Dhanuka Agritech Q1FY21 results: consolidated profit increases by 252% yoy

Dhanuka Agritech announced its quarterly results on July 22, 2020. Consolidated net sales in Q1FY21 stood at Rs373.85cr, which increased by 70.72% yoy from Rs218.98cr in Q1FY20.

EBITDA stood at Rs65.28cr in Q1FY21 that increased by 228.87% yoy. For Q1FY20, it had posted EBITDA of Rs19.85cr. EBITDA margin as of Q1FY21 was at 17.46% that incresaed by 8.40% yoy against the same quarter, the previous year.

The net profit in Q1FY21 came in at Rs51.79cr that increased by 252.89%, as compared to Q1FY20, when it reported Rs14.67cr. The net profit margin in Q1FY21 came in at 13.85% growth of 7.15% yoy. The net profit margin for Q1FY20 was at 6.7%.

At around 2:20 pm, the share is trading at Rs862.45 with gains of 5.19% on BSE.

On share buyback, the company said it proposes to buyback about 10 lakh shares at a maximum rate of Rs 1,000 per piece, and maximum offer size of Rs 100 crore.

Its board has constituted a buyback committee which will decide the same through tender offers on a proportionate basis. Emkay Global Financial Services has been appointed as manager for this purpose.

Dhanuka Agritech said the Group resumed operations in a phased manner from the beginning of April as per government directives on COVID-19 pandemic. However, subsidiary firm Dhanuka Agri-Solutions has not yet started operations.

With a view to ensure minimal disruption with respect to operations including production and distribution activities, the Group has taken several business continuity measures, including working from home, providing laptops or desktops, following social distancing norms and sanitization of office/work places, it said.

"While the Group has not experienced any significant difficulties with respect to market demand, liquidity, collections so far, the management believes that being into an essential commodity there is no significant impact of COVID-19 pandemic on the current and future business operations, no impact on financial statements liquidity position and cash flows...," it said.

The company said it continues to closely monitor the rapidly changing situation.

Dhanuka Agritech manufactures insecticides, pesticides and other chemicals. The company has technical tie-ups with 4 American and 6 Japanese companies.