NACL Industries Q3 revenue surges 51% yoy to Rs404cr

31 Jan 2022 , 12:28 PM

NACL Industries Ltd stocks in focus after the company has announced its results for the quarter ended December 31, 2021.

Highlights of the Company Performance in Q3 2021-2022
Total income for the Quarter ended December 31, 2021 is Rs404.80cr, registering a growth of 51%, Earnings Before Interest, Depreciation and Tax (EBIDT) and Profit After Tax (PAT) for the Quarter ended December 31, 2021 stood at Rs35.65cr and Rs15.47cr respectively compared to Rs28.88cr and Rs9.10cr in the corresponding period of previous year.

Total income for the Nine months ended December 31, 2021 is Rs1180.95cr, registering a growth of 36%, Earnings Before Interest, Depreciation and Tax (EBIDT) and Profit After Tax (PAT) for the Nine months ended December 31, 2021 stood at Rs114.48cr and Rs55.02cr respectively compared to Rs92.85cr and Rs33.15cr in the corresponding period of previous year.

Key Updates on Q3 2021-2022

• For the quarter ending December’21, Exports business has almost doubled over the last year. Thrust on key account management has resulted in encouraging business from MNCs. Commercialization of new formulation source registrations generated more formulation business. Focus on trading opportunities improved technical trading business. Energy crisis in China led to shortage and increase in prices of RMs.
• The outlook for Q-4 looks positive with positive forecast for both technicals and formulations. However logistic issues and energy crisis in China might affect the performance to some extent.
• Domestic retail witnessed a growth of 24% over the corresponding quarter of last year, despite very challenging market conditions and reduced demand for agrochemicals on account of un- seasonal rains in AP, Telangana, TN, Maharashtra and East. In addition to this occurrence of new pests led to significant uprooting of chilli crop in AP, Telangana and Karnataka. We also witnessed significant reduction in Cumin acreage in Central India with a shift happening towards oil seeds. All the above factors created a very challenging market condition. However, we were able to maximize our business through opportunities in other parts of the country.
• Srikakulam & Ethakota Manufacturing units are being operated at optimum level meeting all safety and statutory requirements. A new insecticide production line is successfully commissioned and a fungicide production line capacity is enhanced to cater to the increasing demand. The company has been maintaining its operations following the prescribed safety protocols for the pandemic.
• Continuously working to build a strong pipeline of Intermediates & Technical products for Global and Indian market through development and registrations. Processes are being developed for manufacture of an import substitute intermediates for making Active Ingredients (Als).
• R&D Function is working on various Als and Formulations for overseas and Indian Customers.
• Construction activities at Dahej in Gujarat for greenfield project are progressing well and is as per schedule.
• The Board of Directors in their meeting held on January 28, 2022 approved an interim dividend of Rs0.15 per Equity Shares of Rs1 each.

Commenting on the performance Pavan Kumar, MD & CEO said, “Results for the third quarter ending 31st Dec 2021 reflect continued progress towards the company’s long-term goals. The Company returned to a steady growth path on both revenue and EBITDA and laid the foundation for sustainable transformation and progress.

The Company recorded sector-leading business growth in some segments despite challenging external conditions such as the pandemic, raw material supply constraints and increase costs, logistics challenges, etc. The Company’s projects are progressing well and the outlook for Q4 is positive.”

At around 12:26 PM, NACL Industries was trading at Rs89.05 apiece down by Rs6.15 or 6.46% on Sensex.