NEW DELHI, 4 June 2023: Best Agrolife Limited (BAL) (BSE: 539660, NSE: BESTAGRO) announced its financial results for the Quarter and Year ended 31 March 2023, showcasing impressive growth and performance.
The company reported a strong revenue from operations of INR 1746 crore, marking a robust growth of 44 percent over the previous fiscal year.
Mr. Vimal Alawadhi, Managing Director of Best Agrolife Limited, expressed his delight at the positive results, attributing them to the company's focus on introducing innovative products to meet the needs of farmers. BAL's introduction of specialized combination products, including the patented novel combination Ronfen in FY23, drove the significant growth during the year. Additionally, the company expanded its margins by 427 basis points (bps) through a change in product mix.
In a testament to its success, Best Agrolife's Board recommended a dividend of 30 percent (i.e., INR 3 per share), representing a 50 percent increase compared to the previous year.
However, Q4FY23 presented challenges for the industry as a whole due to higher channel inventory and excess supply from China at lower prices. Best Agrolife was also affected by these factors since its branded product portfolio focuses more on the kharif season.
To address this, the company aims to introduce more branded products that cater to the Rabi season. This strategy will enhance the breadth of the portfolio and create a better balance, as the current portfolio is skewed towards the kharif season.
With a commitment to "Make in India," Best Agrolife has initiated a capital expenditure plan to enhance its technical capabilities and improve backward integration. These efforts aim to reduce dependence on China and enhance the company's cost structure.
Looking ahead, Best Agrolife has an exciting product pipeline ready for launch in FY24. The company plans to introduce more patented and specialized combination products, which will sustain its strong growth momentum and further improve margins.
Key Results Highlights for FY23 Consolidated:
- Revenue from operations grew by 44 percent YoY to INR 1746 crore.
- Gross margin expanded from 19 percent in FY22 to 28 percent, an increase of 963 bps YoY.
- EBITDA for the year reached Rs. 314 crore, representing an 89 percent YoY growth compared to INR 166 crore in FY22.
- EBITDA margin increased to 18 percent from 14 percent in FY22, a growth of 427 bps YoY.
- Profit After Tax (PAT) for the year stood at Rs. 192 crore, an 83 percent YoY increase. PAT margin was at 11 percent compared to 9 percent in FY22.
Key Business Highlights for FY23:
- Launch of Ronfen, a proprietary ternary insecticidal combination that controls all sucking pests in various crops, with an addressable market of approximately INR 8000 crore.
- Introduction of CITIGEN and VISTARA, CTPR-based formulations, becoming the first company to launch them in the domestic market. These formulations target a domestic market of around INR 2800 crore.
- Launch of niche combination products, including Tambo, Axeman, Warden, and Reveal.
- Receipt of patent for a fungicidal composition of Cyazofamid, Dimethomorph, and Difenoconazole, offering effective crop solutions against Late Blight and Downy Mildew in tomato and grape crops, respectively. The market size for this composition is estimated to be INR 350 crore.
- Registration for indigenous manufacturing of Pyroxasulfone technical, reducing dependence on other countries for this product.
