Q2 and H1 Performance Highlights for FY18

New Delhi, November, 2017

Insecticides India Ltd. (IIL), one of the premier agrochemical companies of India, announced its financial results for the quarter and half-year ended on September 30, 2017.

FY18 Q2 & HY Performance Overview

Total Revenue for the second quarter i.e. Q2 FY18 remained at par vis-à-vis same period last year i.e. Rs. 4,189 million as against Rs. 4,147 million in Q2 FY17
  • The revenues posted registered a subdued growth since the company has been focusing on the branded segments and a higher concentration in the B2C category and gradually shelving off the generic products
  • No material impact of GST witnessed across its portfolio, IIL enhanced credit lines to their distributors and retailers to support business growth of the branded segments

IIL enters Agri-Organic Sector in a big way to provide complete solution to farmers, launches revolutionary Bio product “KayaKalp” to improve soil health
  • The innovative product works as revitalizer for soil
  • Promises to also reduce use of chemical fertilizers by up to 25%
  • Launches a nation-wide drive to educate farmers on soil rejuvenation

EBIDTA improved by 20% QoQ to Rs. 581 million in September quarter FY18 from Rs. 484 million in Q2 FY17
  • Reported higher margins of 200 bps on account of increasing realizations in the herbicide segment, the EBITDA margin is growing in terms of strong growth of B2C business, due to strong brands acceptability
  • Robust performance driven by healthy volumes and better realization, cost of material consumed decreased by 15% due to change of product mix along with sale new generation molecules contributing higher margins
  • IIL delivers a strong value proposition to a mass customer base. This combined with growing acceptance of the brand portfolio, deeper penetration in existing territories and expansion in newer areas is driving volume growth of the branded segment

PAT increased by 26% QoQ to Rs. 361 million in Q2 FY18 versus Rs. 287 million in Q2 FY17 as the Company continues to focus on profitable growth

Diluted EPS for Q2 FY18 stood at Rs. 17.49 per share as against Rs. 13.89 per share in Q2 FY17

Management Comments

Commenting on the results, Mr. Rajesh Aggarwal, Managing Director, Insecticides (India) Ltd. said: 
On the company’s performance, Mr. Rajesh Aggarwal, Managing Director, Insecticides India Ltd. (IIL) said, “The company is firmly on growth path. We are witnessing great traction for our products. Launch of new products gives us depth in our offerings to the markets and also supports us expanding our reach. We expect to continue the same trend in our performance. IIL firmly believes in its R&D team and their efforts to on-goingly deliver new product offerings which cater to market needs. These efforts are ably supported by our ground team which in-turn has benefitted millions of farmers by providing them products which are economically viable for them and educating them to use it optimally. I firmly believe that IIL team will take the company to newer peaks.

Your company has introduced a revolutionary organic product to answer the problem of soil degradation. It is going to be a positive contribution in the development of farmers and agriculture. As a fast growing company, IIL is continuously updating itself by enhancing intellectual capabilities, manufacturing processes to offer smarter solutions to the challenges, an average farmer faces every day in his field. By following a stringent business model, the company is collaborating with global brands and integrating its operations across R&D, manufacturing, marketing, development and distribution to deliver world class solutions to the farmers.

We have great faith in what we are doing and together we are looking forward to an exciting year ahead with newer opportunities and challenges. Your company shall continue to grow successfully. With the support of our customers, vendors and channel partners and other important stake holders, our will is to reach our goals with passion and determination.

I sincerely thank our Shareholders, entire IIL team, Management and Board for their continued support”.

 

Rajesh Aggarwal

  Managing Director, Insecticides (India) Ltd.

About Insecticides (India) Ltd.

Insecticides (India) Ltd. (IIL), is a BSE & NSE listed India’s leading and one of the fast growing Agro chemicals manufacturing company. IIL has emerged as a front-line performer in India’s crop care market and is all set to grow impressively.

IIL owns the prestigious Tractor Brand which is highly popular among the farmers. This umbrella brand of its agro products signifies the company’s deep connection with the farming community. The largest selling brands of IIL include Lethal, Victor, Thimet, Nuvan, Monocil, Pulsor, Hakama, Mycoraja, Xplode etc. IIL’s latest products Green Label and Kaya Kalp are expected to add another dimension of growth to the company.

IIL has entered into Technical and marketing MoU with American Vanguard Corporation (AMVAC), USA to manufacture and market “Thimet” and “Nuvan”, an insecticide that is a household name in India. Also, they have a proud tie-up with Japanese companies like Nissan Chemical Industries Ltd., and Nihon Nohyaku.

IIL has state-of–the–art formulation facilities in Chopanki (Rajasthan), Samba & Udhampur (Jammu & Kashmir) and Dahej (Gujarat). IIL also has technical synthesis plants at Chopanki and Dahej to manufacture technical grade chemicals such as Dichlorovos Glyphosate, Thiamethoxam, Thiaphenate Methyl, Difenthiuron, Tricyclozole providing the competitive edge by backward integration.

IIL foundation is an initiative by IIL which works closely with Indian farmers to impart them knowledge regarding modern agricultural practices and techniques.

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