Insecticides India targets sales of Rs 700cr in FY12

Insecticides India's net profit for the fourth quarter ending March 31, 2011 dipped 4% to Rs 6.13 crore compared to Rs 6.41 crore in the same period a year ago. Its net sales in the March quarter rose by 20% (YoY) to Rs 83.46 crore from Rs 69.70 crore.

The company has started two new units, one is in Udhampur and Jammu and the other one is at Dahej in Gujarat. Both these units are now in production and the company expects good increase in topline. Rajesh Agarwal, MD of Insecticides India in an interview with CNBC-TV18 said, "We are targeting an increase of about 40% in the topline this year. We see our sales going to Rs 700 crore in the year 2012." Below is the verbatim transcript of with Latha Venkatesh and Anuj Singhal of CNBC-TV18. Also watch the accompanying video. Q: Quarter on quarter this looks like it's a flat performance. Can you take us through the highlights of Q4? A: Our industry is a cyclical industry and last quarter generally is a weak quarter. If you compare it with last year, we have grown by about 20-25% in the last quarter. But, looking at it on a quarter on quarter basis Q2 is always the biggest quarter and Q3 follows it. In totality, last year we have done total sales of about Rs 478 crore with the EBITDA margins of about Rs 45 crore and PAT of about Rs 32 crore. Q: What kind of guidance can you give us for FY12 both in terms of topline and EPS guidance? A: This is a good year for us because we have started our two new units. One unit has already started manufacturing in Udhampur and Jammu and Kashmir. Second unit has also started manufacturing formulations in the state of Gujarat at Dahej. So both these units are now in production and we expect good increase in topline. We are targeting an increase of about 40% this year. We see our sales going to Rs 700 crore in the year 2012. We also see our PAT numbers going up. We have a target increase of about 1% in the PAT margins in terms of percentage. So, broadly we will be targeting Rs 50 crore worth of PAT margins for FY12. Also Read: HIL's licence to produce endosulfan cancelled Q: What are you expecting to do by way of inorganic expansions? You bought Monocil brand from Nocil in March. Can you disclose how much you paid for it at this stage and how it will add to sales, will there be more such acquisitions? A:  We will start manufacturing Monocrotophos Technical from our Dahej unit shortly. We should be in the production by July first week. We are just waiting for some approvals and final nitty-gritty are in stages. This will be supportive brand increasing our topline by about Rs 40-45 crore. It will also contribute a lot on our bottomline.I will not like to share the amount that we have spent at this moment. But, I can say that it has been very effective purchase by the company. It should contribute in a big way, not only in terms of sales growth for this brand but overall it should support the company in growing the sales.