Best Agrolife Limited announced its unaudited financial results for the quarter ended December 31, 2024. The company reported 13 per cent YoY decline in its revenue from operations to Rs. 274 crore in Q3 FY25 as compared to Rs. 315 crore in Q3 FY24. This decline was primarily due to the recent cyclonic conditions in southern India, which severely impacted the chilli crop, a key contributor to the region's agricultural economy. Frequent rainfall during the season disrupted several crucial pest control sprays, exacerbating the situation.

Meanwhile, Q3 FY25 gross profit stood at Rs. 89 crore, increasing from Rs. 72 crore in Q3 FY24. The gross profit margin stood at 32% with an improvement of 900 Bps as compared to last year showcasing the impact of higher braded sales contribution.

Q3 FY25 EBITDA (excluding other income) was at Rs. -6 crore compared to Rs. 19 crore in Q3 FY24. The EBITDA margin stood at -2% with an decrease of 800 Bps on YoY basis, mainly due to higher fixed costs associated with investments in sales teams and a loss of Rs. 11 crore resulting from foreign currency fluctuations.

Q3 FY25 loss stood at Rs. 24 crore compared to Rs. 7 crore in Q3 FY24.

Commenting on the result and overall update on the Q3 FY25, Vimal Kumar, Managing Director, Best Agrolife Ltd. said: “As we reflect on the current state of the agrochemical industry, this season has been challenging climatically and demand wise. Recent cyclonic conditions in southern India have affected the agricultural landscape, particularly in key states like Andhra Pradesh, Telangana, and Tamil Nadu. The disrupted weather patterns, delayed monsoons, and extended rainfall impacted the crop cycles, delaying and causing reduction in agrochemical consumption. Overall, we observed unfavorable market conditions, such as the drop in prices of key crops like chillies and tomatoes, making it difficult for farmers to invest in crop protection products. The quarter was further impacted by the strengthening of USD leading to incurring a foreign currency loss.

“This combination of reduced demand and strained market sentiment created a challenging operating environment for the company. The revenue from operations stood at Rs 274 crores, a dip of -13% (Q3FY24). We have experienced a weaker Q3 with PAT of -24 crores as compared to -7 crores in Q3FY24. The widening of the quarterly loss was primarily due to a weaker revenue from operations. We continue to see positivity in our strategy of shift towards a business-to-consumer (B2C) model, increasing the contribution of branded sales to 72% in 9 months of FY25. The company’s branded business improved due to introduction of new products and witnessed a volume increase. Despite the volume growth, we saw a 20% reduction in product prices impacting our overall revenue. Our institutional business saw a reduction by Rs. 72 crores in line with our movement to B2C segment, but the corresponding expected increase in the branded sales was impacted by the reduced demand and price erosion despite a healthy volume growth.

“While these results are below our expectation, we view them as an opportunity to fine tune our operations for better margins by reducing costs, optimizing operations and building efficiencies. We remain focused on stabilizing our financial performance in the upcoming quarters. We intend to bring down costs as a percentage of sales and be better equipped to navigate the current and future challenges. Our focus on IP generation, technical R&D, new formulation research and development of innovative products will continue with renewed zeal.”