ASTEC LIFE SCIENCES ltd - Q1 FY 21 RESULTS REVIEW - Dt 17 08 2020

 

ASTEC LIFE SCIENCES

Q1 FY 21 RESULTS REVIEW

 

Management

    Nadir B GodreJ  : Chairman

    Ashok V Hiremath  :  Managing Director

 

COMPANY OVERVIEW

Astec Lifesciences Ltd has over two decades of experience in the chemical industry.

 

The company employs highly qualified and trained personnel to monitor and maintain its manufacturing activities as well as process development work. 

 

A strong R&D focus has enabled the company to introduce a number of unique products.Their product range includes Tebuconazole, Hexaconazole, Propiconazole, Metalaxyl,Pentanediol, Dicap ,Fluoro & phenacyl chloride

 

Astec Lifesciences (in Rs. Cr.)	Jun '20	Mar '20	Dec '19	Sep '19	Jun '19	YOY	QOQ
Net Sales	111.94	180.57	124.83	140.21	76.99	45.4	-38.01
Consumption of Raw Materials	74.22	101.17	90.15	85.18	56.93	30.37	-26.64
Increase/Decrease in Stocks	-12.16	10.66	-10.02	9.87	-5.78	110.38	-214.07
Employees Cost	8.5	8.6	7.47	7.54	6.32	34.49	-1.16
Depreciation	6.26	6.15	5.78	5.68	5.56	12.59	1.79
Other Expenses	13.11	17.07	16.4	22.37	13.13	-0.15	-23.2
P/L Before Other Inc., Int., Excpt. Items & Tax	22.01	36.54	15.06	9.58	0.83	2551.81	-39.76
Other Income	1.25	5.24	3.93	1.82	0.94	32.98	-76.15
P/L Before Int., Excpt. Items & Tax	23.27	41.78	18.99	11.41	1.77	1214.69	-44.3
Interest	1.53	2.15	3.38	3.58	3.49	-56.16	-28.84
P/L Before Tax	21.74	39.63	15.61	7.83	-1.72	-1363.95	-45.14
Tax	5.55	8.45	3.44	2.54	-0.61	-1009.84	-34.32
Net P/L After M.I & Associates	16.18	31.18	12.16	5.28	-1.11	1357.66	-48.11
Equity Share Capital	19.57	19.57	19.57	19.56	19.56	0.05	0
Basic EPS FV 10	8.27	15.94	6.22	2.7	-0.57	-1550.88	-48.12
MP	956
PE	28.89964
VOLUME	105000
52 Wk L/H	305	1119.5

 

Annual	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	522.61	430.9	367.58	298.67	232.98
Other Income	11.93	11.16	8.11	2.86	7.22
Total Income	534.54	442.06	375.69	301.54	240.19
Total Expenditure	460.6	373.77	309.32	260.55	214.96
EBIT	73.95	68.29	66.37	40.98	25.24
Interest	12.59	12.38	10.66	12.24	12.81
Tax	13.83	20.14	20.67	9.56	7.36
Net Profit	47.53	35.77	35.04	19.18	5

 

CHART

HAS GONE UP ONLY FROM APRIL 20

 

 

Valuation             

Market Cap (Rs Cr.)          1,871.59

P/E             28.87

Book Value (Rs)                 125.88

Dividend (%)             15

Industry P/E               46.86

EPS (TTM)                   33.08

P/C            21.25

Price/Book                 7.59

Dividend Yield.(%)            0.16

Face Value (RS)                  10

Deliverables (%)                54.18

Historical Prices
	1 YR BEF	Current Price	%Gain / Loss
Open Price	364	1002.9	175.52
	2 YR BEF
Open Price	617.35	1002.9	62.45
	3 YR BEF
Open Price	570	1002.9	75.95
	3 MONTHS
Open Price	571.75	1002.9	75.41

 

Share Holding Pattern in (%)
Standalone	Jun-20	Mar-20	Dec-19	Sep-19
Promoters	72.3	71.33	69.55	69.14
Pledged	0	0	0	0
FII/FPI	0.55	0.84	0.78	0.73
Total DII	7.36	7.71	7.82	8.83
Fin.Insts	0.21	0.25	0.12	0.06
Insurance Co	0	0	0	0
MF	0.08	0.26	2.04	2.04
Others DIIs	7.07	7.2	5.66	6.73
Others	19.78	20.12	21.84	21.3
Total	99.99	100	99.99	100

 

ANNUAL REPORT 2019-20

Financial Year 2019-20 represented another year of robust growth for Astec.

Total Revenues grew by 20.8% from `44,200 Lakh during 2018-19 to `53,415 Lakh during 2019-20.

Exports increased by 21.6%

Profit After Tax (PAT) improved by 33.0% from `3,569 Lakh during 2018-19 to `4,747 Lakh during 2019-20.

The Company was also able to reduce its borrowings from `17,567 Lakh to `9,871 Lakh.

Thereby, the debt-equity ratio reduced from 0.87 to 0.40.

Return on Capital Employed (ROCE) was 19.2% and Return on Equity (ROE) was 19.3%.

The consistent performance resulted in a 4-year Compounded Annual Growth Rate (CAGR) of 19.9% in revenues and 36.4% in Profit After Tax (PAT).

All the above indicators demonstrate the strong financial health of the Company.

Last  year  was  characterised  by  continuing  disruptions  in  supply  chain  from  China  followed  by  the  outbreak  of  COVID in China. This resulted in challenges and opportunities and company team managed the circumstances well to return a strong performance in Q3 and Q4 of 2019-20.

Plants were shut down in the last week of March 2020 due to the nationwide lockdown. However, through proactive actions by their team, Company resumed production in the plants in a phase-wise manner from April 10, 2020. 

The Company’s contract manufacturing business also performed well and company saw strong demand for our products.

Company commissioned two new products for multinationals.

Company has several projects in the pipeline which will be rolled out over the next few years.

Construction  of  a  new  herbicide  plant  is  expected  to  be  completed  by  the  end  of  the  year  and  company  proposes  to  introduce two new products this year.

Company will also continue its programme of backward integration to reduce its dependence on China.

Its Research & Development (R&D) team continues to develop new products at a healthy pace.

It has completed the design of a new state-of-the-art Research & Development (R&D) Centre, which will result in a quantum jump in its R&D capabilities. It hopes to commission this facility by the end of the next year.

REVIEW OF OPERATIONS / STATE OF AFFAIRS OF THE COMPANY:

The Company manufactures agrochemical active ingredients (technical), bulk and formulations, intermediate products and sells its products in India as well as exports them to approximately 24 countries.

The Company continued to maintain a strong performance for the Financial Year 2019-20, with Revenue from Operations of the business growing by 21.19% and Profit Before Tax (PBT) increasing to ` 6,127.42 Lakh from ` 5,579.33 Lakh for the previous Financial Year 2018-19.

During the Financial Year 2019-20, revenue growth was supported both by the export business and the domestic business.

Going forward, your Company will continue to focus on both the markets and develop manufacturing capabilities which should cater to the key changes emerging in agrochemical industry.

The Company will keep on working towards adding new multinational customers for ensuring sustained business growth

The Company had the following 3 (three) subsidiaries during the Financial Year (F.Y.) 2019-20:-

(i) Behram Chemicals Private Limited:

(ii) Comercializadora Agricola Agroastrachem Cia Ltda (Bogota, Columbia):

(iii) Astec Europe Sprl (Belgium, Europe):

Final Dividend of 15% (Fifteen per cent) on the Equity Share Capital of the Company, i.e., `1.50 (Rupee One and Paise Fifty Only) per Equity Share of Face Value of `10/- (Rupees Ten Only)

HOLDING COMPANY:

Godrej  Agrovet  is,  inter  alia,  engaged  in  the  business  of  manufacture  and  marketing  of  Animal  Feeds,  Agricultural  Inputs and Oil Palm and is the Holding Company of your Company. The shareholding of Godrej Agrovet Limited in your Company as on 31st March, 2020 was 62.37% [i.e., 1,22,04,016 (One Crore Twenty Two Lakh Four Thousand Sixteen)

Godrej Agrovet Limited, in turn, is a subsidiary of Godrej Industries Limited.

Godrej Industries Limited is, thus, the Ultimate Holding Company of the  Company.

During the Financial Year 2019-20, it has been decided by the Board of Directors of the Company to withdraw the  Scheme  of  Amalgamation  of  the Company  with  Godrej  Agrovet  Limited  (which  was  filed  during  the  Financial Year 2018-19), based on interaction with multiple stakeholders.