NACL Industries Ltd. Q2 FY2023 ended 30 September 2022 has reported a revenue growth of 27% to reach Rs. 569 crore.

EBITDA and PAT for the quarter stood at Rs. 58  crore and Rs. 30 crore respectively compared to Rs. 47 crore and Rs. 25 crore in the corresponding period of the previous year.

Total income for the half year ended September 30, 2022 stood at Rs. 1,047 crore, registering a YoY growth of 35%. EBITDA and PAT for the half year ended September 30, 2022 stood at Rs. 95 crore and Rs. 45 crore respectively compared to Rs. 79 crore and Rs. 40 crore in the corresponding period of the previous year.

Exports contributed 40% of the total revenues during the first half of FY 2023. For the quarter and half year ended 30th September 2022, there was an increase of 44% and 73% respectively over the same period last year. America being one of the biggest export markets, contributed 34% of export sales. The company is focused on actively working on new product registration and brand building in new geographies.

The retail business on the domestic side performed fairly well and achieved 17% growth YoY despite headwinds. India witnessed an uneven distribution of monsoons resulting in the overall acreage remaining on the lower side, and a reduced demand for agrochemicals. Domestic retail business contributed 37% of total sales. Domestic institutional business clocked 26% growth driven by higher price realization and product mix.

Existing Plant at Srikakulam has achieved 16% increase in production as compared to the same period last year. The brownfield capacity expansion is also going as per schedule.

The R&D team of the company continues to focus on developing new chemistries along with improving the production process of existing products in order to reduce cost of production of active ingredients (AI) and technical intermediates.

The greenfield site at Dahej, Gujarat is currently operational and is expected to start regular production soon.

Pavan Kumar, MD & CEO, NACL Industries Ltd. said, "Post the strong Q1 results, our company continued to witness sustained growth momentum in Q2 FY23 driven by higher realizations and moderate volume growth. Agrochemical companies are facing declining margins due to uneven monsoons across different parts of the country and high input costs. Despite such challenges, our company benefits from being present across the entire value chain of the agrochemical business, right from manufacturing to distribution. Our close association with customers and retailers enables us to serve their needs reliably." 

"With our greenfield site at Dahej going operational and the ongoing brownfield capacity expansion plans in Srikakulam we are well poised to take advantage of the favourable tailwinds for the upcoming Rabi season, and the outlook for H2 looks positive," added Kumar.