Insecticides (India) Limited (IIL) has reported a net profit of ₹41 crore for the second quarter ended September 30, down 15 per cent as compared to the corresponding quarter in the previous fiscal.

Its net revenue also plunged to ₹456 crore in Q2FY21, nearly 9 per cent lower than ₹ 503 crore in the same period last year.

“Second quarter of the fiscal year had a varied experience for the agriculture and agrochemicals sector. The quarter was marked with normal monsoon on an average, resulting in adequate soil moisture and improving agricultural activity on one hand, but uneven and excess rainfall in certain parts of India. This has also led to lower pest infestation and reduced frequency of sprays during the quarter," said IIL Managing Director Rajesh Agarwal, in a statement.

“Revenue growth was adversely impacted primarily due to continued focus on cash sales and collection as a part of strategy and limited interaction of regional sales team with the distributor and farmers amidst the Covid-19 crisis. We continue to focus on efficient working capital management, as a result the overall cash conversion cycle has been reduced to 115 days from 184 days in FY2020,” he added.

In light of strong cash flows in the first half of the current financial year, IIL board of directors recommended an interim dividend of 20 per cent, that is ₹2 per share, the statement said.

Related Topics
comment COMMENT NOW