Rallis India Q3 net profit down 77.26%

Jan 20 2012, 21:20 IST
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Rallis India, a Tata enterprise, today reported huge 77.26 per cent decline in net profit. Rallis India, a Tata enterprise, today reported huge 77.26 per cent decline in net profit.
SummaryThe company's net profit stood at Rs 33.69 crore in the corresponding quarter of FY11.

Rallis India, a Tata enterprise, today reported huge 77.26 per cent decline in net profit at Rs 7.66 crore for the quarter ended December 31, compared to last year following shut down of manufacturing operations at Turbhe, forex loss and erratic Monsoon.

The company's net profit stood at Rs 33.69 crore in the corresponding quarter of FY11.

"While acreages during rabi increased for paddy and wheat, the productivity was impacted on account of deficient North East monsoon. Its timing and distribution affected farming activity," Rallis India Managing Director and CEO V Shankar told reporters.

The profit for the quarter also included non-recurring charge of Rs 24.24 crore on account of costs relating to the shut down of Turbhe Manufacturing operations in Navi Mumbai and a net forex loss of Rs 8.21 crore, he added.

However, the company revenue for the quarter grew by 18.6 per cent to Rs 317.86 crore compared to Rs 268.05 crore in the corresponding quarter of 2010-11.

Talking about the pulses programme of the company, Shankar said, Rallis which entered Maharashtra is already covering 50,000 acres in three districts and want to expand

further. Under this programme, the company encourages farmers to grow pulses by providing them technology and quality seeds and buys the crop from them.

"We are also getting inquiries from states like Madhya Pradesh and may soon move there," he said.

Talking about its Dahej manufacturing unit in Gujarat, he said, it is ramping up quite well and its two lines are already in operations crossing 75 per cent capacity utilisation.

"We are also exploring contract manufacturingopportunities with global companies for our Dahej plant," he added.

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