Insecticides India surges to all-time high on strong Q1 earnings show

The strong Q1 earnings also also tipped off a spike in trading volumes in the counter as nine lakh shares changed hands so far, significantly higher than the one-month daily traded average.

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Shares of Insecticides India flew 17 percent intraday to hit a record high of Rs 1,084.25 on August 28, a day after the company delivered healthy all-around earnings for the April-June quarter.

The company's net profit for the first quarter of FY25 surged 68 percent on year to Rs 49 crore, up from Rs 29 crore recorded in the same period last fiscal.

Revenue also grew 3 percent on year to Rs 657 crore backed by 18 percent growth in premium Products which now constitutes 60 percent of total B2C sales as compared to 57 percent in the base period. Total B2C revenue also rose 11 percent in the quarter gone by which offset weak B2B and exports sales that were adversely impacted by lower pricing and unfavorable market conditions.

In addition, premiumisation of products also helped the agrochem company expand its EBITDA margins by 380 basis points on year to 10.9 percent in Q1FY25 as compared to 7.1 percent in Q1FY24.

The company's performance in Q1 seems all the more remarkable when compared with the overall agrochemical industry which is currently reeling under the pressure of excess Chinese inventory and weak pricing.

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"We witnessed steady demand for our products across regions, leading to our optimism for FY25, with improved market conditions and stable input costs. As the strategic thrust remains on Premiumisation, we remain committed to gain significant market share in these product lines. We are gearing up to launch pathbreaking new products, with one product launched in Q1FY25," Rajesh Aggarwal, MD of Insecticides India said in an exchange filing.

"Our sturdy working capital management has seen inventory levels to Rs 698 crores as on 30 June 2024, an improvement over last year. Our focus in FY25 will remain on higher growth in Premium Products with more extensive demand generation and brand-building efforts. We also plan to continue follow disciplined approach towards margins and working capital," Aggarwal added.

At 11.21 am, shares of Insecticides India, were trading at Rs 1,031.40 on the NSE, despite coming slightly off its day's highs. The strong Q1 earnings also tipped off a spike in trading volumes in the counter as nine lakh shares changed hands so far, significantly higher than the one-month daily traded average of two lakh shares.

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