Agrochemicals manufacturer Insecticides India has reported a 33 per cent drop in its profit after tax at Rs 24 crore in the first quarter of current fiscal from Rs 36 crore in Q1 FY20.
Total revenue moved up by 14 per cent to Rs 411 crore in Q1 FY21 from Rs 360 crore in Q1 FY20. The company said revenue growth was driven by all segments.
Branded sales increased by 16 per cent and contributed 73 per cent to total revenue while exports increased by 53.3 per cent and institutional sales increased by 5.3 per cent.
But earnings before interest, taxes, depreciation and amortiation (EBITDA) fell to Rs 49 crore from Rs 63 crore in the same period. Finance cost came down to Rs 2.2 crore from Rs 6.9 crore while basic earnings per share too dropped to Rs 11.65 from Rs 17.39.
Managing Director Rajesh Agarwal said profitability for the quarter was impacted due to challenges caused by Covid-19 pandemic like raw and packing material availability constraint, transportation challenges, shortage of labour and liquidity crunch in the market.
"Furthermore, we made a provision for trades receivables amounting to Rs 10 crore. Looking forward, the forecast of a normal monsoon has created prospects of a healthy crop season and support of government through fiscal and monetary reforms for agriculture sector during the crisis will go a long way in augmenting the sector's growth."
Agarwal said the company has 13 products approved under 9(3) category and the plan to launch total of 10 new products in current fiscal year remains on track.
Insecticides India has formulation facilities at Chopanki in Rajasthan, Samba and Udhampur in Jammu & Kashmir, and Dahej in Gujarat. It also has technical synthesis plants at Chopanki and Dahej to manufacturetechnical grade chemicals also providing a competitive edge by backward integration.
Insecticides India Foundation works closely with Indian farmers to impart them knowledge regarding modern agricultural practices and techniques.
( With inputs from ANI )