During the quarter, the loss was caused by price erosion and the company’s investments in brand building.

The company recorded revenue of Rs 135.39 crore, registering a de-growth of 46.67% as against Rs 253.9 crore in Q4 FY23, due to an unexpected seasonal failure, of Q3 and Q4 of FY24 as against normal seasonal conditions in same period last year, leading to lower-than-expected sales coupled with surge in sales returns.

During the quarter, EBITDA stood negatively at Rs 67 crore as against positive EBITDA of Rs 7 crore posted in corresponding quarter last year. EBITDA margin was negative at 49.6% in Q4 FY24 as compared to positive EBITDA margin of 2.8% posted in Q4 FY23.

On a full year basis, the company’s consolidated net profit declined 44.69% to Rs 106.26 crore despite of 7.29% rise in revenue from operations to Rs 1,873.31 crore in FY24 over FY23.

Meanwhile, the company’s board has declared a final dividend of Rs 3 per share for FY24.

Vimal Alawadhi, managing director of Best Agrolife, commented on the results, "Despite the many challenges faced during the year, for the full year FY24, our revenue grew by 7% on Y-o-Y basis. This growth was driven by our shift in business strategy from institutional sales to branded sales. This has resulted in the growth of our branded business by 85%. However, the EBITDA margins reduced to 12% in FY24, mainly because of the stress on the gross margin due to pricing pressures in the market, primarily caused by oversupply from China. Combination of weather factors, our shift towards branded products, and an expanding distributor network led to higher trade inventory.

Additionally, employee costs have gone up due to a shift in business strategy. The planned increase in employee cost is a strategic investment to strengthen our sales distribution network.

The company said that despite the high competition from imports, particularly pricing pressure from China and the challenges posed by the global economic climate, it has maintained good profit margins.

Best Agrolife is engaged in the manufacturing of agrochemical products. The company offers more than 70 formulations of insecticides, herbicides, fungicides, and plant growth regulators (PGRs) and retains one of the country's most comprehensive portfolios with 360+ formulations and more than 91 technical manufacturing licenses.