The Waterbase limited announces Q3 FY21 Results

The Waterbase Ltd. (TWL), pioneer in the Indian Aquaculture Industry with integrated offerings of hatcheries, shrimp feed and farmcare products supported by shrimp processing capacities has announced its financial results for the quarter ended December 31, 2020.

Financial Highlights - Q3 FY21

- Reported Total Income of Rs. 36.65 crore
- Loss before Tax of Rs. 0.96 crore
- Loss after tax of Rs. 0.68 crore

Commenting on the results, Mr. Ramakanth V. Akula, CEO said, "We are in the midst of a transformation program that is focused on enhancing the quality of revenues. By working closely with trade partners we aim to move away from predominantly credit sales into a revenue model with greater focus on cash and carry sales. This is being undertaken in a measured manner and we now have one-fourth of revenues on cash-and carry basis within 3 quarters of implementation of this program. As anticipated, the tighter credit terms have impacted the revenue performance which was already subdued due to a constrained macro-environment. However, the longer-term benefits of the transformation will substantially outweigh the near-term pain. We have witnessed an improved financial position on a year on year basis, despite the disruption due to COVID-19.

The winter crop of FY21 was impacted by unseasonal rains and flooding in Andhra Pradesh as well as sporadic incidences of disease. The impact of these developments has spilled over to the hatchery business too. The combination of tighter credit controls and the external challenges has impacted revenues in Q3. Profitability has been impacted too as lower revenues have not sufficiently absorbed overheads. The silver lining for the year till date has been the resilient performance of the farmcare business.

Developments in recent months have enabled us to witness the fairly inelastic nature of shrimp consumption globally as out-of-home consumption was rapidly replaced by sales at grocery and retail stores. Industry fundamentals remain robust as key importing countries are expected to require higher volumes of shrimp in the forthcoming year. As a preferred supplier with substantial market share, India is well placed to meet the rising demand. Local farmgate prices are stable and the farming community is focused towards the upcoming season. As a result, we remain cautiously optimistic around the outlook for the business."

Shares of WATERBASE LTD. was last trading in BSE at Rs.119 as compared to the previous close of Rs. 117.3. The total number of shares traded during the day was 16186 in over 316 trades.

The stock hit an intraday high of Rs. 122.2 and intraday low of 117. The net turnover during the day was Rs. 1944747.

Source : Equity Bulls

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