India Pesticides Results: Latest Quarterly Results & Analysis

Agrochemicals company India Pesticides announced FY24 results:

• Total Income was Rs 696 crore
• EBITDA of Rs 102 crore with EBITDA margin of 14.6%
• Net Profit of Rs 60 crore with PAT margin of 8.7%

Commenting on the performance, Anand S. Agarwal, Director, Founder & Promoter said, “FY24 has been a challenging year for our industry, marked by significant headwinds from international markets due to decreased demand and high channel inventory. Additionally, the conflict in the Red Sea region has led to a significant surge in freight expenses and transit time, exerting pressure on both revenue and profitability.

We remain committed to navigating these challenges with a focus on long-term growth and sustainability.

We are pleased to announce the successful commissioning of production from the first block of our subsidiary, a key milestone achieved this quarter. All our capex plans are progressing as planned, and we continue to strategically enhance our R&D capabilities, positioning us for potential yield improvements in the coming years. Additionally, we are realigning our existing plants for better capacity utilization.

During the year, we have implemented strategic changes in our leadership team to better align with our long-term goals and drive future growth.

We are moving ahead with clear vision of growth and are committed to fortifying our leadership in the domestic market, perpetually innovating, and extending our impact on a global scale. Our objectives for FY25 are firmly established, and with your continued support, we advance with unwavering confidence.”

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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.”

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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."

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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

Agrochemicals firm India Pesticides announced Q1FY23 Result :

• Q1 FY23 Revenue Growth of 27.4% YoY
• Pretilachlor Technical 2,000 TPA capacity launched in Q1 FY23
• Revenue Growth of 27.4% to Rs. 2,217 mn
• EBITDA of Rs. 590 mn; EBITDA Margin of 26.6%
• Net Profit Rs. 411 mn; Pat Margin of 18.5%
• Technicals APIs constitute 78% of total revenue

Commenting on the performance, Mr. Anand S. Agarwal, Chairman: “During the quarter our revenue grew by 27.4% supported by increased demand of existing products and new product launches. The ongoing global uncertainties had an impact on raw material prices during the quarter and increased energy cost resulted in margin decline. We launched first phase of our backward integration for Pretilachlor Technical of 2,000 TPA during Q1 FY23. This will be manufactured in our existing facility at Sandila Plant, which will further safeguard us from any supply chain challenge of the intermediate which is largely imported. We are planning to expand it further in the current fiscal year. The primary application for the chemical is as herbicide for rice plantation. We anticipate a good market potential for this product. The manufacturing process was developed indigenously by our R&D and project engineering teams. This brings our total Technical manufacturing capacity at Sandila to 21,400 TPA. We are also progressing positively towards Hamirpur Facility where EIA report is under completion and is expected to be submitted by August end.

Looking forward we will continue our journey towards building long-term relationships with all stakeholders by delivering as per everyone's expectations. 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

India Pesticides declares Q4FY22 result:

• FY22 Revenue Growth of 11.3% 
• EBITDA Growth of 19.8%; Margins of 31.1%
• FY22 Net Profit Growth of 17.5%; Margins of 21.7%
• Robust growth momentum across product category
• Revenue Growth of 11.3% to Rs. 7,293 mn
• EBITDA growth of 19.8% to Rs. 2,270 mn; Margins expanded by 221 bps to 31.1%
• Net Profit Rs. 1,580 mn compared to Rs. 1,345 mn in FY21; Margins of 21.7%, up 114 bps
• Debt reduced by 49% to Rs.155 mn; Net Cash improved to Rs. 1,085 mn
• Total debt to equity improved from 0.08x to 0.02x
• Technicals APIs constitute 76% of total revenue during FY22
• Revenue growth of 34.3 % to Rs. 1,815 mn
• EBITDA growth of 22.3% to Rs. 467 mn
• Net Profit growth of 14.7% to Rs. 307 mn

Commenting on the performance, Mr. Anand S. Agarwal, Chairman: “During the quarter our revenue grew by 34.3% supported by increased demand of new product launches. We are a R&D driven firm and constantly try to develop and innovate by targeting high demand niche molecules in the International and domestic market and efficiently producing and marketing them across the globe.

During the quarter we soft launched 1 new herbicide technical which have the revenue potential of Rs 50 crores. Presently we have two upcoming products in pipeline out of which last product will be launched by Q3 of FY23. During the quarter we further increased our Sandila plant capacity by 500 MT for our existing Fungicide technical and plan to further increase it by 1,500 MT by end of next quarter. Our progress of the ongoing expansion projects is as per timelines and our expectations.

FY22 have been a year where company took significant leap towards future by becoming public and is inclined towards meeting all expectations of its shareholders. 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

Agrochemicals company India Pesticides declares Q3FY22 result:

• 9M FY22 EBITDA Growth of 19.1%; Margins of 32.9%
• 9M FY22 Net Profit Growth of 18.1%; Margins of 23.2%
• Robust profitability growth supported by unique product offerings
• Revenue Growth of 5.3% to Rs. 5,478 mn
• EBITDA growth of 19.1% to Rs. 1,802 mn; Margins expanded by 381 bps to 32.9%
• Net Profit Rs. 1,273 mn compared to Rs. 1,078 mn in 9M FY21; Margins of 23.2%, up 252 bps
• Technicals APIs constitute 72% of total revenue during 9M FY22
• Revenue of Rs. 1,914 mn; Gross Margins Improved by 772bps to 56.0% YoY
• EBITDA of Rs. 626 mn; Margins expanded by 611bps to 32.7% YoY
• Net Profit Rs. 432 mn; Margins improved by 327bps to 22.6% YoY

Commenting on the performance, Mr. Anand S. Agarwal, Chairman: “During the quarter our profitability growth momentum continued backed by our efficient business operations and unique product offerings. During the quarter we launched one product which received overwhelming response. As well as for the other product launched in the first half of the fiscal year continued to grow. Our R&D team and customer acquisition team is working to identify future pipeline of product offerings which can further add significant value to our offerings.

Presently we have five upcoming products in pipeline and about to be launched by Q2FY 22-23. During the quarter we further increased our Sandila plant capacity by 500MT. Our progress of the ongoing expansion projects is as per timelines and our expectations. We are confident that our enhanced capacity coupled with new product launches will continue to drive profitable growth for us in the near to medium term.”

Result PDF

Financial Highlights

• H1 FY22 EBITDA Growth of 14.7%; Margins of 33.0%
• H1 FY22 Net Profit Growth of 16.1%; Margins of 23.6%
• Distinct product offerings driving consistent sustainable margins
• Revenue Growth of 5.7% to Rs. 3,564 mn
• EBITDA growth of 14.7% to Rs. 1,178 mn; Margins expanded by 258 bps to 33.0%
• Net Profit Rs. 841 mn compared to Rs. 725 mn in H1 FY21; Margins of 23.6%, up 212 bps
• Cash Flow from Operations of Rs. 650 mn
• Net cash of Rs. 1,472 mn compared to Rs. 229 mn in full year FY21
• Revenue of Rs. 1,823 mn; Gross Margins Improved by 158bps to 55.2% YoY
• EBITDA of Rs. 587 mn; Margins expanded by 124bps to 32.2% YoY
• Net Profit Rs. 421 mn; Margins improved by 124bps to 23.1% YoY

Commenting on the performance, Mr. Anand S. Agarwal, Chairman: “During the quarter our margins continued to remain strong on back of our niche product offerings. We continued acquiring new customers across the globe supported by our strategy of continuously working towards expanding product portfolio on an ongoing basis to ensure significant business growth.

We remain focused on consistently developing and testing new chemicals and developing manufacturing processes in-line with those chemical to deliver products efficiently, with maximum safety of our workers and environment. During the first half of this fiscal, two new technical grade pesticides was introduced. The initial response has been encouraging and expect it to gain further momentum going forward. We are also on track to launch 6 new products across categories which is expected to contribute meaningfully from next fiscal year.

We also remain committed to our capex plans to enhance our production capabilities. The progress of the ongoing expansion projects is in-line with our expectations. We are confident that our enhanced capacity coupled with new product launches with drive profitable growth for us in the near to medium term. ”

Result PDF