Insecticides (India) Reports 18% EBITDA Growth in Q1, Targets 10% Revenue Growth
Insecticides (India) Limited (IIL) reported a 5% year-on-year revenue increase to INR 691.00 crores in Q1. EBITDA grew 18% to INR 85.00 crores, with margin expanding by 122 basis points to 12.30%. PAT rose 18% to INR 58.00 crores. Premium products grew 20%, now representing 58% of B2C sales. New product launches generated INR 42.00 crores in Q1 sales. All manufacturing facilities are operating at 100% capacity. The company aims for 10% overall revenue growth for the fiscal year while maintaining current EBITDA margins.
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Insecticides (India) Limited (IIL) has reported a strong performance in the first quarter, with significant growth in both revenue and profitability. The company's focus on premium products and strategic expansion has yielded positive results, positioning it for continued growth in the agrochemical sector.
Financial Highlights
IIL reported a 5% year-on-year increase in revenue, reaching INR 691.00 crores in Q1. The company's EBITDA saw an impressive 18% growth, rising to INR 85.00 crores, with the EBITDA margin expanding by 122 basis points to 12.30%. Profit After Tax (PAT) also showed robust growth, increasing by 18% to INR 58.00 crores.
Premium Product Growth
The company's strategic focus on premium products has paid off, with this segment growing by 20% and now representing 58% of B2C sales. IIL's Managing Director, Rajesh Kumar Aggarwal, highlighted the success of recently launched products, which generated INR 42.00 crores in Q1 sales, surpassing the entire previous fiscal year's sales of INR 34.00 crores for new launches.
Product Portfolio and Market Expansion
IIL has been actively expanding its product portfolio, with 12 new products launched in the previous fiscal year. The company is particularly excited about products like Altair, a patented herbicide for rice, and SPARCLE, a new product for rice through a partnership with Corteva. These new offerings are expected to contribute significantly to future growth.
Operational Performance
The company reported that all its manufacturing facilities are operating at 100% capacity utilization. IIL has added over 100 new reactors at its Dahej plant and increased its crop advisors from 900 to over 1,300, enhancing its market reach and farmer engagement.
Segment-wise Performance
In terms of revenue mix:
| Segment | Contribution |
|---|---|
| B2C | 75% |
| B2B | 23% |
| Exports | 2% |
The company is focusing on maintaining a balance between these segments while driving growth in premium products.
Future Outlook
Management has set a target of 10% overall revenue growth for the fiscal year and expects to maintain current EBITDA margin levels. The company is also expanding its capacity with a new facility at Sotanala, Rajasthan, with the formulation unit expected to start operations in the next kharif season.
Strategic Initiatives
IIL is transforming from a generic product company to a solution provider, focusing on new generation products and mixtures that offer complete solutions to farmers. The company is strengthening its distribution network, expanding retail outlets, and enhancing farmer engagement through various channels, including social media and on-ground activities.
Conclusion
With its strong performance in Q1 and strategic focus on premium products and market expansion, Insecticides (India) Limited appears well-positioned for sustained growth in the coming quarters. The company's investments in new products, manufacturing capabilities, and market reach are expected to drive its performance in the competitive agrochemical sector.
Historical Stock Returns for Insecticides
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.87% | +0.49% | -14.35% | +49.29% | -7.03% | +151.79% |
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