INDOFIL INDUSTRIES LIMITED
ABOUT INDOFIL INDUSTRIES LTD
INDOFIL INDUSTRIES LIMITED(Indofil) is one of the largest players in theAgricultural Chemicals as well as Industrial Chemicalssegment. Indofil Industries Limited has now well-equipped manufacturing infrastructure, an experienced Research and Development team and an excellent distribution network in global marketplace.
Indofil Industries Limited is now present in more than 120 countries. Indofil Industries Limited is a successful marketer of Insecticides in India. The company is a promoter of “Crop Care Concept”, where the needs and problems of the crops are identified and attempts are made to fulfil all the need and solve the problems in a systematic approach.
Indofil Industries Limited is also a leader in manufacturing of speciality performance chemicals and supplies its products to wide variety of small, medium and large industrial manufacturers across the globe. The Specialty and Performance Chemical Division (SPCD) is headquartered in Mumbai and its manufacturing facilities are located in Thane, Vashi(Navi Mumbai) and Vapi in Gujarat.
The company has started a new initiative called “IndoLife Super Specialities”, in which they will work mainly to improve the return on investments for farmers by providing the research based innovative solutions. The department will address various issues at different stages of crop growth.
INCORPORATION DETAILS
CIN | U24110MH1993PLC070713 |
Registration Date | 9 February 1993 |
Category / Sub-Category of the Company | Company having Share Capital |
Address of the Registered office and contact details | Kalpataru Square, 4th Floor, off Andheri Kurla Road, Andheri(East), Mumbai- 400059 Tel.No. 022-66637373 |
Name, Address and Contact details of Registrar and Transfer Agent, if any | MAS Services Ltd, T-34, 2nd Floor, Okhla Indl Area, Phase-II, New Delhi – 110 020 Telephone No. 011-26387281 - 83 E-Mail id: info@masserv.com |
PARTICULARS OF SUBSIDIARY AND ASSOCIATECOMPANIES
Name of the Company | Subsidiary | % of shares held |
Good Investment (India) Limited | Subsidiary | 100% |
Quick Investment (India) Limited | Subsidiary | 100% |
Indo Baijin Chemicals Private Limited | Subsidiary | 51% |
Indofil Bangladesh Industries Private Limited | Subsidiary | 100% |
Indofil Costa Rica S.A., Sanjose | Subsidiary | 100% |
Indofil Industries (Netherlands) BV | Subsidiary | 100% |
Indofil Industries (International) BV | Subsidiary | 100% |
Indofil Industries DO Brasil LTDA | Subsidiary | 100% |
Indofil Philippines Incorporated | Subsidiary | 100% |
Agrowin Bioscience s.r.l. | Subsidiary | 80% |
Indo Reagens Polymer Additives Private Limited | Associate/Joint Venture | 49.90% |
PT Industries Indonesia | Subsidiary | 100% |
Finkotech Private Limited | Subsidiary | 100% |
BOARD OF DIRECTORS
Dr. Bina Modi (Chairperson and Managing Director)
Ms. Charu Modi (Executive Director)
Mr. Samir Modi (Non-Executive and Non-independentDirector)
Ms. Aliya Modi (Non-Executive and Non-independentDirector)
Mr. Sunil K. Alagh (Non-Executive and Independent Director)
Mr. M. N. Thakkar (Non-Executive and Independent Director)
Mr. Sanjay Buch (Non-Executive and Independent Director)
Mr. S. Lakshminarayanan, IAS(Retd.) (Non-Executive and Independent Director)
Dr. Atchutuni L. Rao (Whole-time Director)
PRINCIPAL BUSINESS ACTIVITES OF THE COMPANY
Name and Description of main products/services | NIC Code of the product/service | % to total turnover of the Company |
Agro Chemicals | 20211 | 86% |
Specialty & Performance Chemicals | 20297 | 14% |
INDOFIL INDUSTRIES LIMITED UNLISTED SHARE DETAILS
Total Available Shares: | 2,29,58,222 |
Face Value: | Rs. 10 Per Equity Share |
ISIN: | INE071I01016 |
PAN NO. | AABCI4568D |
Lot Size: | 100 |
Last Traded Price | Rs 750 |
Market Cap: | 1721.87 CRORE |
SHAREHOLDING PATTERN
(As on 31-03-2020).
S. No. | Shareholders’ Name | No. of Shares | % of total Shares of the company |
1 | Promoters Shareholding | 1,42,63,475 | 62.128 |
2 | Public Shareholding | 86,94,747 | 37.862 |
| Total | 2,29,58,222 | 100 |
INDUSTRY OUTLOOK
Agro Chemical is the second largest and the fastest growingsegment in the Indian agri-input industry. With the recent outbreak of Covid-19, almost all the sectors of the economyare affected, leaving out only a few niche segments. Sectors that produce raw materials like agrochemicals includingpesticides and insecticides are currently in high demand as agriculture and other allied activities are defined as essential commodities in the country.Pests and diseases, on an average, destroy around 20-25% of the total foodproduced in India. India has been losingagricultural production worth Rs 1.48Lakh crore annually, due to the damage caused by pests, weeds and plant diseases.Agrochemicals act as a key input for crop protection and better yield. As per a report, the cost of pesticides is roughly around 0.4% of the total cost incurred by farmers.
The global market for agrochemicalsis expected to grow at aCAGR of 4.3% between 2019 and 2024and canreach $299.8billion by 2024.The industry is being significantly shaped by newdevelopments such as precision farming, integratedpestmanagement (IPM), and off-patent products.India is the 4thlargest producer of agrochemicals after United States, Japan& China. The agrochemicals industry is broadly classified intoinsecticides, herbicides, fungicides, rodenticides, biopesticidesand nematicides. Demand for Insecticides constitute around 60% of the overalldemand in the industry. Maximum consumption of cropprotection chemicals arise from the state of Andhra Pradesh,followed by states like Maharashtra, Punjab, MadhyaPradesh, Chhattisgarh, Gujarat, Tamil Nadu and Haryana.
The future of agrochemicals is bright. And the growth can be attributed to global populationgrowth, growing impetus to prevent crop loss and increase yields and rising consumer demands for sustainably producedfood. However, there are some factors than can slow down the growth of the industry. These factors are Longer product development cycles and escalating costs, Increasing severity of regulatory requirements and Government farm subsidy reduction.
Talking about Speciality chemical industry,Global speciality chemical market isexpected to grow at a CAGRof around 4%, between 2020 and 2025. It is expected toreach a market size of $1.2 trillion by 2024.Major factorsdriving this market growth are the increasing efforts for oilexploration and production, a robust growth of constructionactivities, especially in the Asia-Pacific and the Middle East& African regions. On the contrary, increasing environmentalregulations and decreasing fossil fuel reserves may hamperthe growth of the market.In India, the segment is expected togrow at a CAGR of 12%to reachover $87 billion by 2025.
KEY FINANCIALS OF INDOFIL INDUSTRIES LIMITED (In Rs. Crores)
Particulars | 2020 | 2019 | 2018 | 2017 |
Revenue from Operations | 2,216.33 | 2,251.76 | 2,048.08 | 1,956.78 |
EBITDA | 285.73 | 376.72 | 380.17 | 407.42 |
EBITDA margins | 12.89% | 16.73% | 18.56% | 20.82% |
Finance Cost | 89.88 | 68.83 | 62.71 | 41.32 |
Depreciation | 118.1 | 91.36 | 70.78 | 62.38 |
Other income | 19.55 | 12.44 | 14.46 | 14.45 |
Profit before exceptional items and tax | 97.30 | 228.97 | 261.14 | 318.17 |
Profit from Exceptional items | -31.41 | 0 | 0 | 0.00 |
Tax | -12.79 | 43.29 | 36.10 | 75.20 |
Profit after Tax (PAT) | 78.68 | 185.68 | 225.04 | 242.98 |
Share of profit from associates | 16.08 | 3.04 | 10.98 | 16.33 |
Profit for the year | 94.76 | 188.72 | 236.02 | 259.31 |
PAT margins | 4.24% | 8.33% | 11.44% | 13.15% |
EPS (In Rs.) | 44.37 | 88.4 | 110.53 | 121.45 |
BALANCE SHEET OF INDOFIL INDUSTRIES LIMITED(In Rs. Crores)
Particulars | 2020 | 2019 |
ASSETS | ||
NON CURRENT ASSETS | ||
Tangible assets | 751.3 | 746.82 |
Intangibles assets | 376.44 | 389.74 |
Financial assets | 751.21 | 858.68 |
Tax assets | 140.14 | 88.55 |
Other non current assets | 6.62 | 42.16 |
TOTAL NON CURRENT ASSETS | 2,025.71 | 2,125.95 |
CURRENT ASSETS | ||
Inventories | 459.82 | 640.39 |
Financial assets | 5.71 | 2.92 |
Trade receivables | 772.03 | 823.94 |
Cash and cash equivalents | 194.18 | 188.2 |
Other current assets | 94.36 | 125.5 |
TOTAL CURRENT ASSETS | 1,526.1 | 1,780.95 |
TOTAL ASSETS | 3,551.81 | 3,906.9 |
EQUITY AND LIABILITIES | ||
EQUITY | ||
Equity Share capital | 21.35 | 21.35 |
Other equity | 1,905.40 | 1,979.29 |
Non controlling interest | 0.27 | 0.31 |
TOTAL EQUITY | 1,927.02 | 2,000.95 |
LIABILITIES | ||
NON CURRENT LIABILITIES | ||
Borrowings and lease liabilities | 427.08 | 527.94 |
Provisions | 20.43 | 20.55 |
financial liabilities | 25.91 | 23.95 |
TOTAL NON CURRENT LIABILITIES | 473.42 | 572.44 |
CURRENT LIABILITIES | ||
Borrowings and lease liabilities | 589.3 | 596.8 |
Trade payables | 248.17 | 374.93 |
Financial liabilities | 295.93 | 331.84 |
Other current liabilities | 2.47 | 6.92 |
Provisions | 13.49 | 18.01 |
Tax liabilities | 2.01 | 5.01 |
TOTAL CURRENT LIABILITIES | 1,151.37 | 1,333.51 |
TOTAL LIABILITIES | 1,624.79 | 1,905.95 |
TOTAL EQUITY AND LIABILITIES | 3,551.81 | 3,906.9 |
DIVIDEND AND RETAINED EARNINGS
Particulars | 2020 | 2019 | 2018 |
Dividend (In Rs.) | 5 | 8 | 8 |
Retained Earnings (In Rs. Crores) | 1,372.92 | 1,321.01 | 1,192.02 |
PERFORMANCE OF THE COMPANY
Revenue from operations reduced by 1.5% from Rs. 2,251.76 Crores in FY 2019 to Rs. 2,216.33 Crores in FY 2020.
EBITDA decreased by 24.15% from Rs. 376.72 Crores in FY 2019 to Rs. 285.73 Crores in FY 2020. EBITDA margins also fell from 16.73% in FY 2019 to 12.89% in FY 2020. This states that the efficiency of the company is decreasing.
Consolidated Profit of the company stood at Rs. 94.76 Crores in FY 2020, 49.79% less than Rs. 188.72 Crores profit of FY 2019. Because of fall in Net profit, EPS also fell by 50.19% to Rs. 44.37 in FY 2020.
It can be assessed that, although the revenue of the company is increasing, EBITDA of the company decreasing.
Current ratio of the company is 1.35. This states that the company does not have any liquidity issues.
The company has consistently given dividends from the past 3 years. However, the Dividend per share in FY 2020 was only Rs. 5, less than dividend per share of FY 2019, which was Rs. 8.
In FY 2020, the Company sold its stake in Hifil Chemicals Private Limited to the Joint Venture Partner as Hifil could not commence any business operations for over a decade since its inception.
The Company has established Indo Baijin Chemicals PrivateLimited, a Subsidiary, in the form of a Joint Venture with ShanghaiBaijin Group, China for the manufacture of important raw material. In FY 2020, the joint venture generated Profit (excluding Tax) of Rs. 38.14 Crores, against Rs. 10.91 Crores in FY 2019.
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