Agrochemical manufacturer Rallis India has reported a marginal decline in net profit at Rs 58.52 crore for the quarter ended September 30, 2011. The Tata Group company had reported a profit after tax (PAT) of Rs 58.58 crore in the year-ago period.

Despite rise in sale, higher interest cost incurred on investment made to acquire seeds research company Metahelix and setting up a new plant at Dahej, hurt profits in the second quarter, said V Shankar, managing director and chief executive officer. The company had acquired a majority stake in Bangalore-based Metahelix Lifesciences for Rs 99.5 crore in December 2010.

Fluctuating rains in June-September period also lead to poor sales of some of the company's products like Herbicides during the quarter, he said in an interaction with reporters.

Rallis India's EBITDA for the three month period rose 10% YoY to Rs 98 crore.

During the quarter, the company incurred an interest expense of Rs 3.91 crore versus a gain of Rs 6 lakh in the year ago quarter.

Rallis India's total expenses in the second quarter were also higher at Rs 349.3 crore versus Rs 283.8 crore in the year ago quarter.

Shankar said, Dahej plant is fully operational and it should reach full capacity by December or January. The company is eyeing global customers for contract manufacturing at the Dahej plant.