KILPEST INDIA LTD - Q2 FY 21 RESULTS REVIEW

 

KILPEST INDIA LTD

Q2 FY 21 RESULTS REVIEW

DT 14 11 20

 

COMPANY OVERVIEW

 

Kilpest India Ltd is one of India's leading Agri based companies. Kilpest is an ISO certified company and its products include Crop Protection Products and Public Health Products, Bio products, Micro-Nutrients and Mix fertilizers.

 

The company's management is now shifting its focus to 'Biotechnology', keeping in view the hazardous effects of chemical pesticides. Since Biotechnology has been described as a "Sunrise sector" by Government of India, the company is now on its adventurous journey towards exploring potentials of Biotechnology in the field of Organic Agriculture, Public Health, Nutraceuticals, industrial enzymes etc.

Kilpest now operates in two major verticals of agrochemicals and diagnostic kits.  The agriculture segment focuses on crop-protection products, both chemical-based & biological (chemical free). The diagnostic kits segment focuses on molecular diagnostics, nutrigenomics and personalized medicine.

MANAGEMENT

R K Dubey            Chairman & Managing Director

D K Dubey           Whole Time Director

N K Dubey           Whole Time Director

 

QUARTERLY RESULTS

Kilpest India (in Rs. Cr.)	Sep '20		Jun '20		Mar '20		Dec '19		Sep '19		YOY		QOQ
Net Sales	112		53		7		7		10		1065		112
FINAL NPT		52.4		23.8		2.0		1.5		2.0		2493		120
Equityl		7.51		7.51		7.51		7.51		7.51		0		0
Basic EPS		79.6		36		3.0		2.3		3		2552		120
Consumption of Raw Materials	18.49		11		2.59		3.37		4.35		325.06		68.09
Increase/Decrease in Stocks	1.05		-0.38		0.55		-0.46		0.72		45.83		-376.32
Employees Cost	1.52		1.43		0.5		0.86		0.77		97.4		6.29
Depreciation	0.13		0.15		0.09		0.15		0.15		-13.33		-13.33
Other Expenses	11.32		4.39		0.72		0.76		1.39		714.39		157.86
P/L Before Other Inc., Int., Excpt. Items & Tax	79.77		36.29		2.29		2.19		2.26		3429.65		119.81
Other Income	0.08		0.04		0.98		0.05		0.56		-85.71		100
P/L Before Int., Excpt. Items & Tax	79.86		36.33		3.26		2.24		2.82		2731.91		119.82
Interest	0.08		0.07		0.15		0.05		0.04		100		14.29
P/L Before Tax	79.77		36.26		3.12		2.19		2.78		2769.42		119.99
Tax	20.04		9.07		0.84		0.45		0.53		3681.13		120.95
Net Profit/(Loss) For the Period	59.73		27.2		2.28		1.74		2.25		2554.67		119.6
Minority Interest	-7.36		-3.39		-0.27		-0.22		-0.23		3100		117.11

 

SEGMENT RESULTS

The Company's Agrochemical Business is seasonal in nature and the performance can be impacted by weather conditions and cropping pattern.

The Company has two identified Reportable Business Segments namely Agrochemical and Molecular Diagnostic Kits (Health Care Sector)

SEGMENT RESULTS
	Q2FY21	Q1FY21	Q2FY20
REVENUE
AGROCHEMICALS	6.53	3.51	6.39
DIAGNOSTIC KITS	107.42	50.2	3.8
TOTAL REVENUE	113.95	53.72	10.19
PBIT
AGROCHEMICALS	1.48	0.29	0.52
DIAGNOSTIC KITS	78.37	36.04	2.31
TOTAL PBIT	79.86	36.33	2.82
PBT
AGROCHEMICALS	0.08	0.07	0.04
DIAGNOSTIC KITS79.69		36.19	2.74
PBT	79.77	36.26	2.78

 

CASH FLOW	HY1 FY21	HY1FY20
N.C.F.OPTG	73.15	7.04
N.C.F.INVSTING	-0.93	-0.64
N.C.F.FINANCIN	-0.90	-0.81
C&CE ON 30THSEP	80.70	9.38

 

MP  382.00  

PE   1.20      

VOLUMES      BSE ONLY     30000

52 Wk L/H 54       517

Annual RESULTS	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	28.00	23	23	16	17
Net Profit	7.00	5	3	1	0
Other Income	1.00	0	0	0	0
Total Income	30.00	24	23	16	17
Total Expenditure	20.00	16	18	14	16
EBIT	10.00	7	5	2	1
Interest	0.00	0	0	0	0
Tax	2.00	1	1	0	0

 

CASH FLOWS	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Operating Activities	7.00	3	1	0	0
Investing Activities	0.00	0	-1	0	0
Financing Activities	0.00	-1	0	0	0
Others	0.00	0	0	0	0
Net Cash Flow	7.00	1	1	0	0

 

Share Holding Pattern in (%)
Standalone	43983.00	Mar-20	Dec-19	Sep-19
Promoters	38.19	38.19	37.88	37.87
Pledged	0.00	0	0	0
FII/FPI	0.00	0	0	0
Total DII	12.80	13.74	14.59	14.55
Fin.Insts	0.00	0	0.1	0
Insurance Co	0.00	0	0	0
MF	0.00	0	0	0
Others DIIs	12.80	13.74	14.49	14.55
Others	49.01	48.07	47.53	47.59
Total	100.00	100	100	100.01

 

ACTION IN KILPEST

BUYERS ONLY ON SOME DAYS

SELLERS ONLY SOME DAYS

3B Blackbio Biotech, a subsidiary of Kilpest India (CMP: Rs 425, Mcap: Rs 319 crore) had been approved by ICMR (Indian Council for Medical Research) to produce Real Time PCR (polymer chain reaction) detection kits for Covid-19 in April 2020. After this approval, the company was able to bag many orders for supply of test kits which was the main catalyst for its bumper revenue growth.

Medical diagnostic segment seeing a huge opportunity

Various coronavirus charts indicate rising number of cases and a parallel uptick in tests. The Covid situation is unlikely to abate in a hurry. Kilpest produces RTPCR kits, a technology which has given the best test results. Given the high accuracy, these kits may be required even after the disease peaks out and even after the vaccines are launched. This situation may last for many more quarters and hence the opportunities created by Covid are quite large for a company such as Kilpest.

Exports could bring added revenue

Due to a restriction on the export of RTPCR kits the company was unable to tap global customers. However, the government has now relaxed export restrictions. Kilpest has already received approvals for the US and UK markets. It has a capacity to produce around 1 lakh kits per day and even after fulfilling government orders, it will have spare capacity for exports.

Key concerns

Threat from larger players

There are threats of competition from other PCR testing companies and new, lower-cost and high accuracy technologies. Given high margins and huge demand, this segment is under the scanner of major players who can produce at better economies of scale and capture the market rapidly. There are very few entry barriers in this business.