Agrochemicals company Insecticides (India) announced Q1FY24 results:
- Revenue from operations increased by 14.14% to Rs 6,399.53 million in Q1FY24 from Rs 5,606.90 million in Q1FY23 on account of favourable monsoon conditions and increasing share of Focused Maharatna products like Hachiman, Shinwa and Torry as a result of our step ahead go-to-market strategies.
- EBITDA margins stood at 7.13% in Q1FY24, a decrease of 329 bps on account of the liquidation of high-cost inventory from the previous year. The high-cost inventory is significantly liquidated from the balance sheet.
- PAT stood at Rs 291.42 million in Q1FY24, compared to Rs 383.09 million in Q1FY23, margins reduced from 6.83% in Q1FY23 to 4.55% in Q1FY24.
Commenting on the performance the management team of Insecticides (India) stated, “We had a strong quarter to start the year in terms of revenue growth as we witnessed a robust demand for our products owing to favourable monsoon. Although there was an initial delay in rains in certain regions of the country, our widespread presence across India mitigated the impact of this factor and helped us achieve a growth of 14.14% YoY in Revenue from Operations. However, the spillover impact of high-cost inventory from the previous year and pricing pressure impacted EBITDA & PAT Margins which stood at 7.13% and 4.55% respectively for Q1FY24.
We took proactive measures to address the challenges by optimizing our inventory management, ensuring that we maintain a healthy stock level while minimizing the accumulation of high-cost inventory. Furthermore, we are closely monitoring weather patterns and market dynamics to anticipate any potential disruptions to our business operations. By staying agile and responsive, we aim to minimize the impact of external factors on our performance and maintain a sustainable growth trajectory
Looking ahead, we anticipate a sustainable growth trajectory in the market driven by favourable monsoon conditions, an array of Maharatna product launches and stabilisation of prices.
We recently launched promising products in the form of Mission granule and Mission liquid, both of which have received very positive responses from the market and contributed to our topline. Products launched in the last few years like Torry, Hachiman, Shinwa, Green Label, Izuki, Dominant and Kunoichi have started yielding positive results, gaining massive tractions as a result of our concentrated marketing efforts on the entire Focused Maharatna range. We are at a turnaround point where micro-go-to-market strategies have played a vital role to spread brand awareness at the ground level to educate the farmers. Additionally, we are expecting to launch three herbicide Maharatna combination products under 9(3) and one insecticide Maharatna product under 9(4) in Q2 and Q3 usage will be across multiple crops.
Export markets were impacted in FY23 and Q1FY24 by the EL Nino impact in major export markets like North America, Europe, LatAm, and Africa which led to lower demand for agro-inputs and consequently to lower prices. In addition to the above, currency fluctuations and precarious levels of forex reserves with several importing countries led to a delay in the recovery of dues for the entire industry which prompted us to deploy a calibrated approach for exports. However, we have now started witnessing positive signs from the export market such as receiving multiple orders from the dealers, stabilization and upward movement in prices of raw material.
Further, to stay relevant and expand our international footprints, we are actively seeking more than 300 registrations in Europe, Latin America and USA markets. We expect to further increase our registrations in upcoming years.
At IIL, we continue to move forward on our mission to grow responsibly towards a sustainable future through continuous support of our employees and other stakeholders I would like to conclude by thanking all our stakeholders for helping us move in the right direction.”