Slide 1: Q2 FY2020 Earnings Presentation
(BSE: 532851 NSE: INSECTICID) Q2 FY2020 Earnings Presentation
Slide 2: Q2 FY2020 Highlights
Q2 FY2020 Highlights Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn) 9.8% 4.1% 13.6% 5,031 720 488 430 4,583 692 9.4% 9.7% 15.1% 14.3% Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 EBITDA Margin (%) PAT Margin (%) Quarterly Highlights: • Higher contribution from Maharatn
Slide 3: H1 FY2020 Highlights
H1 FY2020 Highlights Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn) 10.8% 8.3% 10.1% 8,615 7,773 1,352 847 1,248 770 16.1% 15.7% 9.9% 9.8% H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20 EBITDA Margin (%) PAT Margin (%) Half Year Highlights: • Higher contribution from Mah
Slide 4: Products Freshness Index
Products Freshness Index Proven track record of successful new product launches exhibits IIL’s strong R&D capabilities and continues to provide competitive edge 535 478 70 420 407 Revenue from new product launches (Rs. Cr.) 66 89 15 131 71 299 148 90 11 40 33 13 9 221 38 10 45 34 84 172 30 89 66 41
Slide 5: Management Commentary
Management Commentary Commenting on the results, Mr. Rajesh Aggarwal, Managing Director, said: “The domestic economy in Q2 FY2020 continues to face headwinds which were present at the beginning of fiscal year. Due to broad based slowdown in rural demand, the impact of slowdown was visible in agroche
Slide 6: Growth Strategy
Growth Strategy Optimum Capital Structure and Phase out Generic Products Backward and Forward Integration Operational Efficiency • Gradual reduction in the sale of • Moving on the strategic path of • Strong cash flow generation Generic products (high volume-low backward and forward integration • Cap
Slide 7: Business Overview
Business Overview Insecticides India - A Leading Agro Chemicals Manufacturing Company Engaged in the manufacturing and marketing of crop-protection products Rs. 861 Cr 60,000+ Four product categories: Insecticides, Herbicides, Fungicides, H1 FY20 Sales Retail Outlets Biologicals and Plant Growth Reg
Slide 8: Capabilities and Geographical Presence
Capabilities and Geographical Presence R&D Manufacturing • NABL QC Labs • 5 Formulations plant • In-house R&D Centre 01 02 • 2 Technical synthesis plants • JV with OAT Agrio Co. • 1 Biological manufacturing plant* Japan for dedicated R&D Centre Development Marketing & Training 04 03 • Sale & market
Slide 9: Leading Maharatna Brands
Leading Maharatna Brands PULSOR : Systemic fungicide with preventive and curative action; controls Rice Sheath Blight LETHAL : Organo-phosphorus group of insecticides; controls insects through contact, stomach and vapour action GREEN LABEL : Specialist of weed control in paddy; in line with ‘Make in
Slide 10: Research & Development
Research & Development State-of-the-art in house R&D centre established in 2005, augmented by product innovation R&D center, formulation R&D centre and biological R&D centre • Approved by DSIR, Ministry of Science and Technology 7 Patents Received • Working on new formulations and new combination pr
Slide 11: Financial Performance
Financial Performance Q2 Y-o-Y Q1 Q-o-Q Half Year Y-o-Y (Rs. Million) FY2020 FY2019 Growth(%) FY2020 Growth(%) FY2020 FY2019 Growth(%) Operating Revenue 5,031 4,583 9.8% 3,584 40.4% 8,615 7,773 10.8% Other Income 18 3 12 29 5 Total Revenue 5,049 4,586 10.1% 3,595 40.4% 8,644 7,777 11.1% EBITDA 720 6
Slide 12: Leverage Profile
Leverage Profile (Rs. Million) FY2017 FY2018 FY2019 H1 FY2020 LTM Sep 2019 Long Term Debt 283 145 68 34 Short Term Debt 2,060 968 2,952 2,972 Total Debt 2,342 1,112 3,020 3,006 17.6% Return on Equity Cash & Cash Equivalents 68 196 89 91 Net Debt 2,274 917 2,931 2,915 Total Equity 4,645 5,476 6,613 7
Slide 13: Financial Trends - Annual
Financial Trends - Annual Strong EBITDA and PAT growth with margin improvements every successive years Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn) 6.4% 26.4% 45.7% CAGR CAGR CAGR 11,919 1,856 1,224 10,733 9,882 9,942 1,478 840 1,114 920 597 15.6% 396 13.8% 10.2% 11.2%
Slide 14: Key Ratios
Key Ratios Consistently improving return ratios and generating wealth for shareholders Return on Equity Return on Capital Employed Net Debt/Equity Ratio 18.5% 20.2% 15.3% 0.5x 0.5x 17.4% 0.4x 12.9% 14.6% 12.5% 9.8% 0.2x FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 14
Slide 15: Financial Trends - Quarterly
Financial Trends - Quarterly Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn) 9.8 % 4.1 % 13.6 % Y-o-Y Y-o-Y Y-o-Y 5,031 4,583 720 692 488 631 3,584 430 359 286 2,157 1,989 320 289 17.6% 169 14.3% 15.1% 14.8% 14.5% 14.3% 10.0% 9.7% 9.4% 7.8% Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20
Slide 16: Segment Reporting – H1 FY2020
Segment Reporting – H1 FY2020 Gross Sales by Product Category Gross Sales by Segment 3% 2% 10% 22% Insecticides 30% B2C 57% Herbicides B2B Fungicides 76% Exports PGR Gross Sales vs Internal Consumption Breakdown of Top Seller Range in B2C Sales 45% 42% Maharatna 55% Internal 58% Products Consumption
Slide 17: Segment Reporting – H1 FY2020
Segment Reporting – H1 FY2020 Gross Sales by Segment (Rs. Mn) Gross Sales by Emphasized Product Category (Rs. Mn) +6.6% -1.3% +38.5% +5.8% +7.5% 6,973 3,701 6,541 3,497 3,272 3,044 2,062 2,035 160 222 B2C B2B Exports Maharatna Products Other Products H1 FY19 H1 FY20 H1 FY19 H1 FY20 • Growth in sales
Slide 18: Recent Announcements
Recent Announcements IIL Launches ‘Kunoichi’, a Patented Miticide of Japan’s Nissan Chemical, at Hyderabad • A product registered under 9 (3) category • Kunoichi is invented and developed by Nissan Chemical Corporation, Japan and will be marketed in India exclusively by the Insecticides (India) Ltd.
Slide 19: FY2020 Outlook
FY2020 Outlook Opportunities India is currently the world’s fourth largest producer of Quarterly Outlook agrochemicals. Favourable manufacturing opportunities for Prospects of rabi sowing looks bright due to better soil agrochemical companies in India moisture on account of good monsoon and full res
Slide 20: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Insecticides India Limited (“Insecticides India” or the Company) future b
Slide 21: Insecticides (India) Ltd.
Insecticides (India) Ltd. (CIN: L65991DLl996PLC083909) 401-402, Lusa Tower Azadpur Commercial Complex Delhi - 110033 Telefax: +91 11 - 27679700 - 04 (5 Lines) info@insecticidesindia.com www.insecticidesindia.com