NACL Industries announces Q1FY24 results and strategic expansion
NACL Industries Ltd., an eminent player in the Indian agrochemical market, has released its financial results for the first quarter (Q1) of the fiscal year (FY) 2023-24. In the quarter ending June 30, 2023, NACL reported a total income of Rs. 390.16 Cr, marking an 18% drop from the previous year’s corresponding quarter. The firm’s EBITDA stood at a negative Rs. 29.5 Cr, as compared to the positive EBITDA of Rs. 36.34 Cr from the same period in the previous year. The company’s loss for Q1 ended June 30, 2023, amounted to Rs. 36.6 Cr, against a Profit After Tax (PAT) of Rs. 15.13 Cr in Q1 FY’23.
Despite these financial setbacks, NACL Industries has outlined a strategic expansion plan. The Board of Directors has given the green light for the company to venture into Specialty Materials and Intermediates (including Fluorinated compounds), Specialty Nutrition, and Bioproducts. This diversification targets various sectors, including Agriculture, Healthcare, and Industrial markets. NACL Industries envisages an investment of approximately Rs.1000 crores over the next three years for these new ventures and for expanding its current Manufacturing and R&D facilities.
NACL Industries has also launched two novel Maize Herbicide formulations, “ROZZER” & “TEMBOGUARD,” in Q1 FY’24, with plans for more launches in the upcoming second quarter. Despite a 42% decrease in exports and challenging market conditions, the domestic retail business performed above expectations, decreasing sales revenue to just 16% over the previous corresponding quarter.
The flagship technical plant in Srikakulam (AP) achieved its highest monthly production in April 2023, reaching 1101 MT. Alongside, a new manufacturing line was successfully commissioned for a key “Intermediate,” facilitating more substantial backward integration in the production of Active Ingredients.
Pavan Kumar, MD & CEO, expressed that despite market challenges, NACL Industries is actively implementing measures to strengthen its position. The company is investing in R&D, optimizing supply chains, and managing costs to enhance efficiency and mitigate risks. Despite current setbacks, NACL Industries remains committed to its long-term goals of capacity expansion, portfolio diversification, and customer centrality, confident that these strategic initiatives will lead to improved financial performance in the upcoming quarters and beyond.