About INDIAN POTASH LIMITED Unlisted Shares
INDIAN POTASH LIMITED was established to promote the use of Potash in the whole country. The company handled the potash imports and marketing of potash in the country. The story of Indian Potash Limited began with the vision of a few dedicated people. Before 1950, the use of Potash was odd and too limited to a few southern states of India. Indian farmers were unaware of Potash being used as fertilizer.
Indian Potash Limited has stood the test of time in spite of the decontrol of Phosphatic and Potasic fertilizers in 1992. Without diluting balanced fertilizer promotion, the company has diversified into cattle feed, dairy, rural warehousing, and sugars.
The company is supplying fertilizers throughout the year across the whole of India and ensures their availability in every corner of the country. The company is producing and markets cattle feed in northern and southern parts of the country. Indian Potash Limited has the capacity to procure and process around 7 lakh liters of milk every day. In 2010, Indian Potash Limited acquired 5 old sugar factories and renewed them to work at optimal levels.
Indian Potash Limited, in collaboration with MMTC Limited (a state-owned trading firm), has launched its jewelry showroom, “IPL Swarnalaya” in New Delhi. The showroom will deal in jewelry, medallions, and MMTC’s silver jewelry brand, ‘Sanchi’.
Moreover, the company has the plan to construct a greenfield port in Southern Gujarat with a total investment of around Rs. 1,500 Crores. The company already handles fertilizers shipment of more than 3 million tonnes a year at all major and minor ports.
Indian Potash Limited has developed a network of dealers across pan India including inaccessible areas with all its services being coordinated by 15 regional offices.
INCORPORATION DETAILS
|
CIN |
U14219TN1955PLC000961 |
|
Registration Date |
17 June 1955 |
|
Category/Sub-category of the Company |
Public Limited |
|
Address of the Registered office and contact details |
Seethakathi Business Centre, 1st Floor, 684-690, Anna Salai, Chennai-600 006. Ph. No.28297855/28297869 |
|
Name, Address and Contact Details of Registrar and Transfer Agent, if any |
Cameo Corporate Services Ltd Subramanian Building” #1, Club House Road Chennai 600 002 - India. Ph No: 91-44 - 2846 0390 |
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
|
Name and Description of main products/services |
NIC Code of the product/service |
% to total turnover of the Company |
|
Muriate of Potash |
46692 |
38.29% |
|
Di Ammonium Phosphate |
46692 |
38.04% |
|
Urea |
46692 |
7.60% |
BOARD OF DIRECTORS
Shri. Sundeep Kumar Nayak, IAS (Chairman)
Shri. B.S. Nakai
Dr. U.S. Awasthi
Shri. Arvind Agarwal, IAS
Shri. Dileep Sanghani
Shri. Amarjit Singh Samra
Ms. Swati Meena Naik, IAS
Shri. Devinder Kumar
Shri. P.C. Munshi
Ms. Reena Kaishing
Shri. Santosh Kumar Dash, Oas (S)
Shri. S.C.Mudgerikar
Shri. M.Murugan
Shri. Shivakumar Gouda Patil
Dr.P.S.Gahlaut (Managing Director)
PARTICULARS OF SUBSIDIARY COMPANIES
|
Name of the Company |
% of shares held |
|
IPL Sugars and Allied Industries Limited |
100% |
|
IPL Gujarat Port Limited |
100% |
|
GoldlineMilkfood and Allied Industries Limited |
100% |
|
Sri Krishna Fertilisers Limited |
100% |
INDIAN POTASH LIMITED UNLISTED SHARE DETAILS
|
Total Available Shares: |
2,85,97,200 |
|
Face Value: |
Rs. 10 Per Equity Share |
|
ISIN: |
INE863S01015 |
|
PAN NO. |
AAACI0888H |
|
Lot Size: |
100 |
|
Last Traded Price |
Rs 1000 |
|
Market Cap: |
2859.72 CRORE |
SHAREHOLDING PATTERN
(As on 31-03-2020)
|
S. No. |
Shareholders’ Name |
Number of shares |
% of total Shares of the company |
|
1 |
Indian Farmers Fertiliser Co-operative Limited |
97,20,000 |
33.99 |
|
2 |
Gujarat State Co-Op MKTG Federation Limited |
29,88,000 |
10.45 |
|
3 |
Gujarat State Fertilisers and Chemical Ltd. |
22,50,000 |
7.87 |
|
4 |
Andhra Pradesh State Co-op MKTG Federation Limited |
17,82,000 |
6.23 |
|
5 |
Madras Fertilisers Limited |
15,84,000 |
5.54 |
|
6 |
E.I.D Parry (India) Limited |
12,74,400 |
4.46 |
|
7 |
Tamil Nadu Co-Op MKTG Federation Limited |
9,60,000 |
3.36 |
|
8 |
West Bengal State Co-Op MKTG Federation Limited |
9,36,000 |
3.27 |
|
9 |
Karnataka State Co-Op MKTG Federation Limited |
8,64,000 |
3.02 |
|
10 |
Steel Authority of India Ltd |
7,20,000 |
2.52 |
|
11 |
Others |
55,18,800 |
19.29 |
|
|
Total |
2,85,97,200 |
100 |
INDUSTRY OUTLOOK
The onset of the southwest monsoon was delayed and was weak in most parts of India in the initial period of FY 2020. Most of the states experienced a deficit in rainfall to the extent of 30 – 40% and this resulted in delays in sowing and low consumption of fertilizers.
Rabi sowing was higher in 2nd Half of FY 2020 due to healthy reservoir levels and highexcess rainfall in the North-East monsoon. The government has increased the minimum support price (MSP) for six Rabi crops for the 2019-20 season following the Government’s aim to have MSPat 150% of the cost of production. This is with the Department of Agriculture’s forecasted increase of acreage from 590.60 lakh hectares to 641.30lakh hectares during Rabi 2019-20 and as a result, both production and imports increased.
With a late surge in the monsoon, the soil moisture, and healthy reservoir levels, the sowing levels in the rabi season have witnessed healthy growth. The industry is expected to have reasonable growth for fertilizer sales in the current rabi season with DAP (Di Ammonium Phosphate)/NPK (Nitrogen, phosphorus, and potassium) expected to grow at a robust pace as there has been significant moderation in the retail prices year-on-year driven by a fall in the import prices.
Urea demand is expected to remain stable as the offtake by farmers remains more or less uniform, given the current price levels.
While the retail price of the P&K (Phosphatic & Potassic) segment has reduced, the industry expects a slight expansion in the contribution margin for DAP/NPK players which should inturn support profitability.
However, the credit metrics of the industry are expected to remain subdued given the continueddelay in subsidy disbursement by the government.
Talking about the Sugar industry, post nationwide lockdown in 2020, 502 sugar mills in the country started operations from October 2020 to February 2021. In total, they have produced 233.77 lakh tonnes of sugar as of 28th February 2021, which is around a 20% increase when compared to 194.82 lakh tonnes produced by 453 sugar mills in the last season till 29th February 2021.
KEY FINANCIALS OF INDIAN POTASH LIMITED (In Rs. Crores)
|
Particulars |
2020 |
2019 |
2018 |
2017 |
|
Revenue from Operations |
14,483.36 |
15,430.13 |
13,200.56 |
11,728.07 |
|
EBITDA |
636.21 |
534.82 |
393.79 |
505.46 |
|
EBITDA margin |
4.39% |
3.47% |
2.98% |
4.31% |
|
Finance Cost |
253.82 |
283.78 |
151.04 |
148.31 |
|
Depreciation |
52.31 |
42.53 |
48.85 |
26.98 |
|
Other Income |
159.86 |
302.41 |
328.93 |
235.47 |
|
Profit Before Tax and share of net profits of investments |
489.95 |
510.92 |
522.84 |
565.64 |
|
Share of net profits of investments accounted for using the equity method |
341.68 |
134.41 |
-0.01 |
0.00 |
|
Impairment loss on investment in associate company |
-269.80 |
0.00 |
0.00 |
0.00 |
|
Profit before Tax |
561.83 |
645.34 |
522.82 |
565.64 |
|
Total Tax |
184.78 |
191.01 |
175.30 |
204.62 |
|
Profit After Tax (PAT) |
377.06 |
454.33 |
347.52 |
361.02 |
|
PAT margin |
2.57% |
2.89% |
2.57% |
3.02% |
|
EPS |
131.85 |
158.87 |
121.52 |
252.49 |
BALANCE SHEET OF INDIAN POTASH LIMITED (In Rs. Crores)
|
Particulars |
2020 |
2019 |
|
ASSETS |
||
|
NON CURRENT ASSETS |
||
|
Tangible assets |
957.24 |
834.08 |
|
Intangible assets |
5.35 |
8.06 |
|
Investments accounted for using the equity method |
842.44 |
798.61 |
|
Financial assets |
475.15 |
448.21 |
|
Tax assets |
87.80 |
130.50 |
|
Other noncurrent assets |
58.25 |
114.78 |
|
TOTAL NON CURRENT ASSETS |
2,426.22 |
2,334.24 |
|
CURRENT ASSETS |
||
|
Inventories |
2,573.83 |
2,570.54 |
|
Financial assets |
45.56 |
28.11 |
|
Trade receivables |
5,408.38 |
4,301.94 |
|
Cash and Cash equivalents |
561.34 |
765.25 |
|
Other current assets |
566.51 |
474.18 |
|
An asset classified as held for sale |
0.00 |
0.52 |
|
TOTAL CURRENT ASSETS |
9,155.62 |
8,140.55 |
|
TOTAL ASSETS |
11,581.84 |
10,474.79 |
|
EQUITY AND LIABILITIES |
||
|
EQUITY |
||
|
Equity share capital |
28.60 |
28.60 |
|
Other Equity |
3,631.84 |
3,217.52 |
|
TOTAL EQUITY |
3,660.44 |
3,246.12 |
|
LIABILITIES |
||
|
NON CURRENT LIABILITIES |
||
|
Borrowings |
97.50 |
292.50 |
|
Financial liabilities |
60.57 |
37.51 |
|
Employee benefits obligations |
4.99 |
11.30 |
|
Deferred tax liabilities (net) |
0.04 |
0.09 |
|
Other non-current liabilities |
1.28 |
1.27 |
|
TOTAL NON-CURRENT LIABILITIES |
164.38 |
342.66 |
|
CURRENT LIABILITIES |
||
|
Borrowings |
3,575.38 |
2,851.54 |
|
Trade payables |
3,453.90 |
3,280.61 |
|
Financial liabilities |
425.41 |
494.95 |
|
Provisions |
72.94 |
72.94 |
|
Contract liabilities |
67.74 |
76.81 |
|
Employee benefits obligations |
6.56 |
7.01 |
|
Current tax liabilities (net) |
94.48 |
67.92 |
|
Other current liabilities |
60.61 |
34.23 |
|
TOTAL CURRENT LIABILITIES |
7,757.03 |
6,886.00 |
|
TOTAL LIABILITIES |
7,921.41 |
7,228.67 |
|
TOTAL EQUITY AND LIABILITIES |
11,581.84 |
10,474.79 |
DIVIDEND HISTORY
|
Particulars |
2020 |
2019 |
2018 |
|
Dividend (final + interim) (In Rs.) |
2.5 |
1.5 |
3 |
|
Retained Earnings (Consolidated) (In Rs. Crores) |
3,052.29 |
2,678.72 |
2,230.62 |
PERFORMANCE OF THE COMPANY
The company’s total volume sales of all products at 0.62 Crorein FY 2020 tonnes is showing growth over 0.56 Croretonnes clocked during FY 2019.
Revenue from Operations of Indian Potash Limited declined by 6% from Rs. 15,430.13 Crores in FY 2019 to Rs. 14,483.36 Crores in FY 2020. The major reason for the decline in revenue of the company is the absence of Urea imports as StateTrading Enterprise (STE) which had accounted for Rs 1,658 crores in the previous year.
Despite the decrease in operational revenue, the EBITDA of the company increased by 19% in FY 2020 and reached Rs. 636.21 Crore from Rs. 534.82 Crore in FY 2019. EBITDA margins improved to 4.39% for FY 2020 from 3.47% for FY 2019.
Profit after Tax of the company decreased by 17% from Rs. 454.33 Crores in FY 2019 to Rs. 377.06 Crores in FY 2020.
The current Ratio of the company for FY 2020 was 1.18. This shows that the company is maintaining its liquidity efficiently.
The total book value of the company as of 31st March 2020 was Rs. 3,660.44 Crores. The company’s Return on Capital Employed stood at 23% for FY 2020. And the Total Debt to equity ratio of the company as of 31st March 2020 was 1.
