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Insecticides (India) Ltd on Monday (November 11) reported a 15.6% year-on-year (YoY) increase in net profit at ₹61.5 crore for the second quarter that ended September 30, 2024.
In the corresponding quarter of the previous fiscal, Insecticides (India) posted a net profit of ₹53.2 crore, the company said in a regulatory filing. The company's revenue from operations dipped 9.9% to ₹627 crore as against ₹696 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA was up 9.2% to ₹89.4 crore in the second quarter of this fiscal over ₹81.9 crore in the corresponding period in the previous fiscal.
EBITDA margin stood at 14.3% in the reporting quarter as compared to 11.8% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
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In Q2 FY25, Insecticides India reported an 11% growth in its premium products segment, with its flagship offerings, Focus Maharatna and Maharatna, now accounting for 68% of total B2C sales, an increase from 65% in Q2 FY24.
Despite industry challenges, including unpredictable weather patterns and extended rainfall that delayed the spraying season, IIL achieved a 7% growth in B2C revenue.
Gross profit margins improved significantly by 670 basis points, reaching 32%, due to the company’s focus on premium products and efficient cost management in procurement.
Additionally, Insecticides India demonstrated a marked improvement in its working capital cycle, reducing it to 102 days from 151 days as of March 2024. During the quarter, the company also completed a buyback of fully paid-up equity shares totalling ₹50 crore.
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Rajesh Aggarwal, MD of Insecticides (India) Ltd said, "Our focus will remain on driving higher growth in premium products, underpinned by New Product Launches, more extensive demand generation and brand-building initiatives.
During the quarter, we observed firming up of raw material prices although excessive and continued rainfall resulted in lower pest infestation. The farmers delayed their spraying schedule, which adversely impacted revenue growth for the company."
The results came after the close of the market hours. Shares of Insecticides (India) Ltd ended at ₹838.80, down by ₹53.60, or 6.01% on the BSE.
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