Dhanuka Agri,AgriTech India

Dhanuka Agritech has been seeing some extraordinary volumes for the past few days. The reason could be its generous dividend payouts and it receiving a license to make pesticides.  Recently, the company received a 'Licence to manufacture Insecticides' fromm Joint Director of Agriculture (Plant & Protection), Rajasthan for the manufacturing unit of the company situated at Keshwana, Kotputli (Jaipur), Rajasthan. Though it did not give any financial details, the market is happy about the order. Secondly, it declared a second interim dividend of Rs.4/share (FV of Rs.2) or 200% for FY16. Prior to this, in Feb’16, it had declared an interim dividend of Rs.2.50 or 125%. This means total dividend in FY16 surrently stands at 325% or Rs.6.50/share.

On the financial front, for Q3Fy16, on a 15% (YoY) rise in net sales at Rs.206 crore, the net profit rose by a mere 2.5% at Rs.22 crore. This was despite a 243 bps rise in EBITDA margin at 16.95% and EBITDA going up 34% at Rs.35 crore. Its interest outgo came down 114% from Rs.60 crore to Rs.28 crore. The culprit was taxation – it shot up five times from Rs.2 crore to Rs.10 crore. Its net profit for 9MFY16 stands at Rs.79 crore and FY15 net profit is at Rs.106 crore; this means FY16 will more or less end on the same levels.