Excel Crop

Excel Crop Care posted a very disappointing set of Q1FY18 numbers. Though its revenue for the quarter rose 11% (YoY) at Rs.337 crore, a 49% rise in raw material costs, 15% increase in employee benefits and 20% increase in other expenses pulled down the profits. Consequently, EBITDA was down 8% at Rs.39 crore and margins fell 232 bps to 11.5%.

Net profit came in at Rs.24 crore v/s Rs.35 crore, a fall of 31%; Q1FY17 net profit includes an exceptional income of Rs.8 crore which was profit on sale of non-core assets. Q1, seasonally is weak and we could better performance in Q2 and Q3, its best quarters.

On an equity of Rs.5.50 crore,  EPS is at Rs.22. This is no longer a “Shroff” company; in fact not even an Indian company. 64.97% stake is held by Sumitomo Chemical Company through its Indian subsidiary and the Japanese company. LIC holds 6.58%.