ASTEC LIFE SCIENCES
Q2 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.
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
QUARTERLY RESULTS
|
ASTEC LIFE SCIENCES LTD |
Q2 FY 21 |
Q1 FY 21 |
Q2 FY20 |
YOY |
QOQ |
|
TOTAL INCOME |
156.85 |
113.2 |
142.04 |
10.43 |
38.56 |
|
TOTAL EXPENSES |
132.97 |
91.46 |
134.21 |
-0.92 |
45.39 |
|
P B T |
23.88 |
21.74 |
7.83 |
204.98 |
9.84 |
|
NET PROFIT |
17.85 |
16.19 |
5.29 |
237.43 |
10.25 |
|
EPS-BASIC |
9.12 |
8.27 |
2.7 |
237.78 |
10.28 |
|
EPS-DILUTED |
9.11 |
8.26 |
2.7 |
237.41 |
10.29 |
|
CASH FLOWS |
HY1 FY21 |
HY1 FY 20 |
|
NET CF FROM OPTG |
18.85 |
-1.18 |
|
NET CF FROM INVESTING |
-14.72 |
-19.68 |
|
NET CF FROM FINANCING |
-4.13 |
21.01 |
|
C&CE AT END |
0.27 |
0.37 |
MP : 1142.55
VOLUME 461177
52 Wk L/H 306 1365
Historical Prices
PRICE Current Price %Gain / Loss
3 YR BEF 508.50 1159.00 127.93
2YR BEF 537.90 1159.00 115.47
1YR BEF 365.00 1159.00 217.53
3 M BEF 1009.00 1159.00 14.87
ANNUAL RESULTS
|
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
TECHNICAL RATING
Very Bullish
Valuation
Market Cap (Rs Cr.) 2,236.63
P/E 34.54
Dividend (%) 15.00
Industry P/E 45.21
EPS (TTM) 33.08
P/C 25.42
Price/Book 9.10
Dividend Yield.(%) 0.13
Face Value (RS) 10.00
|
Share Holding Pattern in (%) |
||||
|
Standalone |
Sep-20 |
Jun-20 |
Mar-20 |
Dec-19 |
|
Promoters |
69.96 |
72.3 |
71.33 |
69.55 |
|
Pledged |
0 |
0 |
0 |
0 |
|
FII/FPI |
0.56 |
0.55 |
0.84 |
0.78 |
|
Total DII |
7.04 |
7.36 |
7.71 |
7.82 |
|
Fin.Insts |
0 |
0.21 |
0.25 |
0.12 |
|
Insurance Co |
0 |
0 |
0 |
0 |
|
MF |
0.26 |
0.08 |
0.26 |
2.04 |
|
Others DIIs |
6.78 |
7.07 |
7.2 |
5.66 |
|
Others |
22.44 |
19.78 |
20.12 |
21.84 |
|
Total |
100 |
99.99 |
100 |
99.99 |
STRENGTHS
- Rising Net Cash Flow and Cash from Operating activity
- Company with high TTM EPS Growth
- Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
- Company with Low Debt
- Company able to generate Net Cash - Improving Net Cash Flow for last 2 years
- Annual Net Profits improving for last 2 years
- Book Value per share Improving for last 2 years
- Company with Zero Promoter Pledge
- FII / FPI or Institutions increasing their shareholding
- Recent Results : Growth in Operating Profit with increase in operating margins (YoY)
- Promoter holding decreased by more than -2% QoQ
- Inefficient use of capital to generate profits - RoCE declining in the last 2 years
- Promoter decreasing their shareholding
OPPORTUNITIES
- Companies with current TTM PE Ratio less than 3 Year, 5 Year and 10 Year PE
- Positive Breakout Second Resistance ( LTP > R2)
- Negative to Positive growth in Sales and Profit with Strong Price momentum
- Highest Recovery from 52 Week Low
- RSI indicating price strength
- High Volume, High Gain
THREATS
· Increasing Trend in Non-Core Income
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 managed the circumstances well to return a strong performance in Q3 and Q4 of 2019-20.
Company's plants were shut down in the last week of March 2020 due to the nationwide lockdown. However, through proactive actions by its team, it resumed production in our plants in a phase-wise manner from April 10, 2020.
Company’s contract manufacturing business also performed well and there is strong demand for our products.
Cmmissioned two new products for multinationals.
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 proposes to introduce two new products this year.
Continues its programme of backward integration to reduce our dependence on China.
Research & Development (R&D) team continues to develop new products at a healthy pace.
Company has completed the design of our new state-of-the-art Research & Development (R&D) Centre, which will result in a quantum jump in our R&D capabilities. Likely to commission this facility by the end of the next year.
REVIEW OF OPERATIONS / STATE OF AFFAIRS OF THE COMPANY:
Astec manufactures agrochemical active ingredients (technical), bulk drugs and formulations, intermediate products and sells its products in India as well as exports them to approximately 24 countries.
It 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, Company will continue to focus on both the markets and develop manufacturing capabilities which should cater to the key changes emerging in agrochemical industry.
Company will keep on working towards adding new multinational customers for ensuring sustained business growth
Company had the following 3 (three) subsidiaries during the Financial Year (F.Y.) 2019-20:-
(i) Behram Chemicals Private Limited:During the Financial Year ended 31st March, 2020, Behram Chemicals Private Limited reported Profit Before Tax of ` 8.44 Lakh, as compared to Profit Before Tax of ` 10.36 Lakh during the previous Financial Year 2018-19.
(ii) Comercializadora Agricola Agroastrachem Cia Ltda (Bogota, Columbia):For the year ended 31st March, 2020, Comercializadora Agricola Agroastrachem Cia Ltda reported Profit/(Loss) Before Tax of ` Nil, as compared to Profit/(Loss) Before Tax of ` (0.05) Lakh reported during the previous year ended 31st March, 2019.
(iii) Astec Europe Sprl (Belgium, Europe):During the year ended 31st March, 2020, Astec Europe Sprl reported Profit/(Loss) Before Tax of ` (1.09) Lakh, as compared to Profit /(Loss) Before Tax of ` 0.75 Lakh reported during the previous year ended 31st March, 2019.
Final Dividend of 15% (Fifteen per cent) on the Equity Share Capital of your 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 the 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 your Company to withdraw the Scheme of Amalgamation of your Company with Godrej Agrovet Limited (which was filed during the Financial Year 2018-19), based on interaction with multiple stakeholders.
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