OPM was lower by 310 bps to 15.8% owing to higher input prices – on going disruption in China. Further, higher competitive intensity in select products both in India and internationally exerted pressure on the margins and profitability. OP as a result fell 4% to Rs 118.65 crore.

Other income was down by 24% to Rs 6.77 crore. Interest costs was up by 116% to Rs 1.88 crore and depreciation was higher by 56% to Rs 18.63 crore. PBT stood at Rs 104.91 crore, down by 12%. After providing total tax of Rs 25.19 crore and loss of MI of Rs 91 lakh, consolidated PAT for the September 19 quarter stood at Rs 80.63 crore, down by 5% YoY.

Performance for 6 months ended September 19

Net sales for 6 months ended September 19 stood at Rs 1371.93 crore, up by 12% YoY. OPM was lower by 120 bps to 15.6% resulting in rise in the OP by 3% to Rs 213.43 crore. Other income was up by 7% to Rs 14.75 crore. Interest cost was higher by 95% to Rs 3.45 crore and depreciation increased 40% and stood at Rs 32.88 crore which thus resulted in a 2% decrease in PBT to Rs 191.85 crore. After paying total tax of Rs 44.56 crore and loss of MI of Rs 1.1 crore, consolidated PAT for the 6 months ended September 19 stood at Rs 148.39 crore, up by 6% YoY.

Announcing the results, Mr. Sanjiv Lal, Managing Director and CEO, said,

'We are pleased to report that we have delivered an improved performance, on the back of strong growth of our international business. Domestic business delivered by overcoming the challenge of delayed monsoon. We are satisfied that our investment in growth amidst a scenario of raw material challenges and margin pressure has yielded positive result with growth in revenue of over 77%. Our capex program is also progressing well. The capacity expansion at Dahej is progressing and is on schedule. With overall monsoon rainfall being well above average and good availability of water in reservoirs accompanied with positive farmer sentiments, Rabi outlook looks promising."

Key developments during the quarter

• Witnessed successful launch of Paddy crop products - zygant and Ayaan along with Cameo and Trimbo

• Capacity expansion of the first phase of Metribuzin which was around 500 tonne per annum has been completed and production has been initiated. The second phase comprising an additional 500 tonne per annum is on track and expected to be up and running in December 2019

• lnternational Crop Protection chemical business grew by 31%

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