Excel Crop Care sales up 26% in Q2

Date:12-14-2012

Indian agrochemical company Excel Crop Care has archived a 25.8% increase in sales to Rs 2,066.1 million in the second quarter of 2012 which ended September 30th, 2012.  Net profit dropped Rs 7.4 million, or 8.9% to Rs 76.0 million. Sales in the first half year reached Rs 4,161.7 million, up by 28.2%. Net profit was improved by 27.1% to Rs 185.5 million in the first half year.

Excel Crop Care is India's largest maker of endosulfan, a controversial pest killer often linked to health hazards.

India's Supreme Court had last year banned the manufacture and sale of endosulfan in the country. The United Nations in June 2011 had added endosulfan to its list of hazardous industrial chemicals. 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.

In September, the Supreme Court announces that allowing the export of endosulfan to enable the manufacturers to meet their contractual obligations. In November this year, an Indian expert committee told the Supreme Court that use of pesticide endosulfan may be allowed for next two years only to exhaust the existing stock and the raw material used for its production.

According to Excel, the company has field appeal before the Competition Appellate Tribunal challenging the Order dated 23rd April, 2012 of the Competition Commission of India imposing a penalty of Rs 639 million on the Company. The Tribunal has granted stay of the penalty upon deposit of Rs 63.9 million.