The Waterbase Limited announces FY20 Results

The Waterbase Ltd. (TWL), pioneer in the Indian Aquaculture Industry with integrated offerings of hatcheries, shrimp feed and farmcare products supported by shrimp processing capacities has announced its financial results for the quarter and year ended March 31, 2020.

Financial Highlights - Q4 & FY20 (Standalone)

FY20

- Income from operations stood at Rs. 322 crore
- PBT of Rs. 24.9 crore
- PAT stood at Rs. 18.5 crore

Q4FY20

- Income from operations stood at Rs. 47 crore
- PBT of Rs. (3.4) crore
- PAT of Rs. (2.5) crore

Commenting on the results, Mr. Ramakanth V. Akula, CEO said, "FY20 was a mixed year where we were able to make significant progress in ancillary businesses of farmcare products and hatchery. Lower revenues and elevated raw material prices through most of the fiscal have led to compressed profitability.

To improve our receivables in FY 20, we implemented a stringent credit policy which impacted feed sales during the year. However, this initiative will aid in improving our liquidity and cash flow position in the coming years. The growth in farmcare products remained robust, the hatchery business has delivered a buoyant start and the good response from customers clearly indicates the need to scale up appropriately to achieve the strategic imperatives of enhancing yields and traceability.

We witnessed disruption in our core feed business due to the COVID-19 pandemic and its fallout in the month of March 2020. Following the outbreak of the COVID-19 pandemic, the subsequent lockdown and the restrictions placed on movement of people and material, both domestically and internationally, there have been unprecedented disruptions. The end use of shrimp is primarily for exports and the restrictions caused an immediate reaction throughout the value chain. Faced with falling realisations, farmers who had cultivated shrimp before the lockdown have moved swiftly to monetize the harvest thereby reducing demand for later stage feed. Others who were yet to begin shrimp farming have deferred their plans.

While the business environment is undoubtedly challenging, we believe our robust financial position with negligible net debt provides us a buffer for uncertainties ahead. With a wider distribution network and growing ancillary revenue streams, our business is better positioned than earlier and we look forward to the business returning to normalcy post taming the Virus."

Shares of WATERBASE LTD. was last trading in BSE at Rs.89.8 as compared to the previous close of Rs. 89.55. The total number of shares traded during the day was 17948 in over 502 trades.

The stock hit an intraday high of Rs. 91.15 and intraday low of 89. The net turnover during the day was Rs. 1616093.

Source : Equity Bulls

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