For the third quarter ended December 31, 2021, company reported consolidated total income of Rs.175.3 crore, an increase of 47.0% year-on-year. Consolidated EBITDA and Profit before tax increased to Rs. 44.8 crore and Rs. 33.2 crore respectively, as compared to Rs.18.9 crore and Rs.11.3 crore during same quarter last year. 

For the first nine months ended December 31, 2021, company reported consolidated total income of Rs.408.2 crore, an increase of 4.9% year-on-year. Consolidated EBITDA and profit before tax also increased to 92.3 crore and Rs.62.8 crore respectively, a year-over-year increase of 15.7% and 10.4%.

Commenting on the performance of the Q3FY22, Ashok Hiremath, Managing Director, Astec LifeSciences said, “I am pleased to share with you the financials of Astec LifeSciences for the quarter ended December 31st, 2021. Consolidated total income was Rs.175.3 crore, registering a growth of 47.0% year-on-year. Consolidated profit before tax was Rs.33.2 crore, registering a growth of 194.5% year-on-year.  It was one of our best quarterly performances, supported by favorable product mix, strategic sourcing and good price realizations in both exports as well as domestic markets. Margins improved on the back of improved efficiencies and the reasons stated above.”

Q3 FY22 Business highlights

The robust growth in Q3 was driven mainly by higher sales price realisations and favourable product mix. Consequently, gross margin also improved to 46.5% in Q3FY22 from 35.3% in Q3FY21 while EBITDA margin improved to 25.9% in Q3FY22 from 16.3% in Q3FY21. 

In terms of geography, company recorded growth in income across our key markets. Exports accounted for 64.0% of the total income and grew by 38.6% year-over-year. Domestic sale was 36% of total sales and grew by 73.4% year-over-year.

Commercial production at our new herbicide plant started in August 2021. The plant is operating satisfactorily and we expect to see good pickup in CRAMS business in Q4.

We are on track to introduce 4 new products in CMO and 1 in enterprise segment in current financial year. 

The work on new R&D centre had commenced in Q3FY22 and we expect it to be operational by Q3FY23.

9M FY22 Business highlights

The growth in first nine months of FY22 was driven by combination of operational efficiencies, moderate volume growth and higher sales price realisations.

Exports segment sales recorded 6.6% growth while domestic segment recorded 4.8% sales growth as compared to same period last year. The share of exports in total income remained largely unchanged at 48.9 % in 9M FY22 as compared to last year.

Gross margin improved to 45.0% in 9M FY22 from 38.2% in 9M FY21 supported by favourable product mix and backward integration benefits in addition to higher realisations. However, increase in EBITDA margin was limited due to higher fixed overheads on account of commissioning of herbicide plant and normalization of business activity over the previous year.