Conference Call with India Pesticides Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Agrochemicals company India Pesticides announced Q1FY24 results: Total income was Rs 2,047 million Adjusted EBITDA of Rs 431 million; EBITDA margin of 21.1% Reported EBITDA of Rs 260 million; EBITDA margin of 12.7% Adjusted net profit of Rs 325 million; PAT Margin of 15.9% Reported net profit of Rs 155 million; PAT Margin of 7.5% Technicals + APIs constitute 79% of Total Revenue Commenting on the performance, Anand S Agarwal, Chairman, said, “In Q1FY24, the company faced a highly volatile global business environment, characterized by numerous challenges such as unfavourable macroeconomic scenarios, subdued volumes, high-cost inventories and steep price drops due to oversupply of raw material from China. Consequently, our topline and profitability were impacted, with revenues amounting to Rs 2,047 million in Q1FY24 compared to Rs 2,217 million in Q1FY23. Despite these challenges, we remained steadfast in our efforts to navigate through these turbulent times and strategize for a more resilient performance in the coming quarters. During the quarter, the Company saw additional pressures due to a reduction in the selling prices of some of its products, leading to an impact of Rs 171 million. This impact comprised Rs 73 million owing to sales made during the current quarter and Rs 98 million due to the revaluation of inventories at hand at Net Realizable Value (NRV). I am happy to announce that during the quarter we have increased our technical capacity by 200 MT which takes our total technical capacity to 24,200 MT. We are focused on introducing new products and expansion of the Hamirpur plant project. Our recently launched products continue to receive positive responses from the market and make a significant contribution to the top line. This momentum has encouraged us to further enhance our offerings and explore avenues for growth and expansion. Our robust sense of accountability, coupled with an extensive reach to millions of farmers, an expansive distribution network, and a firm market presence, propel us toward achieving our objectives. It also helps augment stakeholder value and forge a path toward a sustainable future. We will continue to push the boundaries by harnessing the strength of our diverse product portfolio, positioning ourselves as a leading and competitive organisation in our industry.” Result PDF
Conference Call with India Pesticides Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.
India Pesticides announced Q3FY23 results: Consolidated Q3FY23: Revenue growth of 16.1% to Rs 2,222 million. EBITDA of Rs 511 million; EBITDA margin of 23.0%. Net profit at Rs 348 million; PAT Margin of 15.7%. Technicals + APIs constitute 84% of total revenue. Consolidated 9MFY23: Revenue growth of 27.2% to Rs 6,970 million. EBITDA of Rs 1,650 million; EBITDA margin of 23.7%. Net profit at Rs 1,131 million; PAT margin of 16.2% Technicals + APIs constitute 79% of total revenue. Commenting on the performance, Anand S Agarwal, Chairman, said: “Despite the inflationary pressure, our margins saw an improvement on QoQ basis due to improved operational efficiencies and cost pass-through. The company performed well with a 16.1% YoY revenue growth, driven by higher demand for existing products and new launches. Our margins remained under pressure (YoY) due to various global macroeconomic challenges, including rising raw material prices and high fuel prices affecting the industry. All our recently launched products were well received by the market, and we expect their demand to grow going forward. Further to this we have planned 70 crore capex for expansion at Sandila Plant in FY23. We're happy to announce that the Ministry of Environment and Forests (MoEF) has granted us Environmental Clearance (EC) for our Hamirpur project. We anticipate starting operations during FY24. Our exports increased to 68% in Q3FY23 from 49% in Q2FY23. The increase has been driven by the company's focus on expanding its global reach and building strong relationships with international customers. During the quarter our long-term credit facilities were reconfirmed at A+ by CARE Ratings ltd, which highlights our ability to manage capital efficiently. IPL continues to overcome challenges and emerge stronger despite uncertainty in the business environment. We're eager to roll out new products in the coming quarters to improve product mix and reach consumers. We assure our shareholders that we are committed to working towards our vision of supporting chemical business and farmers across the globe by producing superior value chemicals through quality and efficiency. India is now a relatively stable economic haven with strong domestic demand and growing competitiveness in exporting quality goods and services. IPL is poised for success with its skilled manufacturing and competitive edge." Result PDF
Agrochemicals company India Pesticides announced Q2FY23 results: Q2FY23: Revenue growth of 38.8% to Rs 2,530 million EBITDA of Rs 549 million; EBITDA margin of 21.7% Net Profit Rs 372 million; Pat margin of 14.7% Technicals + APIs constitute 73% of total revenue H1FY23: Revenue growth of 33.2% to Rs 4,747 million EBITDA of Rs 1,139 million; EBITDA margin of 24.0% Net Profit Rs 783 million; PAT Margin of 16.50% Technicals + APIs constitute 75% of total revenue Commenting on the performance, Mr. Anand S. Agarwal, Chairman: “During the quarter our revenue grew by 38.8% supported by increased demand of existing products and new product launches. Our margins were impacted by various macroeconomic factors across the globe. Industry faced challenges in terms of raw material prices with logistics constraints also creating pressure on the businesses. However, the Indian economy demonstrated its resilience amidst such adversities and continued its performance. All our recently launched products are performing well, and we expect their demand to grow going forward. Further to this we have planned 70 Cr capex for expansion at Sandila Plant in FY23. 4,000 MT capacity at our Sandila plant will be additionally added under phases over the coming quarters. One herbicides and one intermediate will be added. As of update on our Hamirpur project EIA report was accepted by MOEF and meeting with EAC is underway. During the quarter our long-term credit facilities were rated A+ by CARE Ratings ltd, which highlights our ability to manage capital efficiently. Management team is fully equipped and committed to drive growth with registration of new products, improving product mix and increasing brand business which will help company to scale new heights. We are consistently working towards our vision of supporting chemical business and farmers across world by producing superior value chemicals by integrating quality and efficiency,” Result PDF
Conference Call with India Pesticides (IPL) Management and Analysts on Q1FY23 Performance and Outlook. Listen to the full earnings transcript.