Best Agrolife Ltd. reports INR 519.3 crore revenue for FY25, announces continued focus towards building branded business

Best Agrolife Limited (BSE: 539660, NSE: BESTAGRO), amongst India’s leading agrochemicals manufacturers, announced its unaudited financial results for the quarter ended June 30th, 2024, in the Board meeting held on 12th August, 2024.

Commenting on the result and overall update on the Q1 FY25, Mr. Vimal Kumar, Managing Director, Best Agrolife Ltd. said,

″The early arrival of the monsoon in India has boosted positive sentiments in the agricultural sector. La Niña conditions are expected to intensify in the latter half of the monsoon season, compensating for the current precipitation deficiency. As of June 28, 2024, Kharif sowing had surged by 10% year-on-year, reaching 58 million hectares, driven primarily by the increased cultivation of pulses, oilseeds, and cotton. This should boost EBITDA for agrochemical companies in the coming quarters. Inventory de-stocking issues should improve with the good monsoon, as higher demand and improved volumes have helped companies liquidate excess inventory in Q1 FY25.

During the quarter, Best Agrolife achieved key milestones, including launching the patented product "Orisulam" and introducing "Nemagen," expanding our agrochemical solutions. Additionally, we secured a patent for a Stable Synergistic Pesticidal Composition, highlighting our commitment to innovation and sustainability. These advancements demonstrate our dedication to providing cutting-edge solutions and supporting farmers with reliable products.

We have entered the new fiscal year with an optimistic outlook, focusing on delivering value to farmers through R&D. We believe that with a good monsoon, we will be able to achieve our growth targets. Our strategic shift to focus more on branded business is on track, enabling us to add value in the long term.

I thank all our stakeholders for their continued support and faith in our company.″

Key Financial Highlight (Rs. Crore):

*EBITDA is calculated excluding other income

Q1 FY25 Highlights:

• Revenue from Operations declined by 15.2% YoY to Rs. 519.3 crore in Q1 FY25 compared to Rs. 612.2 crore in Q1 FY24 on the back of a delay in monsoon during the later part of June and clearance of expensive inventory built in Q4 FY24. At the same time, Branded sales contributed 63% to the overall revenue as against 55% in Q1FY24, in line with the strategy to focus on building the branded business. Although, the monsoon set in early but the dry spell in June resulted in the postponement of sales from Q1 to Q2.

  
  

• Q1 FY25 EBITDA was at Rs. 54.6 crore compared to Rs. 130.0 crore in Q1 FY24. This is not only due to a decline in revenues but also due to the liquidation of expensive inventory carried from Q4FY24 and the strategic shift to branded sales from institutional sales, which led to higher employee & other expenses.

  
  

• Q1 FY25 PAT stood at Rs. 21.3 crore compared to Rs. 90.5 crore in Q1 FY24

Business Achievements/Developments in Q1 FY25:

During the quarter, Best Agrolife achieved key milestones by launching four patented products.

The Company launched a patented rice herbicide under the brand name ″Orisulam,″ which is a broad-spectrum pre-emergence, early post-emergence and post-emergence herbicide. This patented triple combination herbicide controls a wide variety of weeds, grasses and sedges.

Best Agrolife also introduced another new patented product under the brand name of "Nemagen″. This is an innovative broad-spectrum insecticide with three potent technicals of CTPR, Novaluron, and Emamectin. This product combats the developing pest resistance. This product is an excellent solution for farmers for crops such as cotton, paddy, maize, pulses and vegetables.

The Company also introduced a patented soybean seed treatment and insecticide under the brand name ″Warden Extra″. India ranks 5th in the world for soybean production and this product has an excellent scope for the years to come.

And the fourth patented product is a unique product - ″Defender″. This unique insecticide plus fungicide combination is an excellent paddy product with effectiveness against fungal diseases such as blight as well as for eradicating the major paddy pest of BPH. This combination will control the major threats to paddy crops, thus improving yields and crop resilience. With the expectation of good rains and a good paddy crop, this will be another good product for the years to come.

Additionally, the Company secured a patent for a Stable Synergistic Pesticidal Composition, highlighting its commitment to innovation and sustainability. These advancements demonstrate the Company’s dedication to providing cutting-edge solutions and supporting farmers with reliable products.