Insecticides India Ltd. Releases Q4 and Full Year FY2021 Results
25 June 2021 Insecticides India Ltd. has announced its financial results for the fiscal quarter and full year ending March 31, 2021.
Performance Highlights: FY2021 YoY
- Revenue from operations of Rs.1,420 Crore, growth of 4.2 %
- EBITDA of Rs. 152 Crore, decline of 2.3%
- EBITDA margin at 10.7% compared to 11.4%
- PAT of Rs. 93 Crore, growth of 8.6%
- PAT margin at 6.5% compared to 6.3%
- Strategic focus was on cash sales and better working capital management to generate strong cash flows
- Company continued deleveraging strategy and reduced its net debt by Rs. 92 Crore during the year
- Announced total dividend of Rs. 2 per share i.e. 20% on face value, in Q3FY21
Performance Highlights: Q4 FY2021 YoY
- Revenue from operations of Rs.256Crore, growth of 7.1%
- EBITDA of Rs. 29Crore, with margins of 11.2% compared to (1.0) %
- PAT of Rs. 22 Crore, with marginsof 8.5 % compared to (3.1) %
Commenting on the performance, Rajesh Agarwal, Managing Director, said: “In Q4 FY2021, IIL delivered a strong rebound in sales and profitability, both on sequential and year on year basis. The company recorded Revenue from Operations of Rs. 256 crores, with a resilient growth of 7.1% on Y-o-Y basis. Lethal group of products saw an impressive growth of 4-fold in sales, an indicator of high acceptance among farmers. EBITDA stood at Rs. 29 crores, with margins of 11.2%. Net profit for the quarter was Rs. 22 crores, with margins of 8.5%.
FY2021 was a challenging year, it started with the unprecedented outbreak of Covid-19 adversely impacting economy and people across the world. The domestic agrochemical sector was also affected as lockdowns curbed the operations to a certain extent. Industry faced challenges in terms of raw material and packaging material availability with on ground sales and logistics constraints also creating pressure on the businesses. However, India’s agriculture system demonstrated its resilience amidst such adversities and in a short span of time, its output performance began to improve.
On a full-year basis, FY21 Revenue from Operations was Rs. 1,420 crores, a growth of 4.2% on Y-o-Y basis, with EBITDA of Rs. 152 crores and Net Profit of Rs. 93 crores representing margins of 10.7% and 6.5%, respectively. Revenue growth was driven by institutional segment, a growth of 20% and contributed 26% to the total revenue, branded sales marginally declined by 0.4% and contributed 69%. Maharatna category continued to grow, posting 3.7% Y-o-Y increase, Lethal Granules, Pulsor, Hercules and Green Label were the major contributors. Net profit increased by 8.6% Y-o-Y with improvement in profitability margins.
During the year, the key strategic focus areas was on cash sales and better working capital management to generate strong cash flows. As a result, the Company generated cash from operations of Rs. 155 crores and the total debt was further reduced by Rs. 92 crores. In addition, total dividend of Rs. 2 per share i.e. 20% on face value, was announced.
We have launched seven new products in FY21 for improving product mix, which have received positive response from market and contributed Rs. 27.4 crores to net sales during the year. I am also pleased to announce that Lethal Granules and Tadaaki have started substituting Thimet sales during the year and have registered an annual sales of Rs. 56.5 crores and is expected to contribute good growth in the coming year.
In addition, we are targeting to launch Hachiman, a patented herbicide mixture with Nissan Japan which is a part of our plan to launch 5-6 new value-added products during the year. Management team is fully equipped and committed to drive growth as registration of new products, improving product mix and increasing brand business will help company to scale new heights.”
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