NACL Industries Limited recorded remarkable growth numbers for both Q4 and FY 22

Highlights of the Company Performance in Q4 & Financial Year 2021-22

Indian agrochemical company NACL Industries Limited recorded remarkable growth numbers for both Q4 and FY 22.Total income for the Quarter ended March 31, 2022 is ₹ 475.61 Cr, registering a growth of 41%; Earnings Before Interest, Depreciation and Tax (EBIDT) and Profit After Tax (PAT) for the Quarter ended March 31, 2022 stood at ₹ 42.77 Cr and ₹ 21.02 Cr respectively compared to ₹ 35.21 Cr and ₹ 17.14 Cr in the corresponding period of previous year.

Total income for the year ended March 31, 2022 is ₹ 1,656.56 Cr, registering a growth of 37%; Earnings Before Interest, Depreciation and Tax (EBIDT) and Profit After Tax (PAT) for the year ended March 31, 2022 stood at ₹ 157.25 Cr and ₹ 76.04 Cr respectively compared to ₹ 128.06 Cr and ₹ 50.29 Cr in the corresponding period of previous year.

Performance at Glance

Key Updates on Q4 2021-22

• Exports grew significantly in Q4, with 85% growth over the previous corresponding quarter. Overall business for the FY’ 2021-22 saw a YOY growth of 82%. Strong relationships with MNCs, commercialization of new formulation registrations, and a focus on trading opportunities have contributed to this performance, despite the challenges posed due to disrupted supply schedules, raw material price volatility and logistic issues. The outlook for FY’23 looks promising, with both the existing products and commercialization of new registrations
  

• Domestic retail business witnessed a growth of 37% over the corresponding quarter of last year. This was mainly on account of significant growth in herbicides and introduction of new products in the market.  There was an overall growth of 20% over the previous year in our domestic retail business facilitated by growth in volume and higher price realization, despite the challenging market conditions, on account of un-seasonal rains, exotic pests and changes in cropping patterns
  

• Srikakulam & Ethakota Manufacturing units have shown significant increase in production by 26% and 24% respectively over the previous year, while meeting all safety and statutory norms. Both the plants have achieved highest ever production through their diligent efforts and by responding to customer demands in a timely manner. Srikakulam Plant received the prestigious CII Andhra Pradesh Industrial Safety Leadership Award for Andhra Pradesh from CII, and the Industry Champion Award from the Govt. of Andhra Pradesh
  

• The Srikakulam plant has received “Environment Clearance” from the Ministry of Environment, Forest and Climate Change (MoEF&CC) to more than double its manufacturing capacity from 30 Tonnes Per Day (TPD) to 70.1 TPD
  

• R&D Function is working not only on various Active Ingredients (AIs) and Formulations for overseas and Indian Customers, but also on process improvement projects focussed on cost and effluent reduction
  

• Construction activities at Dahej in Gujarat for the Greenfield project are progressing well and getting closer to commissioning
  

• The Board of Directors in their meeting held on May 12, 2022 have recommended a final dividend of ₹ 0.15 per Equity Shares of ₹1 each. The total dividend for the year ended March 31, 2022 is ₹ 0.55 per Equity Shares of ₹1 each
  

Comments from Mr. M. Pavan Kumar, MD & CEO

We are delighted to share the heartening results achieved by NACL in Q4 2022, culminating in another record year for the Company. Despite significant macro level challenges such as supply chain disruptions and raw material price volatility, NACL remained resolute in its pursuit of desired outcomes. Thanks to the resolve of our team, we have been able to adapt, innovate and persevere.

This year is an important inflection point for the company, as we are poised to cross many new milestones on our growth journey. We continue to make substantial investments in our manufacturing capabilities, new products and processes, and pursuing several promising growth opportunities. As we embark on the next phase of our growth we reaffirm our commitment to customer centricity, productivity and sustainability, which have been the core principles in our quest to meet and exceed the expectations of our stakeholders.