Insecticides India Limited revenue from operations for Q4 FY2020 is Rs. 239 crore, registering a growth of 19%. 

 

The EBITDA for Q4 FY2020 is Rs. (2.5) crore, with margins of (1.0)% compared to 15.2% and PAT of Rs. (7.3) crore, with margins of (3.1)% compared to 14.3%. 

 

Commenting on the performance, Rajesh Agarwal, Managing Director said, “FY2020 started on a subdued note with a broad-based slowdown in the economy as well as rural demand due to delayed monsoon and scattered rainfall. Despite a subdued domestic environment, Insecticides India continued to deliver a resilient growth led by its strong product portfolio and greater market acceptability of products among farmers."

 

The company recorded revenue from operations of Rs. 1,363 crore in FY2020, representing a growth of 14.2% on a Y-o-Y basis. Revenue growth was driven by branded sales which increased 29% contributing 72% to the total revenue and exports which increased 6.7%. 

 

The topline performance was partially offset by a decline in institutional sales. The company delivered EBITDA of Rs. 156 crore in FY2020, a decline of 16.7% with margins of 11.4%. Net profit for the year was Rs. 86 crore, a decrease of 29.7% with margins of 6.3%. Despite a relatively subdued profitability, the company was focused on ongoing deleveraging strategy and was able to reduce the net debt by Rs. 175 crore during the year and is expected to become debt free by end of first quarter of FY2021.

 

Growth in revenue was lower than expectation due to delay in new product registrations and restricted exports to certain countries. Profitability for the year was impacted due to higher contribution from low-margin generic products and decline in realizations from Nuvan and Thimet due to market pressure. Furthermore, due to the rise of COVID-19 pandemic globally, businesses were faced with liquidity challenges and we could foresee the situation aggravating in the coming months with the prolonged lockdown.