Delhi, India,November13, 2019: Insecticides India Limited (referred to as “IIL” or the “Company”), one of the premier agrochemical companies in India, today announced its financial results for the fiscal quarter and half year ending Sept30, 2019.
Commenting on the performance, Mr.Rajesh Aggarwal, Managing Director, said:
“The domestic economy in Q2 FY2020 continues to face headwinds which were present at the beginning of fiscal year. Due to broad based slowdown in rural demand, the impact of slowdown was visible in agrochemicals sector as well. Monsoon during the last quarter was scattered, with heavy rainfalls in some parts of the country impacting agriculture cycle. Sales growth was mixed as there was a 20-day delay in the season as a result of prolonged crop cycle and was adversely impacted due to continuous rainfall and lower pest infestation. Despite the challenging business environment, Insecticides India delivered growth in revenues and profitability owing to our strong product portfolio and greater market acceptability of products among farmers.
I am pleased to report that the Company recorded revenue from operations of Rs. 503 crores in Q2 FY2020, representing a growth of 9.8% on a Y-o-Y basis. The Company delivered EBITDA of Rs. 72 crores in Q2 FY2020, an increase of 4.1% with margins of 14.3%. Net profit for the quarter was Rs. 49 crores, an increase of 13.6% with margins of 9.7%.
Our focus on R&D initiatives have resulted in the launch of five new products during the H1 FY2020. However, three of our key new products which were expected during the period got delayed due to pending regulatory approvals and is expected to be launched in the coming period. We now have 12 products approved under 9(3) category. Our new product launches have high acceptability in the market due to our strong value proposition, widely spread distribution network and farmer centric approach.
As the sowing period extended to October combined with benefits of PM Kisan scheme, it is expected demand picks up for Rabi crop in coming period. Our objective to improve product mix through new innovative product launches and ongoing geographic expansion for both domestic and exports market will help us in achieving our full year targets and implement IIL strategic plan which will generate value for all our stakeholders.”
Insecticides India operating revenue increased to Rs. 861 Crores from Rs. 777 Crores in H1 FY2019, a growth of 10.8% on Y-o-Y basis. EBITDA increased by 8.3% to Rs. 135 Crores from Rs. 125 Crores as compared to same period last year. PAT increased by 10.1% to Rs. 85 Crores from Rs. 77 Crores in H1 FY2019.
EBITDA margins declined marginally to 15.7%as compared to 16.1% last year, a decrease of 35 basis points. Flat margins Insecticides India resilient performance despite challenging business environment.
Exports for the six-month period have increased to Rs.22 Crores from Rs.16 Crores, representing a growth of 39% on Y-o-Y basis and company expects to achieve its export targets for the full year.
In the current fiscal year, company have launched five new products. However, our three key products which were expected during the period were delayed due to regulatory concerns.We have a total of 12 products approved under 9(3) category.
Maharatna category products registered a growth of 5.8% y-o-yand the overall topline growth is further supported by other branded products which registered a strong growth of 7.5% offsetting marginal lower sales from select Maharatna products.
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About Insecticides India:
Insecticides (India) Ltd. (IIL), is a BSE and NSE listed, India’s leading and one of the fast growing Agrochemicals manufacturing company. IIL has emerged as a front-line performer in India’s crop care market and is all set to grow impressively.
IIL owns the prestigious Tractor Brand which is highly popular among the farmers. This umbrella brand of its agro products signifies the company’s deep connection with the farming community.
IIL has state-of-the-art formulation facilities in Chopanki (Rajasthan), Samba & Udhampur(Jammu & Kashmir) and Dahej (Gujarat). IIL also has technical synthesis plants at Chopankiand Dahej to manufacture technical grade chemicals also providing competitive edge by backward integration.
IIL foundation is an initiative by IIL which works closely with Indian farmers to impart them knowledge regarding modern agricultural practices and techniques.
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Sandeep Aggarwal Chief Financial Officer Insecticides India Ltd. +91 11 2767 9700
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Ravi Gothwal / Vikas Luhach Churchgate Partners
+91 22 6169 5988 InsecticidesIndia@churchgatepartners.com |
Safe Harbour:
This release contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Insecticides India’s future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Insecticides India undertakes no obligation to publicly revise any forward-looking statements to reflect future / likely events or circumstances.
