Best Agrolife Limited (BAL) (BSE: 539660) today reported financial results for the Quarter ended June 30th, 2023.
Commenting on results, Mr. Vimal Kumar, Managing Director, Best Agrolife Limited, said, “I am delighted to share that Best Agrolife has achieved remarkable growth momentum, with revenue from operations growing by 32% Y-o-Y to Rs. 612 Cr, despite the headwinds that the agrochemicals industry has been facing. Our herbicide portfolio products including Amito, Propique, Tombo, Ronfen and Warden have been the driving force behind this quarters growth. Additionally, our EBITDA margins of 21% can be attributed to the increasing contribution of speciality, niche, and patented products to our overall revenue.
This quarters performance also reinforces the widespread acceptance of our products and Best Agrolifes strong brand presence in the Indian agrochemical market. Focusing on FY24, we have already launched a couple of technicals in Q1, which are seeing promising traction, with plans to introduce one patented product in Q2. Our pipeline for technicals and niche formulations is geared up for launch over the next few quarters.
While the agrochemicals industry continues to face challenges, I firmly believe that our niche product basket will not only shield us from industry perils, but also drive robust growth in FY24. This gives us a reason to remain steadfast in our commitment to achieving a 30% growth target and maintaining 20% EBITDA margins for FY24.”
Key Results Highlights (FY23 Consolidated):
Revenue from operations for Q1 FY24 stood at Rs. 612 cr which grew by 141% QoQ and 32% on YoY basis compared to Rs. 254 cr in Q4FY23 and Rs. 464 cr in Q1FY23
Gross margin for the quarter is at 30% as compared to 19% in Q4FY23 and 21% in Q1FY23 which was an expansion of 1100bps QoQ and expansion of 900bps YoY.
EBITDA for the quarter came at Rs. 130 cr up 1720% QoQ and 97% YoY compared to Rs. 7 cr in Q4FY23 and Rs. 66 cr in Q1FY23. The improvement in EBITDA was driven by better product mix during Q1 FY24
EBITDA margin for the quarter came at 21% as compared to 3% in Q4FY23 and 14% in Q1FY23 which was an expansion of 1800bps QoQ and expansion of 700 bps YoY.
PAT for the quarter was at Rs. 90 cr, up 1168% QoQ and 124% YoY compared to Rs. (8) cr in Q4FY23 and Rs. 40 cr in Q1FY23.
PAT margin for the quarter came at 15% as compared to (3%) in Q4FY23 and 9% in Q1FY23 which was an expansion of 1800 bps QoQ and expansion of 600 bps YoY.
Key Business highlights for Q1 FY24:
Products Launched during Q1 FY24:
BAL Launched 2 herbicide products during the quarter, Propiquazafop and Ametryn under the brand name Propique and Amito respectively
Harnessing Clean Energy
Best Crop Science Pvt. Ltd.(BCS), a wholly owned subsidiary of BAL, has entered a PPA and SHA for the supply of 3MW solar energy from a plant in UP which will be used to power the manufacturing unit in Gajraula. With this, BAL anticipates 33% per unit of electricity cost savings while achieving a reduction of over 4,000 tonnes in carbon emissions.
Approvals and Registration received:
BAL is the First Indian Agrochemical Manufacturer that has been granted registration for indigenous manufacturing of the product Trifloxystrobin 10% + Difenoconazole 12.5% + Sulphur 3% Sc under section 9 (3) FIM. This will be a patented product under the brand name Tricolor. This combination effectively controls Sheath Blight, Powdery Mildew, Scab and Alternaria in Rice, Grapes, Tomato, Chili, Wheat, Mango and Apple.
Best Crop Science has been granted the registrations for Technical Indigenous manufacturing of Diclosulam technical 94% minimum, Boscalid technical 96% minimum and Dimethomorph technical 95.5% minimum from Central Insecticides Board & Registration Committee (CIBRC). Diclosulam is a broadleaf herbicide used to control weeds in Soyabean and Peanut crops. Boscalid is a foliar fungicide against a broad range of fungal pathogens in a wide range of crops, including vegetables and other crops. Dimethomorph is a systemic fungicide that protects Potato, Tomato and Grape crops from fungi in the water mould family, such as root rot, crown rot, late blight and downy mildew.
Seedlings India, BAL’s fully owned subsidiary has been granted registration to manufacture Pyroxasulfone 85% WG domestically in accordance with section 9(3) FIM vs FIT. This is a herbicide for Wheat, Corn and Soyabean. Pyroxasulfone market is worth over Rs. 450 cr and BAL is confident in reaching Rs. 125 Cr. penetration in the first year after introduction.
Capex Update:
Brownfield expansion with a Capex plan of Rs 200 cr in technical manufacturing unit Best Crop Science Private Limited (a wholly owned subsidiary of the Company) and market footprint expansion is making good progress.
Product Pipeline for FY24:
BAL has pipeline of 8+ products to be launched during the course of FY24 which includes couple of patented products as well as some niche combination products and technicals.