Astec LifeSciences stock hits fresh 52-week high after Q3 PAT jumps 250% yoy to Rs24.8cr

27 Jan 2022 , 10:15 AM

Astec Lifesciences Limited stock hits a new all-time high on Thursday after the company reported its financial performance for the Quarter ended December 31, 2021.

For the third quarter ended December 31, 2021, the company reported a consolidated total income of Rs175.3cr, an increase of 47.0% yoy from Rs119.3cr in Q3FY21. 

Consolidated EBITDA and Profit before tax increased to Rs44.8cr (up 137.7%) and Rs33.2cr (194.5%) respectively, as compared to Rs18.9cr and Rs11.3cr during the same quarter last year. Net Profit After Tax (PAT) rose 250.4% yoy to Rs24.8cr in Q3FY22 from Rs7.1cr in Q3FY21.

For the first nine months ended December 31, 2021, the company reported a consolidated total income of Rs408.2cr, an increase of 4.9% yoy. Consolidated EBITDA and profit before tax also increased to Rs92.3cr and Rs62.8cr respectively, a year-over-year increase of 15.7% and 10.4%. PAT rose 13.9% yoy to Rs46.8cr from Rs41.1cr.

The company stock was bullish today despite the weak markets. It touched a fresh 52-week high of Rs1,820 per share during early trade on Thursday. At around 10.20 am, Astec Lifesciences Ltd was trading at Rs1,778.05 per share up by Rs45.8 or 2.64% from its previous closing of Rs1,732.25 per share on the BSE.

Q3 FY22 Business highlights

• The robust growth in Q3 was driven mainly by higher sales price realizations and favourable product mix. Consequently, gross margin also improved to 46.5% in Q3FY22 from 35.3% in Q3FY21 while EBITDA margin improved to 25.9% in Q3FY22 from 16.3% in Q3FY21.
• In terms of geography, company recorded growth in income across our key markets. Exports accounted for 64.0% of the total income and grew by 38.6% year-over-year. Domestic sale was 36% of total sales and grew by 73.4% year-over-year.
• Commercial production at our new herbicide plant started in August 2021. The plant is operating satisfactorily and we expect to see good pickup in CRAMS business in Q4.
• We are on track to introduce 4 new products in CMO and 1 in enterprise segment in current financial year.
• The work on new R&D centre had commenced in Q3FY22 and we expect it to be operational by Q3FY23.

9MFY22 Business highlights

• The growth in first nine months of FY22 was driven by combination of operational efficiencies, moderate volume growth and higher sales price realisations.
• Exports segment sales recorded 6.6% growth while domestic segment recorded 4.8% sales growth as compared to same period last year. The share of exports in total income remained largely unchanged at 48.9 % in 9M FY22 as compared to last year.
• Gross margin improved to 45.0% in 9M FY22 from 38.2% in 9M FY21 supported by favourable product mix and backward integration benefits in addition to higher realisations.
• However, increase in EBITDA margin was limited due to higher fixed overheads on account of commissioning of herbicide plant and normalization of business activity over the previous year.

Ashok Hiremath, Managing Director, Astec LifeSciences Limited, said: “I am pleased to share with you the financials of Astec LifeSciences Limited for the quarter ended December 31, 2021. Consolidated total income was Rs175.3cr, registering a growth of 47.0% yoy. Consolidated profit before tax was Rs33.2cr, registering a growth of 194.5% yoy.

It was one of our best quarterly performances, supported by favorable product mix, strategic sourcing and good price realizations in both exports as well as domestic markets. Margins improved on the back of improved efficiencies and the reasons stated above.”