Rallis India rallies over 3%

Rallis India is doing well today morning on the back of its good performance for Q2FY14. The stock is up over 3% at Rs.164 and a week ago, it had hit a new 52-week high at Rs.174.10.  A Tata Enterprise company in the area of crop protection, , its consolidated net sales rose 24% (YoY) at Rs.597 crore and net profit came in at Rs.75 crore, up 21%. For H1FY14, the company crossed two milestones – firstly revenue crosses Rs.1000 crore, coming at Rs.1006 crore and secondly, net profit crosses Rs.100 crore, coming in at Rs.102 crore. These are excellent numbers given the fact that it had ended FY13 with a net profit of just Rs.119 crore and with two more quarters to go, FY14 holds a lot of promise.

This is one of the best seasons for such agri companies and monsoon has been very good this year, Kharif sowings registered a 4.4% increase and this means we will that a corresponding increase in foodgrains production. Also the good rainfall means the groundwater has increased and so has reservoir storage which means good crop next kharif too.