Rallis India Limited · NSE:RALLIS
Rallis India — Q4 FY15 Earnings Presentation
37 slides from Rallis India's earnings presentation, Apr 27, 2015
Slide 1: Welcome! Q4 & FY15 Performance
Welcome! Q4 & FY15 Performance V Shankar 27th April 2015 1 Copyright © Rallis India Limited. All rights reserved.
Slide 2: Performance Highlights: Q4 and 12 Months (consolidated)
Performance Highlights: Q4 and 12 Months (consolidated) Q4 - PAT rises 10% to Rs. 21 Cr. Q4 - EBITDA margin at 14.1% recorded an improvement of 120bps over the previous year’s EBITDA. 12 Months – Gross sales crossed a new high of Rs. 1900 Cr. 12 Months – PAT rises to Rs. 157 Cr. 12 Months
Slide 3: Financial Highlights Q4
Financial Highlights Q4 3 Copyright © Rallis India Limited. All rights reserved.
Slide 4: Financial Performance: Key Highlights Rallis Consolidated
Financial Performance : Key Highlights Rallis Consolidated Rs Crs Q4 Q4 13-14 14-15 Net Sales 323.8 314.9 Profit before tax (bei) 27.5 29.6 Net Profit After Tax (Before MI) 18.1 21.3 11% Net Profit After Tax (After MI) 19.3 21.4 EBITDA % 12.9% 14.1% 4 Copyright © Rallis India Limited. All rights res
Slide 5: Financial Performance: Key Highlights Rallis Standalone
Financial Performance : Key Highlights Rallis Standalone Rs Crs Q4 Q4 13-14 14-15 Net Sales 303.6 280.7 Profit before tax (bei) 35.5 30.6 Net Profit After Tax 25.1 23.7 5 Copyright © Rallis India Limited. All rights reserved.
Slide 6: Financial Highlights 12 Months 2014-15
Financial Highlights 12 Months 2014-15 6 Copyright © Rallis India Limited. All rights reserved.
Slide 7: Financial Performance: Key Highlights Rallis Consolidated
Financial Performance : Key Highlights Rallis Consolidated Rs Crs Actual Actual 13-14 14-15 Net Sales 1725.7 1800.8 4% Profit before tax (bei) 214.4 221.6 Net Profit After Tax (before MI) 152.7 159.8 Net Profit After Tax (after MI) 151.9 157.2 4% EBITDA % 15.1% 15.4% 7 Copyright © Rallis India Limit
Slide 8: Financial Performance: Key Highlights Rallis Standalone
Financial Performance : Key Highlights Rallis Standalone Rs Crs Actual Actual 13-14 14-15 Net Sales 1510.2 1498.1 Profit before tax (bei) 209.0 205.7 Net Profit After Tax 146.4 145.4 PBT - CY includes one time charge of Rs.5.40 crs on account of stock adjustments and Rs.1.71 crs on account of Dahej
Slide 9: Metahelix financials
Metahelix financials Crs 2013-14 2014-15 Net Sales 224.5 309.3 EBIDTA 17.4 24.5 Net Profit after Tax 9.2 16.5 Key wins Growth of 38% in revenues ; profits up 80% Counted amongst industry leaders now in rice, millet and corn MC 13 Hybrid Paddy; MH 2100 Maize for Rabi; MH 7796 Maize for Rainy se
Slide 10: Business Scenario
Business Scenario 10 Copyright © Rallis India Limited. All rights reserved.
Slide 11: Agriculture Scenario & Rallis Performance: Q4
Agriculture Scenario & Rallis Performance: Q4 11 Copyright © Rallis India Limited. All rights reserved.
Slide 12: Q4: ended on a depressed note for farmers
Q4 : ended on a depressed note for farmers Shortfall of SW Monsoon NE Monsoon (33%) Agrochemical Crop Condition • Lower crop • Expected good Usage • Impacted produce Acreages Rabi • Low disease Production • Moderate due to quality & Standing • Paddy , Pulses, • Better returns low disease and crop •
Slide 13: Q4 Pest & Disease Situation
Low Medium Severe Q4 Pest & Disease Situation Impact on Intensity of Pest & Disease incidence Industry RABI PADDY Weeds BPH Blast in Paddy BENGAL GRAM Spodoptera Heliothis Wilt WHEAT Aphids Leaf Blight Wheat Rust CUMIN Leaf Blight Wilt Thrips 13 Copyright © Rallis India Limited. All rights reserved.
Slide 14: Hailstorm & Unseasonal Rains in Q4
Hailstorm & Unseasonal Rains in Q4 14 Copyright © Rallis India Limited. All rights reserved.
Slide 15: Untimely Rains & Hailstorms: Impacted Crop produce
Untimely Rains & Hailstorms : Impacted Crop produce Area & Crops affected due to Unseasonal Rains & Hailstorm Rajasthan Uttar Pradesh Haryana MP Maharashtra Punjab (45.5 Lakh) 50% (26.8 Lakh) 21% (18.8 Lakh) 59% (5.7 Lakh) 5% (4 lakh) 7% (3 Lakh) 9% Wheat Wheat Wheat Wheat Onion Wheat 17 Lakh 21.2 L
Slide 16: International Business Q4
International Business Q4 Prolonged winter had a negative impact on cereal crops sowing and pest Higher price of Carbendazim in Vietnam incidence in EUROPE for rice is propelling growth Favorable weather condition led to higher pest pressure in Paddy Wet weather delayed main planting of cereals Unpr
Slide 17: 2014-15: how the year was for agriculture
2014-15: how the year was for agriculture 17 Copyright © Rallis India Limited. All rights reserved.
Slide 18: Rainfall comparison for the year 2013 & 2014
Rainfall comparison for the year 2013 & 2014 KHARIF 2013 KHARIF 2014 Year/Season Deviation KHARIF 2013 + 6% KHARIF 2014 -12% Year/Season Deviation Post Monsoon + 18% 2013 Post Monsoon - 33% 2014 18 Copyright ©Post RallisMonsoon 2013 India Limited. All rights reserved. Post Monsoon 2014
Slide 19: Agriculture 2014-15: Tough year for Farmers & Industry
Agriculture 2014-15: Tough year for Farmers & Industry Paddy Cotton Paddy Wheat Rabi Kharif Crop -2% -2% Crop -11% -- Crop Productio Soyabean Pulses Productio Pulses Productio n n n -2% -8% -6% Rabi & Summer crop damaged Kharif Sowing Delayed due due to untimely rains Crop to delayed Monsoon and hai
Slide 20: Agricultural timeline: 2014-15
Agricultural timeline : 2014-15 Unseasonal Rains Brazil Drought Production impacted : Soyabean (25%), Corn (26%) Sowing of the Crop delayed, impacted international sales Urea Shortage leading to severe cash crunch in the market Variation in commodity Prices from July to March : Paddy (8%), Soyabean
Slide 21: Key Commodity Prices: Lower than farmers' expectation
Key Commodity Prices: Lower than farmers’ expectation • Paddy, Soyabean & Cotton prices lower than previous year – Impacted farmer earnings • Groundnut and Maize prices showed an upward trend due to less production than anticipated 2200 4100 Paddy Soyabean 6500 2000 3900 Cotton 6000 3700 1800 3500 5
Slide 22: Global Market 2014
Global Market 2014 Crop Protection Non Crop Total Agrochemicals Year Agrochemicals ($m) Agrochemicals ($m) ($m) 2009 40147 5860 46007 2010 41291 5880 47171 2011 46539 6290 52829 2012 49549 6372 55921 2013 9.4% 54208 6481 60689 2014 56145 3.3% 6557 62702 Growth in Global Agrochem Market was muted com
Slide 23: Leveraging RKK Connect
Leveraging RKK Connect Convince • RKK Farmers Capture • 1 Million • CA Skill Training • SAMPARK Contacts Building • WOM • SoW & other • PoP demos IT Contact Cascade Helped in the scale up of New launches such as Origin and Hunk 23 Copyright © Rallis India Limited. All rights reserved.
Slide 24: New Products Launched in 2014-15, set for growth
New Products Launched in 2014-15, set for growth Duton Blend Herbicide Fungicde for control of Downy 1st time ever – launch of patented Mildew molecule with the inventor Technical : Dimethomorph + Solution for – Post emergent Herbicide Ametoctradin for Paddy crop Hunk Sonic Flo Insectici
Slide 25: Key Wins
Key Wins 25 Copyright © Rallis India Limited. All rights reserved.
Slide 26: EHS & Sustainability: Recognitions Q1
EHS & Sustainability: Recognitions Q1 Environment Health & Safety CSR Dahej Administration Building Volunteering Got Gold Rating from IGBC Award 1 : Highest Registration on TATA Engage Award 2 : Highest Contribution to experience Hub 26 Copyright © Rallis India Limited. All rights reserved.
Slide 27: EHS & Sustainability: Recognitions Q2
EHS & Sustainability: Recognitions Q2 Environment Health & Safety CSR 1. National safety Award for Rallis’ “Jal Dhan” entry has Dahej unit emerged as the Winner in the 2. NSC certificate of Merit for ‘Community Impact’ category of Lote unit the Tata Sustainability Month 3. NSC certificate of Merit f
Slide 28: EHS & Sustainability: Recognitions Q3
EHS & Sustainability: Recognitions Q3 Environment Health & Safety National Safety Council (NSC) awarded Rallis Ankleshwar unit with “Certificate of Appreciation” 28 Copyright © Rallis India Limited. All rights reserved.
Slide 29: EHS & Sustainability: Recognitions Q4
EHS & Sustainability: Recognitions Q4 Environment Health & Safety CSR 1. Behavior Safety Volunteering Our BBS practice is rated as one of the Best Two awards in TVW II practice in TATA Group Maximum fresh registration in TVW-II Maximum sharing of experiences during TVW-II 2. National Safety Coun
Slide 30: Asataf sales cross Rs.100 Cr; IBD milestone
Sale of Asataf crosses Rs.100 Cr. for 3rd IBD- Achieved Milestone of 500Cr. consecutive year. revenue Signed MOU for MoPu with Madhya First dispatch of new CM Product from Pradesh Govt. Dahej Copyright © Rallis India Limited. All rights reserved. 30
Slide 31: Progress on Strategic Investments & Initiatives
Progress on Strategic Investments & Initiatives Cumulative 1.5 Million Revenue of Farmer Base `500 Cr in 5 yrs Cumulative Cumulative Revenue of 1 Million farmers `100 Cr in 5 yrs to be benefitted Cumulative Enhance farm productivity through Revenue of advanced `1000 Cr in 5 yrs Agricultural Practice
Slide 32: Looking Ahead
Looking Ahead 32 Copyright © Rallis India Limited. All rights reserved.
Slide 33: Way Forward
Way Forward Rising population exerts pressure on Trend 1: High Focus on Productivity food production To meet the rising demand for food and dietary protein global Decreasing per capita arable land food production will need to double by 2030 will lead to search for new areas Trend 2: : Sustainability
Slide 34: Indicative scenario
Indicative scenario Weather related losses during Rabi Harvest El Niño? Monsoon - Varied Predictions Commodity Prices – Still to catch up farmers’ expectations 34 Copyright © Rallis India Limited. All rights reserved.
Slide 35: the Rallis factors
the Rallis factors • Farmer relationship : RKK / Branding / ICT initiatives • Suite of solutions : new offering • NPP Growth platforms : Seeds, PGN, CM, GeoGreen,… • Quality of operations : EBIDTA margin, Cash • Sustainability : EHS & CSR • Teamwork : People Engagement 35 Copyright © Rallis India Li
Slide 36: Rallis – Pillars of growth
Rallis – Pillars of growth 36 Copyright © Rallis India Limited. All rights reserved.
Slide 37: Copyright © Rallis India Limited. All rights reserved.
37 Copyright © Rallis India Limited. All rights reserved.