NACL Industries Ltd announces Q1FY21 results

Highlights of the Company Performance in Q1, FY 2020-21

Revenue from operations for the quarter ended 30th June, 2020 achieved is Rs. 252.02 Cr registering a growth of 32%. Company achieved highest ever Q1 revenues in the current quarter.

Earnings Before Interest, Depreciation and Tax (EBIDT) and Profit After Tax (PAT) for the Quarter April 2020 - June 2020 stood at Rs. 21.38 Cr and Rs. 5.36 Cr respectively compared to Rs. 13.88 Cr and Rs. 1.24 Cr in the corresponding periods of previous year.

In Q1, Domestic retail grew by 36% over corresponding L.Y period. In Q1 company launched a Rice herbicide to its portfolio by the brand name CUBIT. In Q2, Company is planning for 3 more additions to its product portfolio.

The exports business during this quarter grew by more than 50% when compared to the same period of the corresponding year. The forecast for the next quarter and the financial year is encouraging.

This quarter had been toughest of all times for Srikakulam plant operations due to Covid-19 spread and several restrictions and hurdles on movement of material and people. The Company had taken all measures to ensure safety of employees and continue production.

Ethakota unit actively participated and contributed to relief measures taken up by the Local authorities for the surrounding villages. The production was affected in April due to lockdown and disturbance in supplies of raw materials in May, June. However, the company is back to normal operation by June end.

There have been numerous challenges in sourcing during Q1 due to Covid related lockdown and logistical restrictions. However, alternate options were developed to minimise the impact. The supply situation has improved in Q2 and all inputs are well covered.

During Q1, R&D has developed processes for few important active ingredients and formulations, both for domestic and export market.

The Board of Directors, in its meeting held on August 12, 2020, have approved raising of funds for an amount of Rs. 1,950 lakhs by way of issuing 50,00,000 Convertible Warrants at an issue price of Rs. 39/- on a preferential basis to Mrs.K.Lakshmi Raju, Promoter of the Company and also approved 'NACL Employee Stock Option Scheme-2020'. An Extraordinary General Meeting (EGM) of the shareholders of the Company is being convened on September 7, 2020 to seek approval of shareholders for the same.

Shares of NACL Industries Ltd was last trading in BSE at Rs.46.9 as compared to the previous close of Rs. 49.2. The total number of shares traded during the day was 19893 in over 333 trades.

The stock hit an intraday high of Rs. 50.55 and intraday low of 46.45. The net turnover during the day was Rs. 945427.

Source : Equity Bulls

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