Insecticides (India) Limited, one of India’s leading crop protection and nutrition company, announced its financial results for the quarter and half year ended September 30, 2024.
Q2 FY25 and H1 FY25- Consolidated Financial Performance
|
Particulars (Rs. in Crs) |
Q2 FY25 |
Q2 FY24 |
Y-o-Y |
H1 FY25 |
H1 FY24 |
Y-o-Y |
|
Revenue from Operations |
627 |
696 |
-10% |
1,284 |
1,336 |
-4% |
|
EBITDA |
90 |
82 |
9% |
161 |
128 |
26% |
|
EBITDA Margin (%) |
14.3% |
11.8% |
|
12.5% |
9.6% |
|
|
Profit After Tax |
61 |
53 |
16% |
111 |
82 |
34% |
|
PAT Margin (%) |
9.8% |
7.6% |
|
8.6% |
6.2% |
|
-
Emphasis on Premiumisation with strategic focus on improvement in profitability, working capital, capital ratios and positive cash generation
-
Premium products grew 11%, with Focus Maharatna and Maharatna now constituting 68% of total B2C sales in Q2 FY25, up from 65% in Q2 FY24
-
IIL registered 7% growth in B2C revenue, despite macro industry headwinds with unpredictable weather pattern particularly excessive & continued rain which delayed spraying season, impacting the overall growth in Q2FY25
-
Gross profit margins improved by 670 bps to 32% with focus on premium products and effective cost management on the procurement side
-
Continued robust performance in premium products through New Product Launches, aggressive marketing activities and educating farmers with newer technologies
-
Stanch improvement in working capital to 102 days as compared to 151 days in March 2024
-
Bought back fully paid-up equity shares amounting to Rs. 50 crores during the quarter
Commenting on the results and performance, Rajesh Aggarwal, MD of Insecticides (India) Ltd. said:
“We are pleased to announce our Q2 & H1 FY25 results, reflecting healthy performance across key financial and operational metrics. Achieving Net Profit of Rs 111 Crs in first half, we have already surpassed the full FY24 profit of Rs 102 Crs—a testament to the strength of our strategy and execution. Our focus will remain on driving higher growth in premium products, underpinned by New Product Launches, more extensive demand generation and brand-building initiatives.
During the quarter, we observed firming up of raw material prices although excessive and continued rainfall resulted in lower pest infestation. The farmers delayed their spraying schedule, which adversely impacted revenue growth for the Company. The monsoon has been marking India’s wettest monsoon in four years, with rainfall exceeding 100% of the long-term average, resulting an increase in sowing for the Kharif crop and a promising outlook for Rabi season.
This quarter, we have launched an innovative 9(3) herbicide for maize, Torry Super based on SPF technology, developed by in-house R&D team. SPF technology of Torry Super will provide faster results and long duration control of weeds. We are getting an overwhelming response of Torry Super in maize of Rabi season in the southern & western part of the country, where season has already begun. Our strategic emphasis remains on premiumisation, capital efficiency and surplus cash generation with visible improvement across profitability, working capital & ROCE, ROE.
In a move to reward our shareholders, we completed a buyback of 500,000 fully paid-up equity shares at Rs 1,000 each, amounting to Rs 50 Crs, through internal accrual. With favorable market conditions and intense focus on premiumisation, we expect healthy profit growth and leaner balance sheet as we progress into this financial year.”
