Rallis India, a subsidiary of Tata Chemicals, has recorded 53 per cent increase in net profit at Rs 23 crore (Rs 15 crore) in the first quarter of this fiscal, largely due to higher production and improved contribution from the recently acquired Metahelix Life Science. Income rose 45 per cent to Rs 298 crore (Rs 203 crore).

Mr V. Shankar, Managing Director, Rallis India, said the company has commissioned the Dahej project during the end of this quarter.

The progress of monsoon has been satisfactory, but was not evenly distributed particularly in Gujarat, Maharashtra, Andhra Pradesh and some north-eastern States. This could pose a major challenge in surpassing the last year overall kharif output, which was extremely good, said Mr Shankar.

Dahej facility

The multi-purpose technical manufacturing facility at Dahej will contribute heavily to export market as it is located at the Special Economic Zone. The company has contract manufacturing alliances with several multinational agriculture chemical companies.

The company has managed to overcome the seasonality impact on the company's financial performance with the acquisition of Metahelix which is into seed business.

“Traditionally, only the second and third quarters of the financial year are considered as a busy season for the company as farmers spend on crop protection products only then. But with Metahelix buyout we had received substantial revenue from seed sales in the first quarter,” said Mr Shankar.

Rallis India has now made its presence across the value chain right from seeds, to crop protection to selling branded agriculture products through iShakti. The company has launched six new products, three each in herbicides and crop protection.

The company's shares on BSE were down 0.75 per cent at Rs 145 on Thursday.

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