Kilpest India Ltd updates on Covid19 test kits business

Kilpest India Ltd has announced that it has successfully completed all previous Government orders and full payment has been realised.

The company said that it has sold 4,22,000 COVID-19 RT-PCR Tests in the month of August with an average price realisation of Rs. 325/- per test. There is very aggressive competition in private market and companies are offering rates below Rs. 250/- due to which, company's market share is reducing. The company said that it cannot reduce the rates drastically for several business reasons.

Similar trend has been observed in Government tenders where prices ranging from Rs. 150/- to 200/- are being quoted by few companies due to which the company could not get Government tenders in August 2020.

The company announced that it will be bidding keeping above facts in mind.

The company also clarified that Government of India has allowed a quota for exports of RT-PCR kits vide trade notice no. 20/2020-21 dated 31/07/2020. However, it allows only one application per manufacturer per month to be filed. Also, time taken by Government to approve a license is not certain. So the company is in negotiations with customers who can give a reasonable rate (as with Chinese / Korean companies’ competition, prices have gone down globally also).

Looking into above facts, the company feels that it is not very realistic to expect too much from the export market. Only when it is free to export RT-PCR kits, then the company can go aggressive as no customer is willing to wait for a month (time taken to get export license) after placing the order.

Shares of KILPEST INDIA LTD. was last trading in BSE at Rs.385.15 as compared to the previous close of Rs. 393. The total number of shares traded during the day was 5280 in over 131 trades.

The stock hit an intraday high of Rs. 385.15 and intraday low of 385.15. The net turnover during the day was Rs. 2033592.

Source : Equity Bulls

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