Excel Crop Care dips by 5.2% in 2011

Excel Crop Care (India) posted a 9.7% increase in sales to Rs 1,763 million in the fourth quarter of fiscal 2011 which ended on 31st, March 2012, compared with Rs 1,607.7 million last year. For the full year, sales decreased by 5.2% to Rs 6789.7 million.

In compliance with ad-interim Order passed by the Hon’ble Supreme Court on 13th May, 2011, the company immediately suspended production and sale of insecticide endosulfan. Subsequently, pursuant to Orders passed by the Hon’ble Supreme Court, the company exported its entire stock of endosulfan technical and over one-third of endosulfan formulations stock during the year. The remaining stocks of endosulfan formulation are being exported as and when export orders are secured.

Endosulfan has been the single largest product of the company. Its absence in the company’s product portfolio for the major part of the year (barring exports as referred to above) severely impacted the company’s sales and profits. Though the shortfall in the sales was made up to an extent by increased sale of other manufactured and traded products, there has been significant erosion in the margins for the year.

The company carries provision aggregating to Rs 163 million (including Rs 61 million made during the year 2011-12 and shown as Exceptional Item) in respect of stocks relating to endosulfan. In the opinion of the company, the amount of such provision is sufficient and reasonable.

Vide its order dated 23rd April, 2012, the Competition Commission of India held that there was a violation of Section 3 of the Competition Act, 2002, in relation to supply of aluminium phosphide to one of the buyers and imposed a penalty of Rs 639 million on the company. The company has decided to file an appeal against the said Order before the Competition Appellate Tribunal.