Q2 FY24 Revenue Jumps 32% QoQ to Rs. 811 Cr

Best Agrolife Limited (BAL) (BSE: 539660, NSE: BESTAGRO) today reported financial results for the quarter and half year ended September 30, 2023.

Consolidated Financial Results – Q2 & H1 FY24

Commenting on results, Mr. Vimal Kumar, Managing Director, Best Agrolife Limited, said, “Despite the challenging external environment, we have maintained a strong growth trajectory, with revenue from operations surging by 32% sequentially to reach Rs. 811 crores. This remarkable growth can be attributed to the success of our flagship products, including Ronfen, Tricolor, CTPR, Propique, Amito, and others. Notably, the second quarter is a pivotal season for Ronfen, and robust interest from farmers is contributing significantly to our growth. Our profit margins remain resilient, driven by an improved product mix. The consistent demand for our products has shielded us from pricing pressures that generic agrochemicals are grappling with.

I am also pleased at the ground-breaking achievement by our subsidiary, Seedlings India, which has been granted a 20-year patent for a revolutionary Synergistic Pesticidal Composition. This composition incorporates two insecticides and a fungicide, offering innovative solutions to the challenges faced in rice cultivation. We have additionally secured a vital 20-year patent for a revolutionary herbicidal composition that promises to enhance rice crop yields. This one-shot herbicide, set to launch in the next Kharif season under the brand name Orisulam, will further bolster our herbicide portfolio. During this quarter, we introduced our patented product, Tricolor, which has garnered a very encouraging response from the farming community.

Notwithstanding the industrys anticipated challenges in the forthcoming quarters, our differentiated product portfolio instils confidence in our ability to adhere to our guidance of achieving close to 25-30% growth with 18-20% EBITDA margins for FY24.”

Key Results Highlights:

Q2 FY24 Consolidated

• Revenue from operations for Q2 FY24 stood at Rs. 811 cr which grew by 32% QoQ and 16% on YoY basis compared to Rs. 612 cr in Q1 FY24 and Rs. 700 cr in Q2 FY23.

• EBITDA for the quarter came at Rs. 144 cr up 11% QoQ and de-grew 21% YoY compared to Rs. 130 cr in Q1 FY24 and Rs. 183 cr in Q2 FY23. The improvement in EBITDA for the quarter was on account of better product mix.

• EBITDA margin for the quarter came at 18% as compared to 21% in Q1 FY24 and 26% in Q2 FY23, down 300 bps QoQ and down 800 bps YoY.

• PAT for the quarter was at Rs. 95 cr, up 5% QoQ and down 27% YoY compared to Rs. 91 cr in Q1 FY24 and Rs. 130 cr in Q2 FY23.

• PAT margin for the quarter came at 12% as compared to 15% in Q1 FY24 and 19% in Q2 FY23, down 300 bps QoQ and down 700 bps YoY.

H1FY24 Consolidated

• Revenue from operations for H1 FY24 stood at Rs. 1,423 cr which grew by 22% on YoY basis compared to Rs. 1,164 cr in H1 FY23.

• EBITDA for H1 FY24 came at Rs. 274 cr up 10% YoY compared to Rs. 248 cr in H1 FY23. The improvement in EBITDA was driven by better product mix during H1FY24.

• EBITDA margin for H1 FY24 was at 19% as compared to 21% in H1 FY23, down 200 bps YoY.

• PAT for H1 FY24 came at Rs. 185 cr up 9% YoY compared to Rs. 170 cr in H1 FY23.

• PAT margin for H1 FY24 was at 13% as compared to 15% in H1 FY23, down 200 bps YoY.

Key Business highlights for Q2FY24:

• Products Launched during Q2 FY24:

• BAL Launched 1 Herbicide and 1 Fungicide product during the quarter

• Fungicide: Tricolor (Patented Combination of Trifloxystrobin 10% + Difenoconazole 12.5% + Sulphur 3% Sc)

• Herbicide: Azaro-Pyroxasulfone 85% WG

• Other Business Highlights

• Started new office in Hyderabad, a strategic move to build a pivotal position in the region

• BAL Inked a marketing agreement with Syngenta for the marketing of Pyroxosulfone 85% WG herbicide under the brand name Movondo

• BAL acquired 99% stake in Kashmir Chemicals (A partnership Firm, based at Jammu) and became the major partner, a strategic aim to expand manufacturing capacity .

• Approvals and Registration received:

• Seedlings India has been granted a patent for an invention entitled “Synergistic Granular Herbicidal Composition for Paddy” for a term of 20 years. The company plans to launch the “Orisulam” brand name herbicide as a one-shot solution in the upcoming Kharif season. The newly patented herbicidal composition is a powerful and effective solution for addressing the challenges of Monocot and Dicot weeds in paddy crops. It offers a comprehensive strategy to combat weeds such as Echinochloa crusgalli, Echinochloa colonum, Ludwigia parviflora, Cyperus rotundus, Cyperus difformis, Cyperus iria, Fimbristylis miliacae, Monochoria vaginalis, Leptochloa chinensis, Panicum repens, Chenopodium album, Commelina benghalensis, and Eclipta alba.

• Seedlings India has been granted a 20-year patent for a revolutionary invention of a Synergistic Pesticidal Composition that includes two insecticides and a fungicide to address some of the most pressing challenges in rice cultivation. The patented innovation offers a potent and efficient remedy for addressing the issues posed by the Brown Plant Hopper (BPH), Green Leaf Hopper, White Backed Plant, and various fungal diseases that have been persistent challenges for rice crops in India and worldwide.

• Capex Update:

• ​Capex for Strobilurin Chemistry Project, Backward Integration of Technical and Capacity enhancement for Formulation is going in full swing as per plans.

About Best Agrolife Limited

BAL is a research-based company focused on bringing world-class and cost-effective crop solutions in the form of novel agrochemical formulations to the agricultural industry for improving crop productivity. Currently, BAL has 7,000 MTPA and 30,000 MTPA technical and formulation manufacturing capacity respectively through three of its manufacturing plants in Gajaraula, Greater Noida, and Jammu & Kashmir. It boasts to have more than 5200 distributors in lndia and it retains an unrivalled portfolio of 400+ formulations and more than 100+ technical manufacturing licenses.