Other income rose to Rs 1.73 crore compared to Rs 0.05 crore. Interest cost was up 8% to Rs 13.7 crore. Finance cost for the quarter ended Mar20 includes exchange loss on foreign currency working capital/term loans of Rs. 1.65 crore compared to gain of Rs 25 lakh in quarter ended Mar19. Depreciation fell 10% to Rs 20.94 crore. PBT was down 22% to Rs 37.72 crore. Effective rate of taxes was up 400 bps to 35%. PAT reported was down 27% to Rs 24.47 crore. 

Segment wise, Pharmaceutical Segment revenue stood at Rs 226.35 crore, down by 13% YoY and accounted for 60% of sales. PBIT from the same was down by 15% to Rs 33.15 crore and accounted for 54% of total PBIT with PBIT margin at 14.6% as compared to 15.1% for Mar19 quarter.  

For the quarter, sales from the Crop Protection Segment stood at Rs 152.64 crore down by 23% YoY and accounted for 40% of sales. PBIT from the same was down 8% to Rs 27.81 crore and accounted for 46% of total PBIT. PBIT margins stood at 18.2% as compared to 15.2% for Mar19 quarter.  

The Government of India in order to contain the spread of the COVID-19 pandemic announced a Nationwide Lockdown on 25th March 2020. Accordingly, the group took a safe shut down of operations at all its manufacturing facilities. Being a part of the essential services industry, after getting the necessary permissions from the respective authorities, the company restarted operations from 5th April 2020. 

The group is in the business of manufacturing and supply of Pharmaceuticals ft Crop Protection products which is categorized under essential services. The group therefore is well positioned to fulfill its obligations and existing contracts/arrangements and believes thus the impact of the pandemic may not be cause significant material impact.

Performance for the year ended Mar20 

For year ended Mar20, net sales remained fell 5% to Rs 1507.26 crore. The company operating margins decreased 700 bps to 18.1%. As a result operating profits fell 8% to Rs 273.15 crore.  

Other income rose 64% to Rs 3.7 crore. Interest cost was down 10% to Rs 52.42 crore. Finance cost for the year ended Mar20 includes exchange loss on foreign currency working capital/term loans of Rs. 3.07 crore compared to loss of Rs 7.35 crore in year ended Mar19. Depreciation fell 11% to Rs 82.46 crore. PBT before EO was down 5% to Rs 141.97 crore. The company had EO expense of Rs 15.4 crore compared to nil in the corresponding previous year period. Exceptional item during the current period comprises customs duty Rs. 13.39 crore on past imports of raw materials at an Export Oriented Unit of the Holding Company and interest of Rs. 2.01 crore thereon, paid during the quarter on directions of the Customs authority. PBT after EO was down 15% to Rs 126.57 crore. 

Effective tax rate was up 200 bps to 33%. PAT reported was down 18% to Rs 84.43 crore. 

For the 12 months, sales from the Pharmaceutical segment stood at Rs 886.87 crore and accounted for 59% of sales. PBIT from the same was down by 1% to Rs 127.53 crore and accounted for 56% of total with PBIT margin at 14.4%.  

For the 12months, sales from the Crop Protection segment stood at Rs 620.39 crore and accounted for 41% of sales. PBIT from the same was down by 11% to Rs 99.65 crore and accounted for 44% of total with PBIT margin at 16.1%. 

The company has recommended Final Dividend for the Financial Year 2019-20 on Equity Share Capital @ 10% (Re 0.20 per equity share ) aggregating to dividend of 60% (Rs.1.20 per equity share) (Previous year 60% Rs. 1.20 per equity share). 

The scrip is currently trading at Rs 119