Q1FY21 results: Best Agrolifes revenue jumps 77 per cent, profits increase three-fold
Best Agrolife Ltd, a leading player in the agrochemicals sector and one of India's largest manufacturers of agro-inputs, has announced excellent results for the quarter ended June 30, 2020.
The company's Q1FY21 unaudited results saw the company's total revenue rose to Rs 363.04 crore from Rs 204.18 crore (Q1FY20), which is about a 77 per cent increase on a yearly basis. The profit almost tripled from Rs 5.46 crore in Q1FY20 to Rs 16.21 crore in Q1FY21, while the earnings per share (EPS) rose from Rs 6.03 to Rs 6.95 in the same period.
With regards to earnings, Vimal Kumar, Managing Director Best Agrolife said, "We have defined our objectives clearly and the company will work towards achieving the same wherein the primary focus is to accomplish sustainable EPS growth. This will be supported by incremental earnings across economic cycles. Also, we are anticipating a significant increase in ROCE and ROE which will be driven by our various initiatives."
In terms of ROCE and ROE, the project targets are 32.78 per cent and 24 per cent, respectively in FY22. The company is enabling models to deliver profitable organic growth along with an increase in the commitment towards research and development as well as for creating a strong push for its branded products.
Best Agrolife Ltd had previously announced that it became first in India to have a granted licence/registration for manufacturing Diron (Dinotefuran 20 per cent SG), a super systematic insecticide with quick uptake and knock-down, that controls a broad spectrum of previous and invasive pests. With two formulations, it is super flexible when it comes to application. With quick action through contact and ingestion, resulting in robust pest control management, this product is an import substitute for a similar Japanese insecticide.
Currently, the company caters to several Bluechip Corporates for P2P, which include UPL Ltd, Jubilant, Indo Gulf Fertilisers, Mahindra Summit Agriscience, Bharat Rasayan, etc.
According to a recent survey, the estimated size of the Indian agrochemical market is USD 3 billion, which is positive for companies like Best Agrolife. The boost to the agro sector by the current government will increase the demand for agrochemicals and insecticides.
Towards R&D activities, the company plans to introduce new value-added chemistries and integrated R&D facilities in the chemical zone of Gujarat. The company plans to add new innovative speciality molecules and improve its product basket. These initiatives will increase the percentage of value-added product offerings as well as enhance the overall margins.
Best Agrolife is preparing to increase its formulation plant capacity to 50,000 MTPA. With regards to the pan-India supply chain network, the plan is to increase the distribution network to 2,000+ dealers and 25+ depots.
Considering international footprints, Best Agrolife is in the process of obtaining licences for Vietnam, Myanmar, United Kingdom and the USA. Adding to this, Vimal Kumar said, "This entire drive will be backed by value-added innovative products as we are planning to increase the share of value-added branded products in our product basket.
Best Agrolife product portfolio comprises of more than 60 active ingredients and various formulations of pesticides and plant micro-nutrients for protecting and nourishing a wide range of crops. Its product range includes insecticides, herbicides, fungicides, plant growth regulators etc. It sells under the brand name 'Best'. The company has four strategically located manufacturing plants, two in Uttar Pradesh and two in Jammu & Kashmir. These plants are well equipped with state-of-art indigenous infrastructure for the production of high-quality agrochemicals.