BWI: Dhanuka Agritech Ltd Q2 FY11-12 Net Profit Up 28.86% at Rs. 20.97 crores

Press release from Business Wire India
Source: Dhanuka Agritech Ltd.
Monday, November 07, 2011 05:03 PM IST (11:33 AM GMT)
Editors: General: Consumer interest, Economy; Business: Agriculture, Banking & financial services, Business services, Financial Analyst, Stock exchanges
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Dhanuka Agritech Ltd Q2 FY11-12 Net Profit Up 28.86% at Rs. 20.97 crores


New Delhi, Delhi, India, Monday, November 07, 2011 -- (Business Wire India) -- Dhanuka Agritech Ltd - Bombay Stock Exchange (BSE: 507717) and National Stock Exchange (NSE: DHANUKA) listed, a leading agrochemical formulation company, has maintained its upward growth trajectory registering a landmark growth of 28.86% increase in its consolidated net profit for the quarter ended September 30, 2011 at Rs. 20.97 crores as against Rs. 16.27 crores for the same period last year.

The firm's consolidated revenue for the September quarter of 2011 stood at Rs. 194.07 crores as against Rs. 169.72 crores for the same quarter last year, up 14.35%. The higher revenue growth is attributed to new capacity expansion and increased market penetration with addition of 884 dealer/distributors for the company's products.

On a sequential basis also, the company registered growth in its quarter-on-quarter consolidated net profit of 107.99% over profit figures of the preceding quarter that stood at Rs. 10.08 crores in the April-June quarter (Q1 FY11-12).

For the six months period ending September 30, 2011, Dhanuka recorded net profit of Rs. 31.05 crores against Rs. 25.02 crore in the corresponding period last year, a growth of 24.07%. Net revenue of the company for the six months ended Sept. 30, 2011 stood at Rs. 288.92 crores compared to Rs. 250.75 crores in the same period in previous fiscal, up by 15.22%.

According to Mr. M K Dhanuka, Managing Director of Dhanuka Agritech Ltd, "Dhanuka has recorded one of its highest quarterly profits and this is backed up by strong revenues, gross profits and EBITDA. The results this quarter demonstrate the strength of our company and are a reflection of strong fundamentals of our business."

"We are well positioned to pursue our strong growth potential and are moving forward with our expansion plans, new product introductions and setting up base in overseas markets to further enhance shareholder value", he added.

Dhanuka has recently floated a 100% wholly owned subsidiary company for starting operations in Bangladesh to do agrochemicals business in the growing market. The company also recently launched 'Banmite' that addresses the need of Tea planters and 'Bombard' for the Paddy growers. The new products will further strengthen their offerings in the markets of East and South India that are leading producers of Tea and Paddy respectively.

Dhanuka Agritech had been ranked for the second consecutive year in the prestigious 'Forbes Asia - 200 Best under a Billion.' The 200 top-performing small and midsized enterprises ranked in The Forbes 'Asia's 200 Best Under a Billion' list highlights the firm having revenues under $1 billion. Earlier the company was assigned "4/5" fundamental grade by CRISIL Equities, raising it from the previous "3/5" grade with a one-year fair value of Rs 109 per share, in its July 11, 2011 report.

With current retail and dealer base of almost 70,000 and 30 offices and warehouses across India, Dhanuka is among the top five Companies in India when it comes to branded sales. The company has long term tie-ups with the leading agrochemical companies around the world like Nissan, DuPont, Sumitomo, Hokko, FMC, Chemtura among others.

Maintaining a consistent record of high growth over the years, for the Financial Year ended on March 31, 2011, Dhanuka recorded net revenue at Rs.48,619.18 lakhs compared to Rs.40752.67 lakhs in the same period in previous fiscal, up by 19.30%.

Dhanuka Agritech Limited is engaged in manufacturing of a wide range of pesticides. The company manufactures a large number of herbicides/weedicides, insecticides, fungicides, plant growth regulators, plant growth stimulants and foliar fertilizers, in various forms - dust, granules, EC, SC and WDG. The Company has its pesticides manufacturing units located at Gurgaon (Haryana), Sanand (Gujarat) and Udhampur (J&K).

Dhanuka has around 80 brands in their portfolio and keeps on adding new brands every year. The highest consumed product is Targa Super and its contribution to the top line is more than 20%, which can be attributed to Co's technical tie-up with Nissan Chemical Industries Ltd., Japan. The top three brands contributing to Co's revenue are: Targa Super, Caldan and Markar.

About Dhanuka Agritech Limited

Dhanuka Agritech Limited is in the business of Agro-Chemicals, fertilizers and Seeds. The company reaches out to more than 10 million farmers with its eco-friendly high quality crop care products. The Agri-Division has a pan-India presence through its marketing offices in all major states in India. It has manufacturing units at Gurgaon, Sanand & Udhampur. It has one of the largest distribution networks in India with over 6700 distributors/ dealers selling to over 70,000 retailers and ultimately benefitting 10 million farmers across India. "Dhanuka" is now the preferred choice of farmers.

Dhanuka Agritech has, in its 30 years of existence in the agro chemicals sector in India, laid special emphasis on eco-friendly formulations, low-dose active pesticides, integrated pest and weed management. Numerous measures taken by the company in the line of educating farmers regarding use of pesticides, directly and through its field force of 'Dhanuka Doctors'; rain water harvesting and adopting better agricultural practices, coupled with an aggressive growth strategy have contributed to the company's growth over the years.


CONTACT DETAILS
Neeraj Atri, Mavcomm Consulting, +91 9811714871
Amir Hashmi, Mavcomm Consulting, +91 9911190972
Amit Jha, Mavcomm Consulting, +91 9312883594

KEYWORDS
CONSUMER, ECONOMY, AGRICULTURE, BANKING, BUSINESS SERVICES, Financial Analyst, STOCK EXCHANGES

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