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.
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