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HomePosts Tagged "Best Agrolife Ltd."
Agribusiness, Agro chems – Chemicals, Company News, Finance, India

In Q4 FY24 Company’s Revenue from Operations declined by 46.68 per cent Y-o-Y to Rs. 135.39 crore compared to Rs 253.91 crore in Q4 FY23.

Best Agrolife Limited, amongst India’s leading agrochemicals manufacturers, announced its audited financial results for the quarter and financial year ended March 31st, 2024, in the Board meeting held on 24th May 2024.

Company’s Revenue from Operations declined by 46.68 per cent Y-o-Y to Rs. 135.39 crore in Q4 FY24 compared to Rs 253.91 crore in Q4 FY23, due to an unexpected seasonal failure, of Q3 and Q4 of FY24 as against normal seasonal conditions in same period last year, leading to lower-than-expected sales coupled with surge in sales returns. Q4 FY24 EBITDA (excluding Other Income) was a loss of Rs. 67.10 crore against a profit of Rs 7.14 crore in Q4 FY23. Q4 FY24 PAT stood at loss of Rs 72.49 crore against a loss of Rs 8.41 crore in Q4 FY23, caused by price erosion and our investments in brand building.

Company’s revenue from Operations grew by 7.31 per cent to Rs 1,873.32 crore in FY24 compared to Rs. 1,745.68 crore in FY23. This is mainly due to significant growth in branded sales as compared to the previous corresponding period. FY24 EBITDA (excluding Other Income) was at Rs. 225.59 crore against Rs. 313.66 crore in FY23, a decline of 28.08 per cent on Y-o-Y basis. This is mainly due to shift in business strategy from institutional sales to branded sales, which has resulted in higher employee costs and other expenses. The increase in employee costs is attributable to the strategic investment in manpower to expand the dealer network. Additionally, other expenses have increased due to incremental travel and marketing expenses. In FY24, company posted PAT of Rs. 106.27 crore.

Commenting on the result and overall update on the financial year 2023-2024, Vimal Kumar, Managing Director, Best Agrolife Ltd. said, “Despite the many challenges faced during the year, for the full year FY24, our revenue grew by 7 per cent on Y-o-Y basis. This growth was driven by our shift in business strategy from institutional sales to branded sales. This has resulted in the growth of our branded business by 85 per cent.  However, the EBITDA margins reduced to 12 per cent in FY24, mainly because of the stress on the gross margin due to pricing pressures in the market, primarily caused by oversupply from China. Combination of weather factors, our shift towards branded products, and an expanding distributor network led to higher trade inventory.

Additionally, employee costs have gone up due to a shift in business strategy. The planned increase in employee cost is a strategic investment to strengthen our sales distribution network. Also, other expenses have risen due to incremental marketing costs for focus on branded business.

Despite the high competition from imports, particularly pricing pressure from China and the challenges posed by the global economic climate, we have maintained good profit margins.

This year, our company achieved several significant operational milestones. We became a major partner in Kashmir Chemicals by acquiring a 99 per cent stake, increasing our formulation capacities. Our strategic acquisition of Sudarshan Farm Chemicals will allow us to leverage SFCL’s robust R&D capabilities, IP portfolio, and backward-integrated technical manufacturing expertise. These developments will be crucial in enhancing our manufacturing and innovation capabilities.

In Q4 FY24 Company’s Revenue from Operations

Agro chems – Chemicals, Company News, India

The company is also gearing up to launch its ambitious product Tricolor in July

Best Agrolife Ltd. recently received three more major registrations. BAL informed that the Central Insecticides Board & Registration Committee (CIBRC) had granted the registrations for Technical Indigenous manufacturing of Diclosulam technical 94 per cent minimum, Boscalid technical 96 per cent minimum and Dimethomorph technical 95.5 per cent minimum to one of its wholly owned subsidiary Best Crop Science Pvt. Ltd.

Diclosulam is a broadleaf herbicide that is used to control weeds in soybean and peanut crops, while Boscalid is a foliar fungicide against a broad range of fungal pathogens in a wide range of crops, including vegetables and other crops. It inhibits spore germination and germ tube elongation and is also effective in all other stages of fungal development. 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.

“These registrations are crucial for our company and will enable us to serve the farming community better. Along with producing the technicals, we also have plans to develop their highly sought-after formulation products, which will expand our product line further and help us maintain the goal of 30 per cent growth and 20 per cent EBITDA margin,” said Vimal Kumar, MD of BAL.

“For example, Metiram 44 per cent + Dimethomorph 9 per cent WG and Dimethomorph 12 per cent + Pyraclostrobin 6.7 per cent WG are the major formulations of Dimethomorph whereas Boscalid 25.25 + Pyraclostrobin 12.8 per cent WG is the prime Boscalid formulation. Since approvals for Metiram and Pyraclostrobin technicals are already in place with the company, we can now develop these products in-house in both technical and formulations segments,” Vimal Kumar added.

It is significant to mention that BAL recently became the first Indian agrochemical company to manufacture both AI and formulations of Pyroxasulfone after getting the CIB registration for the domestic manufacturing of Pyroxasulfone 85 per cent WG. The company is also set to launch their much-awaited fungicide Tricolor, a combination product of Trifloxystrobin 10 per cent + Difenoconazole 12.5 per cent + Sulphur 3 per cent Sc. It effectively controls several crop diseases like Sheath blight, Powdery Mildew, Scab, and Alternaria in Rice, Tomato, Grapes, Chilli, Wheat, Mango, and Apple.

The company is also gearing up to

Agro chems – Chemicals, Company News, Finance, India

 The company will also invest to enhance manufacturing capabilities and create backward integration in its manufacturing process.

Best Agrolife Ltd., India’s leading agrochemicals manufacturer, has announced its medium to long-term target to gain 15-20 per cent market share. The company is also enhancing its manufacturing capabilities through ‘brown field’ and ‘green field’ capex plans.

Besides, the company is also seeking 25-30 per cent growth in revenue by increasing the share of the Formulation Business and B2C segment. This will also ensure consistency in healthy EBITDA delivery, offering a better return on equity. Additionally, the company is spreading its footholds in the overseas markets in FY 23-24 to replicate its domestic success story with selective offerings, ensuring sustainable and healthy profit margins.

“Best Agro is working proactively to maintain its leadership position. The investment plans aim to build the company’s manufacturing capabilities, create backward integration in its manufacturing process, and improvise gross margin and working capital management. Along with investments, we believe that schemes such as ‘Make in India’, and production-linked incentives (PLI) will boost domestic production, leading to the sector’s and the company’s growth. We are also expanding our footholds in the overseas markets,” says Vimal Alawadhi, MD, Best Agrolife Ltd.

The company is also optimistic about the long-term benefits of simplifying the export registration process, reducing trade barriers, and improving focus on bilateral trade agreements to enhance revenue generation through exports.

 The company will also invest to enhance

Agro chems – Chemicals, Company News, Finance, India

Q3 PAT at Rs 30.61 up 101 percent from Rs 15.23 crore last year.

Best Agrolife Ltd. the leading agrochemical company in India, declared financial results for Q3FY23 in its Board of Directors meeting. The company showed significant Year on Year growth for the quarter ending & 9 months ending 31st Dec 2022.

Consolidated Key Highlights-Q3 & 9 Months ending FY23

  • The company recorded revenue of Rs 327.8 crore, a YoY growth of 41 percent as against Rs 232.5 crore in Q3 FY22. On 9 months basis revenue grew 65.5 percent (Rs 1492 crores as against Rs 901 crore in 9 Months last year) Q3 EBITDA at Rs 58.1 crore up 79 percent from Rs 32.43 crore last year. On 9 months basis EBITDA at Rs 306.5 Crores up 196 percent from last year of Rs 103.7 cr.
  • Q3 PAT at Rs 30.61 up 101 percent from Rs 15.23 cr last year. 9 Months PAT at Rs 200.6 cr up 202.2 percent from last year of Rs 66.4 cr.

Commenting on the performance for the quarter and period ending December 2022 Vimal Alawadhi, Managing Director, Best Agrolife Ltd. (BAL) said, “We are glad to share that despite being a lean season BAL successfully managed to remain consistent with its performance in the third quarter of this financial year. While the company has shown growth with a positive outlook across all the business segments during this period. We are fully focussed on our global export expansion which will start reflecting in our revenue growth soon. The company is set to introduce new and exclusive patented products like Ronfen and other different segment products which will scale up our growth further in the next financial year.”

It is important to note that BAL recently obtained registration for the indigenous manufacturing of Cyhalofop-butyl and Propaquizafop Technical u/s 9(3) along with several crucial technicals.

Q3 PAT at Rs 30.61 up 101 percent from