jumping up over four times to Rs.174 crore from Rs.42 crore in previous Q1. This superlative jump in bottomline was on a mere 7% rise in total income at Rs.468 crore. Apart from keeping a tight leash on its operating costs, coming at 85% of total income v/s 89% (YoY), helped mainly by lower raw material prices, its EBITDA jumped up 26% at Rs.75 crore and margins also showed a smart spurt from 13.6% to 16.1%.

Apart from operational efficiency helping the performance, an exceptional income of Rs.158 crore, which was a profit earned on account of assigning leasehold rights to a plot of land in Mumbai to Ikea. Profit before adding this exceptional income was at Rs.62 crore, up 38% which is also pretty good.

Its wholly owned subsidiary Meiohelix Life Science also did well with revenues rising by 15% to Rs.200 crore and profit coming in at Rs.47 crore v/s Rs.36 crore, driven by higher volumes and belter operating efficiencies.

With kharif season sowing picking up, it is expected that in Q2 the company will reap a much richer harvest, even without any exceptional gain.