Q3 FY25 Revenue Up 13% YoY, Margins Impacted by International Pricing Adjustments
Lucknow, India, February 9, 2025: India Pesticides Limited (NSE: IPL, BSE: 543311), a leading agrochemical manufacturer, announced its financial results for Q3 FY25 and the nine months ended December 31, 2024.Key Financial Highlights (₹ Cr)
| Financial Metrics | Q3 FY25 | Q3 FY24 | YoY Growth | Q2 FY25 | QoQ Growth | 9M FY25 | 9M FY24 | YoY Growth |
|---|---|---|---|---|---|---|---|---|
| Total Income | 175 | 155 | 13.0% | 234 | (25.3%) | 633 | 566 | 12.0% |
| Gross Profit | 92 | 84 | 10.0% | 105 | (12.4%) | — | — | 21.5% |
| Gross Margin (%) | 52.7% | 54.1% | — | 44.8% | — | 45.4% | 41.5% | — |
| EBITDA | 29 | 37 | (21.2%) | 39 | (24.9%) | 101 | 95 | 6.3% |
| EBITDA Margin (%) | 16.7% | 24.0% | — | 16.6% | — | 15.9% | 16.7% | — |
| EBIT | 25 | 33 | (26.2%) | 34 | (28.9%) | 87 | 84 | 4.4% |
| EBIT Margin (%) | 14.0% | 21.5% | — | 14.7% | — | 13.8% | 14.8% | — |
| PAT | 16 | 24 | (33.0%) | 26 | (38.0%) | 62 | 60 | 3.5% |
| PAT Margin (%) | 15.5% | 11.1% | — | 10.6% | — | 9.8% | 10.6% | — |
| EPS (₹) | 1.40 | 2.09 | — | 2.25 | — | 5.39 | 5.23 | — |
Performance Analysis
- Revenue Growth: IPL reported a 13.0% YoY growth in Q3 FY25 revenue, reaching ₹175 crore, supported by increased sales volumes across key markets.
- 9M FY25 Revenue: The company recorded a 12.0% YoY increase in total revenue at ₹633 crore.
- Profitability Pressures: EBITDA for Q3 FY25 stood at ₹29 crore, down 21.2% YoY, while PAT declined 33.0% YoY to ₹16 crore due to pricing pressures and increased costs.
- Margins Impacted: EBITDA margin contracted to 16.7% in Q3 FY25 (from 24.0% in Q3 FY24) due to higher freight costs, pricing adjustments in international markets, and increased R&D investments.
- QoQ Revenue Decline: Sequentially, revenue fell 25.3% QoQ, reflecting seasonal demand fluctuations.
Management Commentary
Mr. Anand S. Agarwal, Director, Founder & Promoter, commented:Strategic Outlook & Industry Trends
- Global Agrochemical Demand: The sector remains resilient, with increasing demand for herbicides, fungicides, and insecticides.
- Cost Pressures: Rising freight and raw material costs pose near-term challenges, which IPL aims to mitigate through efficiency enhancements.
- Product Innovation: The company is prioritizing new product development and expanding R&D capabilities to sustain competitive advantage.
Upcoming Earnings Call
Date: Tuesday, February 11, 2025Time: 12:30 PM IST
Dial-in Numbers:
- India: +91 22 6280 1116 / +91 22 7115 8017
- USA: 1 866 746 2133
- UK: 0 808 101 1573
- Singapore: 800 101 2045
- Hong Kong: 800 964 448