Agrochemicals Company NACL Industries announced Q1FY23 results:
- Total income for the Quarter ended June 30, 2022 is Rs 479.51 Cr, registering a YoY growth of 46%.
- Earnings before Interest, Depreciation and Tax (EBIDT) and Profit after Tax (PAT) for the quarter stood at Rs 36.34 Cr and Rs 15.13 Cr respectively compared to Rs 31.54 Cr and Rs 14.31 Cr in the corresponding period of the previous year.
- Exports grew significantly in Q1, with more than 100% growth over the previous corresponding quarter. Relentless focus on productivity, quality and meeting delivery schedules, despite global supply chain disruptions, have helped keep the order book healthy. The outlook for FY'23 looks promising, with a good forecast for Active Ingredients (Al) and improved Formulations and Trading business.
- Domestic retail business witnessed a growth of 16% over the corresponding quarter of last year, despite the rainfall deficit and delayed monsoons prevalent across many parts of the country. This was possible through an aggressive placement strategy of our key brands.
- There was an overall growth of 22% over the previous quarter in our domestic Institutional business facilitated by a growth in volume and higher price realization.
- The Srikakulam plan has achieved a 13% increase in production over the corresponding previous quarter. Approvals for capacity expansion are already in place and projects are progressing as planned. They are expected to be commissioned from Q2 onwards.
- R&D Function is working not only on various Als and Formulations for overseas and Indian Customers, but also on process improvement projects focussed on cost and effluent reduction.
- The Greenfield project at Dahej, Gujrat is on the verge of commissioning, and is scheduled to start production soon.
- Mr.Pavan Kumar has been reappointed as the Managing Director & Chief Executive Officer (MD&CEO) of the Company for a further period of three (3) years with effect from June 01, 2022, subject to shareholders approval.
- Mr. Chantati Varada Rajulu has been appointed as an Additional Director as well as Whole-time Director, Designated as Executive Director - Corporate affairs of the Company, for a period of 1 (one) year with effect from June 24, 2022, subject to shareholder approval.
Comments from Mr. Pavan Kumar, MD & CEO ,"The results of Q1 were driven by a strong performance across all business streams, spearheaded by exports, branded formulations retail and institutional sales. There was a significant improvement in the company's manufacturing operations. The Company faced sizable and unanticipated challenges posed by input and energy availability and costs. Notwithstanding such challenges, NACL remains dedicated to delivering on its commitments to farming and institutional channels and customers. The company continues to invest in development and manufacturing in the pursuit of growth opportunities. The outlook for Q2 is positive, with demand led growth in all business segments."