Insecticides India reported higher net profit of Rs 8.3 crore versus Rs 6.8 crore year on year for the quarter ended December after the tax paid by the company lowered from Rs 2 crore to Rs 25 lakh. However, it was a sequentially weak quarter as agrochemicals sales dipped due to planned shutdown at company’s Dahej plant. Speaking to CNBC-TV18 post Q3 earnings, Rajesh Aggarwal, MD and CEO, Insecticides India said the Dahej plant which was shut during Diwali week is operational now. The small cap company expects to see a recovery in Q4 FY15.
Insecticides India will maintain capex of around Rs 20 crore in FY16.
Going ahead, Aggarwal believes the company will be able to recover Q3 losses in Q4. “The topline may fall but will improve bottomline in Q4,” he added.Below is verbatim transcript of the interview:
Q: What was the reason for this weakness in your revenues?
A: It’s the seasonal condition. The season was very bad because the monsoon was poor and maximum part of country like Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Andhra Pradesh suffered badly. So this was one big reason for the downfall.
Q: Will this sequential fall continue in Q4?
A: We will make recovery in Q4. In Q3 the Dahej plant was shutdown during Diwali week but we resumed production in the month of December and now we are starting certain new molecules also. Therefore, I believe that we should be able to make decent recovery in Q3 and should exceed the last year’s target of what we did in Q3.
Q: Do you have big capex plans?
A: No, broadly we will be finishing our major capex in this year and in the future, for the next two years the plans are to maintain capex of Rs 20 crore-25 crore per annum.
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