Insecticides India : Communication to shareholders as per Reg 30

CIN: L65991DLl996PLC083909

Registered Office: 401-402, Lusa Tower, Azadpur Commercial Complex, Delhi - 110033

Q2 & H1 FY23 - Earnings update

Revenue from Operations reported at Rs.5,822.09 Mn in Q2 FY23 and Rs.11,428.99 Mn for H1 FY23

EBITDA stands at Rs.684.54 Mn in Q2 FY23 and Rs.1,269.08 Mn for H1 FY23

PAT at Rs.448.33 Mn in Q2 FY23 and Rs.831.42 Mn for H1 FY23

Delhi, 7th Nov, 2022: Insecticides (India) Ltd. ("IIL") is one of the leading manufacturers of agrochemicals, pesticides and technical products catering to the needs of domestic as well as international markets. IIL boasts of an impressive product portfolio consisting of 21+ technical products and 105+ formulation products. IIL, in its' board meeting, has announced its unaudited results for Q2 and H1 ended on 30th September, 2022.

Consolidated financial statement highlights for Q2 FY23 v/s Q2 FY22

	Particulars (Rs. Mn)	Q2 FY23		Q2 FY22		YoY%	Q1 FY23
	Revenue from Operations	5,822.09		4,439.39		31.15%	5,606.90
	Other Income	2.84		(3.14)		1.94
	Total Revenue	5,824.93	4,436.25	31.30%	5,608.84
	Total Expenses excluding Depreciation, Amortization &	5,137.55		3,797.70			5,022.37
	Finance Cost
	EBITDA	684.54		641.69		6.68%	584.53
	EBITDA Margin (%)	11.76%	14.45%	-269 bps	10.43%
	Depreciation & Amortization	63.99		64.39			66.24
	Finance Cost	27.40		16.99			14.08
	PBT before Share of profits of JV & investment	595.99		557.17			506.15
	Add: Share of Profits of JV & Investment	1.70		1.17			3.12
	PBT	597.69		558.34		7.05%	509.27
	Total Tax Expenses	149.36		139.55			126.19
	PAT	448.33		418.79		7.05%	383.08
	Other comprehensive profit / loss	2.79		5.44			12.50
	Net PAT	451.12		424.22		6.35%	395.58
	PAT Margin %	7.70%	9.43%	-173 bps	6.83%
	Diluted EPS	15.15		14.15		7.07%	12.94

Q2 & H1 FY23 Earnings Update

Captive IR Strategic Advisors Pvt. Ltd.

Consolidated financial performance comparison - Q2 FY23 v/s Q2 FY22

• Revenue from Operations has grown by 31.15% from Rs. 4,439.39 Mn in Q2 FY22 to Rs. 5,822.09 Mn in Q2 FY23 mainly led by increase in sales of branded formulations owing to resilient demand in domestic market and acceptance of the newly launched products in the market.
• The EBITDA increased by 6.68% from Rs. 641.69 Mn in Q2 FY22 to Rs. 684.54 Mn in Q2 FY23. EBITDA margins declined from 14.45% in Q2 FY22 to 11.76% in Q2 FY23 on a YoY basis due to increase in cost of raw materials and currency headwinds which led to a forex loss. However, on QoQ basis, the margins improved by 133 bps primarily led by better product mix and calibrated price hikes majorly offsetting elevated input cost and currency headwinds.
• PAT increased by 7.05% from Rs. 418.79 Mn in Q2 FY22 to Rs. 448.33 in Q2 FY23.
• PAT margins decreased from 9.43% in Q2 FY22 to 7.70% in Q2 FY23.

Consolidated financial statement highlights for H1 FY23 v/s H1 FY22

	Particulars (Rs. Mn)	H1 FY23		H1 FY22		YoY%
	Revenue from Operations	11,428.99		9,122.00		25.29%
	Other Income	4.78		13.16
	Total Revenue	11,433.77		9,135.16		25.16%
	Total Expenses excluding Depreciation, Amortization & Finance	10,159.91		7,949.49
	Cost
	EBITDA	1,269.08		1,172.51		8.24%
	EBITDA Margin (%)	11.10%		12.85%	-175 bps
	Depreciation & Amortization	130.22		127.80
	Finance Cost	41.48		38.54
	PBT before Share of profits of JV & investment	1,102.16		1,019.33
	Add: Share of Profits of JV & Investment	4.82		3.64
	PBT	1,106.97		1,022.97		8.21%
	Total Tax Expenses	275.55		254.59
	PAT	831.42		768.38		8.20%
	Other comprehensive profit / loss	15.29		0.96
	Net PAT	846.71		769.34		10.06%
	PAT Margin %	7.28%		8.42%	-114 bps
	Diluted EPS	28.09		25.79	8.92%

Q2 & H1 FY23 Earnings Update

Captive IR Strategic Advisors Pvt. Ltd.

Consolidated financial performance comparison for H1 FY23 v/s H1 FY22

• Revenue from operations recorded a growth of 25.29% from Rs. 9,122.00 Mn in H1 FY23 to Rs. 11,428.99 Mn in H1 FY23 mainly driven by the institutional sales and the increased acceptance of
  IIL's newly launched products.
• The EBITDA increased by 8.24% from Rs. 1,172.51 Mn in H1 FY22 to Rs. 1,269.08 Mn in H1 FY23 and the EBITDA margins de-grew from 12.85% in H1 FY22 to 11.10% in H1 FY23.
• PAT stood at Rs. 831.42 Mn in H1 FY23 as compared to Rs. 768.32 Mn in H1 FY22 recording a growth of 8.20% and PAT margins stood at 7.28% in H1 FY23 as compared to 8.42% in H1 FY22.

CONSOLIDATED CASH FLOW & BALANCE SHEET ANALYSIS

		Particulars (Rs. Mn)					H1 FY23				H1 FY22
		Net Cash Generation from operation				(1,977.03)				(803.56)
		Net Cash Generated/ (Used in) investing activity				(439.00)				515.72
		Net Cash Generated/ (Used) from Financing activity		2,199.83				327.33
		Net Increase in Cash and Cash Equivalents				(216.20)				39.49
		Particulars (Rs. Mn)			30.09.22			30.09.21				Particulars (Rs. Mn)			30.09.22			30.09.21
		Assets									Equity & liabilities
	Non-current assets							Equity
	Property, plant and equipment	2,138.98		2,004.66		Equity share capital		197.32		197.32
	Capital work-in-progress	1,256.70		712.59		Other equity		9,286.31		8,185.21
	Right-of-use assets	255.98		267.21		Total equity		9,483.63		8,382.53
	Intangible assets	67.40		64.10		Non-current liabilities
	Intangible assets under develop.	53.24		51.33		Borrowings		29.37		18.61
	Investment in JV	108.43		102.91		Lease liabilities		25.34		31.94
	Investments	73.28		47.69		Provisions		16.11		27.68
	Other Financials assets	19.84		24.95		Deferred tax liabilities (Net)		125.19		127.08
	Non-current tax assets (Net)	168.63		152.21		Total non-current liabilities		196.00		205.30
	Other non-current assets	88.95		158.01		Current liabilities
	Total non-current assets	4,231.42		3,585.67		Borrowings		2,709.73		1,908.90
	Current assets							Lease liabilities		18.05		19.12
	Inventories	7,989.65		5,693.09		Trade payables		4,738.45		2,813.45
	Trade receivables	5,210.34		4,155.91		Other Financial Liabilities		473.13		304.45
	Cash, bank and cash equivalents	213.39		122.60		Other Current Liabilities		242.30		241.73
	Other financial assets	19.88		23.63		Provisions		27.67		47.99
	Other Current Assets	457.26		450.16		Current tax liabilities (Net)		233.02		107.59
	Total current assets	13,890.55		10,445.39		Total current liabilities		8,442.35		5,443.24
	TOTAL ASSETS	18,121.97		14,031.06		TOTAL LIABILITIES		18,121.97		14,031.06
	Q2 & H1 FY23 Earnings Update									Captive IR Strategic Advisors Pvt. Ltd.

• Total fixed assets (tangibles inc. CWIP) grew by 24.96% from Rs. 2,717.25 Mn in H1 FY22 to Rs. 3,395.68 Mn in H1 FY23 owing to the CAPEX incurred.
• Current assets stood at Rs. 13,890.55 Mn in H1 FY23 as compared to Rs. 10,445.39 Mn in H1 FY22.
• Long term borrowings stood at Rs. 29.37 Mn in H1 FY23, compared to Rs. 18.61 Mn in H1 FY23 and Short-term borrowings at Rs. 2,709.73 Mn in H1 FY23, compared to Rs. 1,908.90 Mn in H1 FY22 owing to the increase in working capital requirement.
• Working capital cycle has marginally decreased to 153 days in H1 FY23 as compared to 159 days in
  H1 FY22.
• Debt Equity ratio stood at 0.29 in H1 FY23 compared to 0.23 in H1 FY22 owing to the increase in the short-termborrowings.
• Cash flow from operations stands at Rs. (1,977.03) Mn in H1 FY23 as compared to Rs. (803.56) Mn in H1 FY22.

Financial snapshot

Improving Performance QoQ

	Revenue from operations	EBIDTA	PAT	EBITDA%	PAT%
7000						16.00%
	14.45%			5,822.09	14.00%
6000	5,606.90
5000					11.76%	12.00%
	4,439.39
		10.43%				10.00%
4000	9.43%
					7.70%	8.00%
3000		6.83%
					6.00%
2000						4.00%
1000	641.69	584.53			684.54	2.00%
	418.79	383.08		448.33
0						0.00%
	Q2 FY22	Q1 FY23			Q2 FY23

Half Year Performance

Q2 & H1 FY23 Earnings Update

Captive IR Strategic Advisors Pvt. Ltd.