Agrochemicals maker Rallis India, part of Tata Group, today reported a decline of 19.66% in its standalone net profit to Rs 101.39 crore for the 2011-12 fiscal.
Rallis also announced it will acquire a majority stake in Zero Waste Agro Organics Pvt Ltd, a Maharashtra-based organic manure producer for Rs 29 crore.
The company had reported a net profit of Rs 126.21 crore in the 2010-11 financial year, it said in a Bombay Stock Exchange (BSE) filing.
The standalone net sales of the company rose by 10% to Rs 1,151.94 crore in the last fiscal from Rs 1,046.72 crore in the 2010-11 fiscal.
The company has also recommended a dividend of Rs 1.20 per share, taking the total dividend for the year to Rs 2.20 per share.
In a separate filing, Rallis said it "has approved entering into definitive agreements to acquire a majority equity stake of 51% in Zero Waste Agro Organics Pvt Ltd, a Maharashtra based organic manure and soil conditioners manufacturing Company."
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The acquisition is an all cash deal aggregating to Rs 29 crore, funded largely through internal accruals, it added.
Rallis India said its consolidated net revenues for the 2011-12 fiscal rose by 17% to reach a new high at Rs 1,245 crore.
It posted a consolidated net profit after tax of Rs 100 crore after an exceptional item of Rs 17 crore, it added.
In the international business, company's revenue rose to nearly Rs 400 crore reflecting 33% of sales, it said.
"I am pleased to inform that the company has crossed a new milestone in terms of achieving revenues of Rs 1,245 crore registering a healthy growth of 17%, though the year witnessed erratic rainfall and difficult agricultural conditions," Rallis Managing Director V Shankar said.
On the acquisition of Zero Waste Agro Organics, Shankar said in a statement that the company expects the revenue from the business to exceed Rs 100 crore cumulative over a 5 year period.
Rallis manufactures and markets pesticides, seeds, fertilisers, seed treatment chemicals among other products.
Shares of the company today declined by 1.83% to settle at Rs 128.55 a piece on the BSE.