Slide 1: Welcome!
Welcome! V Shankar 27th April 2016 Copyright © Rallis India Limited. All rights reserved.
Slide 2: Performance Highlights: Q4 and 12 Months (consolidated)
Performance Highlights: Q4 and 12 Months (consolidated) Q4 – Net sales up by 9% at Rs. 342 Cr Q4 - PAT rises 51% to Rs. 32 Cr 12 Months – Net sales crosses Rs. 1611 Cr, drop of 10% 12 Months – PAT at Rs 143 Cr, drop of 9% Cash generated from operations Rs 233 Cr, up by Rs 165 Cr Board re
Slide 3: Financial Performance: Key Highlights vs Last Year
Financial Performance : Key Highlights vs Last Year Rs Crs Rallis Standalone Rallis Consolidated YTD YTD YTD YTD 14-15 15-16 14-15 15-16 Net Sales 1498.1 1290.9 1800.8 1611.6 EBITDA 253.41 207.39 277.1 230.18 EBITDA % 16.9% 16.1% 15.4% 14.3% Profit before tax* 205.8 164.99 221.6 185.7 Net Profit Aft
Slide 4: Agriculture & Industry 2015-16: Year context
Agriculture & Industry 2015-16: Year context Copyright © Rallis India Limited. All rights reserved.
Slide 5: Domestic Season
Domestic Season Live Mint TIMES OF INDIA 5 Copyright © Rallis India Limited. All rights reserved. #Source-Print & Electronic media and Rallis Internal Marketing information system
Slide 6: Rainfall Comparison
Rainfall Comparison KHARIF 2013 +6% KHARIF 2014 (-12%) KHARIF 2015 – (-14% ) Post Copyright Monsoon © Rallis 2013 +18% India Limited. Post Monsoon 2014 (-33%) All rights reserved. Post Monsoon 2015 (-23%)
Slide 7: Decrease in Crop Acreages in Kharif & Rabi
Decrease in Crop Acreages in Kharif & Rabi Area sown in Area sown in Area sown in YoY Change in 2015-16 Kharif Crops 2013-14 2014-15 2015-16 On 2013-14 On 2014-15 Rice 376.41 379.67 378.24 0% 0% Pulses 109.08 102.89 115.62 6% 12% Coarse Cereals 196.05 181.87 186.07 -5% 2% Oilseeds 194.91 177.98 185.
Slide 8: Major Areas Impacted
Major Areas Impacted #Source-Print & Electronic media and Rallis Internal Marketing information system 60 40 Uttar Pradesh – (-46 %) deficient Maharashtra – (-26%) deficient 40 20 20 0 02-Sep 09-Sep 16-Sep 23-Sep 30-Sep 05-Aug 12-Aug 19-Aug 26-Aug 08-Jul 01-Jul 15-Jul 22-Jul 29-Jul 17-Jun 24-Jun 0 -
Slide 9: Crop Prices- 2013 Vs Current Year
Crop Prices- 2013 Vs Current Year Price Rs/Qtl #Source:- http://agmarknet.dac.gov.in/PriceTrends 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 6500 4100 6000 3900 5500 3700 5000 3500 4500 3300 4000 3100 3500 2900 3000 2700 Cotton Soybean 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 2200 1600 20
Slide 10: Copyright © Rallis India Limited. All rights reserved. #Hindustan Times News- Dated 10 th
Copyright © Rallis India Limited. All rights reserved. #Hindustan Times News- Dated 10th Oct 2015 10
Slide 11: Rallis Focus Areas & Plans - 2015-16
Rallis Focus Areas & Plans - 2015-16 Other Crops Important Crops Paddy Cotton Pulses F&V (Potato, Cumin) AP, TN, CG, GJ, MH, KA, Important States MP, MH, KA All States WB, Gujarat WB, PB, HR PB, AP Down Against LY Shifting on Growth (Lac Acre)(All Seasons) 3% 7% 4% F&V compared to LY Down in Rabi We
Slide 12: Drop in Paddy Segment- 2015-16
Drop in PADDY Segment- 2015-16 Andhra Pradesh Significant drop in Paddy Acreages-overall Acreages Weeds De-growth by more than 12 lakh acre Paddy SB, LF Irrigation No irrigation support through Canal Water Blast, SB Rabi is the worst affected crop season Pests BPH Telangana Big Drop in Kha
Slide 13: Pulses: Dry Spells after initial rains impacted crop health
Pulses : Dry Spells after initial rains impacted the crop health Maharashtra Karnataka About 56 of the 59 taluks in north Karnataka region have been hit by the failure of North- east monsoon Below average rains have badly hit Production in the two states Daily supplies of pulses to Latur APMC is
Slide 14: Fruits & Vegetables – Our approach
Fruits & Vegetables – Our approach PER CAPITA EXPENDITURE ON FRUITS 30% 25% 19% 20% 14% 10% 0% 2000 2010 2020 ACTIONS TAKEN Demand Side Supply Side Drivers Drivers Realignment of resources Rising incomes & Daily Tracking Urban lifestyle leading Assured to more awareness & Acreages Helpline sup
Slide 15: Global Agchem Environment Year 2015-16
Global Agchem Environment Year 2015-16 15 Copyright © Rallis India Limited. All rights reserved.
Slide 16: 2015 – Agrochemicals sales dropped by 8.5%
2015 – Agrochemicals sales dropped by 8.5% down to the $51.84 billion Growth stagnant for the second year in a row. 2015 agricultural profitability going downward to a historic low level since 2002 All the major regions suffered a decline in nominal US dollar terms 16 Copyright © Rallis India
Slide 17: Brazil Market
Brazil Market The Brazilian agrochemical market plunged in dollar terms by almost a quarter (23%) in 2015 Brazil is recovering from its worst drought of 80 years , rains affected the wheat harvest, leading to delayed planting in Argentina and Brazil. Business for key products in Brazil was impacted
Slide 18: Domestic Agchem Environment Q4
Domestic Agchem Environment Q4 18 Copyright © Rallis India Limited. All rights reserved.
Slide 19: Financial Performance: Key Highlights vs Last Year (Q4)
Financial Performance : Key Highlights vs Last Year Rallis Consolidated Rs Crs Rallis Standalone Q4 Q4 Q4 Q4 14-15 15-16 14-15 15-16 Net Sales 280.7 307.2 314.8 342.0 9.4% EBITDA 44.02 46.05 44.4 41.9 EBITDA % 15.7% 14.9% 14.1% 12.3% Profit before 30.6 40.10 29.56 41.8 tax* Net Profit After Tax 23.7
Slide 20: Status of Reservoirs in India
Status of Reservoirs in India 13th April 2016 23 per cent of capacity is available – 33% below last year. Western region with 27 reservoirs (Including Maharashtra and Gujarat), mere 18 per cent (36% LY) Southern region (all states) with 31 reservoirs at 15 % 4 reservoirs – 3 in Maharashtra and
Slide 21: Rabi Sowing
RABI SOWING 700 0% -1% -11% 600 -5% -7% -10% 500 -14% -15% -15% 400 -20% 300 -25% 200 -30% 100 -34% -35% 0 -40% Wheat Rice Total Pulses Coarse Cereals Oilseeds Total Area sown in 2013-14 Area sown in 2014-15 Area sown in 2015-16 YoY Change in 2015-16 On 2013-14 Sowing is down by 3% as compared to la
Slide 22: Q4 Outlook
Q4 Outlook Focus Areas - Plans Low Soil Moisture & • Fruit Crops- Apple, Pomo, Banana, Mango Shortage of Irrigation • Cumin : Priority to spend on Irrigation • Crop Shift- On Pulses, Vegetables (Drip) Low Acreages of Cereal Crops • Potato- West Bengal, Gujarat (Irrigation) : Focus on Crops which req
Slide 23: Copyright © Rallis India Limited. All rights reserved.
23 Copyright © Rallis India Limited. All rights reserved. #Source-Print & Electronic media and Rallis Internal Marketing information system
Slide 24: Crop wise Rallis Performance – Q4
Crop wise Rallis Performance – Q4 Crops Performance of Imperative Enablers Fungicides, Vegetables Irrigation Acreages Pest Pressure Generics Irrigation Pest Pressure Potato (Canal Water) Acreages (Diseases) Fungicides *in UP, the infestation was very low; Decrease in pesticide consumption Pest Press
Slide 25: Quality of operations
Quality of operations Copyright © Rallis India Limited. All rights reserved.
Slide 26: Collection Strategy
Collection Strategy Steps taken • Focus approach on working capital management was the theme for the H2 • Q4 collections are generally subdued as Seeds companies collect advance from market Focus on collections made Rallis achieve a near zero debt status 26 Copyright © Rallis India Limited. All righ
Slide 27: Net Working Capital – Standalone
Net Working Capital –Standalone Rs Cr Working Capital Rs crs Actual Actual Variance 2014-15 2015-16 over PY I nv entories 277 258 Debtors 206 158 Total 483 416 -67.32 Creditors 205 191 -13.8 Net Working Capital 278 224 -53.52 Short term borrowings 43 2 -40.69 Reduction in inventories and debtors cou
Slide 28: Cash generated from Operations
Cash generated from Operations Cash generated from operations increases by 155 Crs (Increase from 64 Crs to 219 Crs) & 165 Crs consolidated Investment in subsidiary of 73 Crs through Internal accruals Copyright © Rallis India Limited. All rights reserved.
Slide 29: Rallis Customer Connect
RALLIS CUSTOMER CONNECT Copyright © Rallis India Limited. All rights reserved.
Slide 30: Customer Connect
Customer Connect PoP FGD SAMPARK Dr Vishwas Demos Mission Special Sparsh Campaigns Farmers Met Contact touch points ~ 11 lacs ~ 30 lacs Copyright © Rallis India Limited. All rights reserved.
Slide 31: Rallis – Continues to spend – Marketing Activities
Rallis – Continues to spend – Marketing Activities EK TEER DO NISHAN UNIQUE CAMPIGN ERGON CHILLI AND BLACK GRAM IN AP CAMPAIGN ERGON - INNOVATIVE APPROACH TO INCREASE TAQAT- FLOAT FARMERS ENGAGEMENT VAN CAMPAIGN AND AWARENESS Takumi Wall - Ergon Wall CO- Marketing visit to Painting painting Partners
Slide 32: New products are promising and well accepted by Farmers
New Products Launched 2015-16 • New era of pre- emergent herbicide in Soyabean for grassy weeds • In spite of tapping an entirely new segment of pre-emergence, it is well accepted by farmers • Smoothly launched in vegetable segment • Well accepted by farmers for control against sucking pest in veget
Slide 33: % of CP & NPP
% of CP & NPP 2013-14 2014-15 2015-16 31% 33% 31% NPP NPP NPP CP % NPP % CP % NPP % CP % NPP % Copyright © Rallis India Limited. All rights reserved.
Slide 34: Innovation Turnover Index
Innovation Turnover Index 11% 10% 2015-16 2014-15 Slight drop in insecticide segment curtailed desired growth Recent launches are well accepted but yet to achieve high volumes Megabrands get excluded from the list of ITI Copyright © Rallis India Limited. All rights reserved.
Slide 35: Metahelix
Metahelix Copyright © Rallis India Limited. All rights reserved.
Slide 36: Metahelix
Metahelix Increased stake to 100% (Rs 73 crs) 8% growth in revenues to Rs 334 crs despite degrowth in many crops Improved market share in paddy; leading position in millets; cotton and vegetables improve Better working capital management 36 Copyright © Rallis India Limited. All rights reserv
Slide 37: Dahej
DAHEJ Copyright © Rallis India Limited. All rights reserved.
Slide 38: Contract Manufacturing
Contract Manufacturing Made good progress in new CM opportunities Of the projects pursued made definitive progress in two having qualified now for piloting quantities During the current year we expect these to blossom into commercial quantities We will be manufacturing these in our Dahej fac
Slide 39: Key Wins For the Quarter & Year 2015-16
Key Wins For the Quarter & Year 2015-16 Copyright © Rallis India Limited. All rights reserved. 39
Slide 40: Rallis Commitment to Customers, Innovation
Rallis Commitment to Customers, Innovation “India’s most trusted brand Origin won award for product award, 2015” innovator – FICCI chemicals & petrochemicals awards 2015 India’s Most Trusted Brand Award is a recognition of excellence and appreciation of brands and a seal of approval of our products
Slide 41: Rallis Commitment to Excellence
Rallis Commitment to EXCELLENCE CII EXIM PRIZE FOR BUSINESS RALLIS WON THE SIGNIFICANT EXCELLENCE ACHIEVEMENT IN HR EXCELLENCE’’ Copyright © Rallis India Limited. All rights reserved. 41
Slide 42: ICSI Award
ICSI Award Rallis India Limited has received the Certificate of Recognition for adopting Exemplary Corporate Governance Practices 42 Copyright © Rallis India Limited. All rights reserved.
Slide 43: Project Sunshine, Dahej
PROJECT SUNSHINE, Dahej 43 Copyright © Rallis India Limited. All rights reserved.
Slide 44: Rallis Commitment to Sustainability & Safety
Rallis Commitment to SUSTAINABILITY & SAFETY 50 most influential RC logo: re-certification sustainability leaders for 3 years 44 Copyright © Rallis India Limited. All rights reserved.
Slide 45: Safety Award
Safety Award Rallis India Limited, Lote has won the third level Safety Award Suraksha Puraskar (Bronze trophy and Certificate) in Group B under the manufacturing sector category Lote and Akola units have been awarded with ‘Certificate of Merit’ from National Safety Council- Maharashtra Chapter for m
Slide 46: Outlook Kharif 2016
Outlook Kharif 2016 Copyright © Rallis India Limited. All rights reserved.
Slide 47: Monsoon 2016-17
Monsoon 2016-17 IMD Forecasts this year’s monsoon to be 106 % of LPA (Above Normal Rainfall) Skymet Forecasts this year’s monsoon to be 105 % of LPA (Above Normal Rainfall) IMD Skymet • 30 % chance of Excess • 20 % chance of Excess rainfall rainfall • 34 % chance of Above • 35 % chance of Above Norm
Slide 48: Copyright © Rallis India Limited. All rights reserved.
48 Copyright © Rallis India Limited. All rights reserved.