Analyst Meet / AGM - Analyst Meet

16-Jul-2013, 06:09
In interaction with Mr. S R Potdar Executive Director

Key highlights

• Excel Industries is into manufacturing of Phosphorous based Agro chemical intermediates and has Plants at Lote & Roha, which are situated in area of 20 acres each.
  
• The outlook for Phosphorous based Agrochemical Intermediates continues to be good given the strong monsoon across almost all parts of the country.

• The production of new pharmaceutical intermediates is scheduled to commence in the 2^nd half of FY'14. The Company is also entering the field of Veterinary Medicines and trial productions are being made. Better clarity will emerge by the end of FY'14.

• The business of Water Treatment Chemicals is facing stiff competition both in domestic and export markets. Margins continue to remain under pressure in this business.

• Beside the core business of Agrochemicals, the company has developed a surplus area at existing office at Jogeswari SV Road area and has ready possession area of about 28000 sq feet. Beside this the company has around 10000 sq feet where they have office premises. The company endeavors to generate regular rental income from these premises.

• The company also has real estate of around 1500 sq feet each at Hyderabad and Ahmadabad, which are given on lease basis.

• During Q4 FY'13, company did a provision of Rs 4.5 crore towards employee expenditure for past years and their retirement benefits. Hence margins and profits were lower.

• Management expects net sales of Rs 450 crore in FY'14. Demand is expected to remain robust in view of better monsoon. Overall, margins likely to improve as better demand, will lead to overall economies of scale advantage and benefit of capex done in the past, will come in FY'14.

• Company by and large imports its raw material and rupee depreciation is definitely hurting the company. In long run, such increase in import costs due to rupee depreciation can be passed on.

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