Insecticides (india) Limited · NSE:INSECTICID
Insecticides (india) — Q4 FY2020 Earnings Presentation
26 slides from Insecticides (india)'s earnings presentation, Jun 25, 2020
Slide 1: Q4 and Full Year FY2020 Earnings Presentation
(BSE: 532851 NSE: INSECTICID) Q4 and Full Year FY2020 Earnings Presentation
Slide 2: FY2020 Highlights
FY2020 Highlights Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn) 14.2% (16.7)% (29.7)% 13,632 11,935 1,872 1,224 1,559 860 15.7% 11.4% 10.2% 6.3% FY19 FY20 FY19 FY20 FY19 FY20 EBITDA Margin (%) PAT Margin (%) Full Year Highlights: • Total branded sales increased by 29%, c
Slide 3: Q4 FY2020 Highlights
Q4 FY2020 Highlights Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn) 19.0% 2,387 304 286 2,005 15.2% 14.3% Q4 FY19 Q4 FY20 (25) Q4 FY19 Q4 FY20 (73) Q4 FY19 Q4 FY20 EBITDA Margin (%) PAT Margin (%) Quarter Highlights: • Total branded sales increased by 33%, contributing 59
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 571 535 30 478 70 90 Gross Revenue from new product launches (Rs. Cr.) 420 66 89 59 299 131 92 148 90 11 13 9 9 221 33 10 45 38 45 34 172 8
Slide 5: Covid-19 Impact
Covid-19 Impact Industry : Agriculture sector remained resilient during the turbulent phase of Covid-19 Demand Forecast Availability of Raw Materials Shutting down of Operations • Domestic agrochemical industry is • Challenges due to Covid-19 resulted in • Operations are affected due to expected to
Slide 6: Management Commentary
Management Commentary Commenting on the results, Mr. Rajesh Aggarwal, Managing Director, said: “FY2020 started on a subdued note with a broad-based slowdown in the economy as well as rural demand due to delayed monsoon and scattered rainfall. Despite subdued domestic environment, Insecticides India
Slide 7: Growth Strategy
Growth Strategy R& D will results in New product Phase out Generic Products Exports launches in Maharatna Category • Focus on in-house R&D and international • Working on registration in new • Phasing out the Generic Products (high partners to launch new products countries with 100+ export agreements
Slide 8: Business Overview
Business Overview Insecticides India - A Leading Agro Chemicals Manufacturing Company Engaged in the manufacturing and marketing of crop-protection products Rs. 1,363 Cr 60,000+ Four product categories: Insecticides, Herbicides, Fungicides, FY20 Sales Retail Outlets Biologicals and Plant Growth Regu
Slide 9: 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 10: Leading Maharatna Brands
Leading Maharatna Brands PULSOR : Systemic fungicide with preventive and curative action; controls Rice Sheath Blight GREEN LABEL : Specialist of weed control in paddy; in line with ‘Make in India’ LETHAL : Organo-phosphorus group of insecticides; controls insects through contact, stomach and vapour
Slide 11: 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 9 Patents Received • Working on new formulations and new combination pr
Slide 12: Financial Performance
Financial Performance Q4 Y-o-Y Q3 Q-o-Q Full Year Y-o-Y (Rs. Million) FY2020 FY2019 Growth(%) FY2020 Growth(%) FY2020 FY2019 Growth(%) Operating Revenue 2,387 2,005 19.0% 2,629 (9.2)% 13,632 11,935 14.2% Other Income (9) (6) - 8 (218.3)% 26 7 245.0% Total Revenue 2,378 1,999 18.9% 2,636 (9.8)% 13,65
Slide 13: Leverage Profile
Leverage Profile Focus on strengthening balance sheet and cash position (Rs. Million) FY2017 FY2018 FY2019 FY2020 Long Term Debt 283 145 68 19* Company continues to strengthen Balance sheet through debt reduction and Short Term Debt 2,060 968 2,952 1,835 improving collection process Total Debt 2,342
Slide 14: Financial Trends - Annual
Financial Trends - Annual Strong Revenue and profitability growth in last 5 years Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn) 8.4% 14.1% 21.4% CAGR CAGR CAGR 13,632 11,935 1,872 1,224 10,733 1,559 9,882 9,942 1,478 840 860 1,114 15.7% 920 13.8% 597 10.2% 11.2% 11.4% 39
Slide 15: Key Ratios
Key Ratios Consistently high returns to shareholders and strong capital structure Dividend Payout Ratio Return on Equity 18.5% 4.82 15.3% 12.9% 11.8% 9.8% 2.41 2.41 2.41 2.41 11.6% 12.0% 8.3% 5.9% 4.1% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 DPS Payout Ratio Return on Capital Employed Net
Slide 16: Cash Flow from Operations vs Free Cash Flows
Cash Flow from Operations vs Free Cash Flows Generated strong cash flows to support growth plans and mitigate potential risk (Rs. Mn) 2,419 2,134 1,815 1,535 845 655 40 (57) (99) (389) (1,331) (1,706) FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Cash Flow from Operations Free Cash Flows 16
Slide 17: Working Capital Cycle
Working Capital Cycle Management is fully committed to improving its working capital cycle (Working Capital Days) 313 263 209 190 195 188 189 184 151 158 116 124 115 98 89 78 80 86 76 75 Payables Receivables Inventory Net Working Capital FY2016 FY2017 FY2018 FY2019 FY2020 • Net working capital days
Slide 18: Financial Trends - Quarterly
Financial Trends - Quarterly Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn) 19.0% Y-o-Y 5,031 720 631 488 3,584 359 2,629 304 286 2,387 230 2,005 17.6% 14.3% 86 15.2% 8.7% 14.3% 10.0% 9.7% 3.3% (25) (73) (1.0)% (3.1)% Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q4 FY19 Q1 FY2
Slide 19: Segment Reporting –FY2020
Segment Reporting –FY2020 Net Sales by Product Category Net Sales by Segment 10% 2% 5% 23% Insecticides 29% B2C 59% Herbicides 72% B2B Fungicides Exports PGR Net Sales vs Internal Consumption Breakdown of Top Seller Range in B2C Sales 45% Maharatna 55% 51% 49% Internal Products Consumption Other Pro
Slide 20: Segment Reporting –FY2020
Segment Reporting –FY2020 Net Sales by Segment (Rs. Mn) Net Sales by Emphasized Product Category (Rs. Mn) +29.0% -15.1% +6.7% +17.7% +42.2% 9,853 5,024 4,829 7,638 4,104 3,534 3,696 3,138 601 641 B2C B2B Exports Maharatna Products Other Products FY19 FY20 FY19 FY20 • Sale of Maharatna products conti
Slide 21: FY2021 Outlook
FY2021 Outlook Opportunities India is currently the world’s fourth largest producer of Quarterly Outlook agrochemicals. Normal monsoon and improved kharif Increased demand for herbicides due to migrant labour issue performance should drive growth. India’s current in Punjab and Haryana. Recent locust
Slide 22: 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 23: Insecticides (India) Ltd. contact details
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
Slide 24: Q4 and Full Year FY2020 Results - Press Release
Press Release June 25, 2020 Q4 and Full Year FY2020 Results - Press Release Delhi, India, June 25, 2020: Insecticides India Limited (referred to as “IIL” the “Company”), one of the premier agrochemical companies in India, today announced its financial results for the fiscal quarter and full year end
Slide 25: Press Release June 25, 2020
Press Release June 25, 2020 Growth in revenue was lower than expectation due to delay in new product registrations and restricted exports to certain countries. Profitability for the year was impacted due to higher contribution from low- margin generic products and decline in realizations from Nuvan
Slide 26: About Insecticides India
Press Release June 25, 2020 About Insecticides India: Insecticides (India) Ltd. (IIL), is a BSE and NSE listed, India's leading and one of the fast growing Agrochemicals manufacturing company. IIL has emerged as a front-line performer in India's crop care market and is all set to grow impressively.
Insecticides (India) — Q4 FY2020 Earnings Presentation on 6ix