India Pesticides Ltd Q2 FY23 Revenue grows 38.8% Y-O-Y

India Pesticides Limited (BSE: 543311; NSE: IPL), One of the fastest growing agro-chemical companies in terms of volume of technical manufacturing ("IPL" or the "Company"), announces its results for quarter and period ending September 30th, 2022.

Consolidated Q2 FY23 Financial Highlights

- Revenue Growth of 38.8% to Rs. 2,530 mn
- EBITDA of Rs. 549 mn; EBITDA Margin of 21.7%
- Net Profit Rs. 372 mn; Pat Margin of 14.7%
- Technicals + APIs constitute 73% of total revenue

Consolidated H1 FY23 Financial Highlights

- Revenue Growth of 33.2% to Rs. 4,747 mn
- EBITDA of Rs. 1,139 mn; EBITDA Margin of 24.0%
- Net Profit Rs. 783 mn; 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 macro-economic factors across the globe. Industry faced challenges in terms of raw material prices with logistics constraints also creating pressure on the businesses. However, 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,"

Strategic Plans

- Present installed capacity of Technicals increased to 23,500 MT from 21,500 MT as on 31.03.2022 after launch of 2,000 MT capacity during Q1 FY23

- Capex outflow of Rs. 70 crores have been planned for FY23

- Targeting further increase of Sandila plant capacity by 4,000 MT

- 2 more manufacturing blocks at the existing Sandila facility are proposed to be used for herbicide Technicals & intermediates

- Hamirpur Plant to likely commence operations in FY23-24

- Hamirpur project EIA report accepted by MOEF & meeting with EAC is scheduled for November

Shares of India Pesticides Ltd was last trading in BSE at Rs. 271.25 as compared to the previous close of Rs. 268.35. The total number of shares traded during the day was 13579 in over 754 trades.

The stock hit an intraday high of Rs. 273.00 and intraday low of 266.15. The net turnover during the day was Rs. 3660269.00.

Source : Equity Bulls

Keywords

IndiaPesticides Agrochemicals INE0D6701023 Q2FY23 H1FY23 ResultUpdate