Regd. 8.

Corporate Office; 401-402, lusa Tower

Azadpur Commercial Complex, Delhi -110033
Telefox: +91 11 27679700-05 (6 lines)
email: info@insecticidesindia.com
www.insecticidesindia.com
(IN : l65991 Dl1996PlC083909

insecticides (INDIA) LIMITED

Ref: I1L/SE/2019/131112
November 13,2019

The Manager

Listing Compliance Department Listing Compliance Department

BSE Limited National Stock Exchange of India Limited
(Through BSE Listing Centre) (Through NEAPS)

Scrip Code: 532851 Symbol: INSECTICID

Sub: Investor Presentation Q2 - FY2020

Dear Sir/Madam,

Please find the enclosed Earning Presentation for the Quarter and Half Year Ended September
30,2019.

This is for your information and record.

Thanking You,
Yours Truly
For Insecticides (India) Limited

~r:-f~
Sandeep Kumar
Company Secretary
Encl : As Above
(BSE: 532851 NSE: INSECTICID)

Q2 FY2020
Earnings Presentation
 Q2 FY2020 Highlights

Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn)

9.8% 4.1% 13.6%

5,031

720 488
430

4,583
692
9.4% 9.7%

15.1% 14.3%

Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20

EBITDA Margin (%) PAT Margin (%)

Quarterly Highlights:

• Higher contribution from Maharatna products which registered 7.7% growth y-o-y

• Higher realization in the Maharatna categories driven by successful recently launched products such as Hercules, Sofia, Xplode and
Hakama

Note: EBITDA does not include other income

2
 H1 FY2020 Highlights

Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn)

10.8% 8.3% 10.1%

8,615
7,773
1,352 847
1,248 770

16.1% 15.7% 9.9% 9.8%

H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20

EBITDA Margin (%) PAT Margin (%)

Half Year Highlights:

• Higher contribution from Maharatna products which registered 5.8% growth y-o-y, further supported by growth in other branded products
which registered 7.5% growth

• Higher realization in the Maharatna categories driven by successful recently launched products such as Hercules, Sofia, Xplode and
Hakama

Note: EBITDA does not include other income

3
 Products Freshness Index
Proven track record of successful new product launches exhibits IIL’s strong R&D capabilities and
continues to provide competitive edge
535
478
70
420 407
Revenue from new product launches (Rs. Cr.) 66
89
15
131 71
299 148 90
11 40
33 13 9
221 38 10 45
34 84
172 30 89 66 41
65 6
30
60
69 36

172 192
44 166 155
131 125
103
44

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 H1 FY20

New Products launched

5 5 3 2 5 5 8 5
during the year
% of Revenue
7.1% 19.9% 22.9% 30.3% 37.9% 43.1% 44.9% 47.3%
from Operations

4
 Management Commentary

Commenting on the results, Mr. Rajesh Aggarwal, Managing Director, said:

“The domestic economy in Q2 FY2020 continues to face headwinds which were present at the beginning of fiscal year.
Due to broad based slowdown in rural demand, the impact of slowdown was visible in agrochemicals sector as well.
Monsoon during the last quarter was scattered, with heavy rainfalls in some parts of the country impacting agriculture
cycle. Sales growth was mixed as there was a 20-day delay in the season as a result of prolonged crop cycle and was
adversely impacted due to continuous rainfall and lower pest infestation. Despite the challenging business environment,
Insecticides India delivered growth in revenues and profitability owing to our strong product portfolio and greater market
acceptability of products among farmers.

I am pleased to report that the Company recorded revenue from operations of Rs. 503 crores in Q2 FY2020, representing a growth of 9.8% on a
Y-o-Y basis. The Company delivered EBITDA of Rs. 72 crores in Q2 FY2020, an increase of 4.1% with margins of 14.3%. Net profit for the quarter
was Rs. 49 crores, an increase of 13.6% with margins of 9.7%.

Our focus on R&D initiatives have resulted in the launch of five new products during the H1 FY2020. However, three of our key new products
which were expected during the period got delayed due to pending regulatory approvals and is expected to be launched in the coming period. We
now have 12 products approved under 9(3) category. Our new product launches have high acceptability in the market due to our strong value
proposition, widely spread distribution network and farmer centric approach.

As the sowing period extended to October combined with benefits of PM Kisan scheme, it is expected demand picks up for Rabi crop in coming
period. Our objective to improve product mix through new innovative product launches and ongoing geographic expansion for both domestic and
exports market will help us in achieving our full year targets and implement IIL strategic plan which will generate value for all our stakeholders.”

5
 Growth Strategy

Optimum Capital Structure and

Phase out Generic Products Backward and Forward Integration
Operational Efficiency
• Gradual reduction in the sale of • Moving on the strategic path of • Strong cash flow generation
Generic products (high volume-low backward and forward integration • Capex of Rs. 1 bn in next 2-3 years for
margin) for fiscal year is on expected • Capitalize on the Make in India synthesis facilities in Gujarat and
lines initiative Rajasthan
• Introduction of new products in the • Will result in better margins across
Maharatna category technicals and formulations

R& D will results in New product

Focussed Approach on Biologicals Exports
launches
• Focus on in-house R&D and • Developed and commercialized VAM • Working on registration in new
international partners to launch new (Vaslcular Arbuscular Mycorrhiaze) countries with 100+ export agreements
products • Developed and commercialized soil • Expanding in new geographies:
• Launched 5 new products during H1 energizer, Kayakalp Exporting to 20+ countries
FY2020 • Development of 3-4 new biological Expand to 25+ countries by the end of
• Expected 10 new products in full year products is in pipeline FY2020
FY2020

6
 Business Overview

Insecticides India - A Leading Agro Chemicals Manufacturing Company

Engaged in the manufacturing and marketing of crop-protection products

Rs. 861 Cr 60,000+

Four product categories: Insecticides, Herbicides, Fungicides, H1 FY20 Sales Retail Outlets
Biologicals and Plant Growth Regulators (PGRs)

Distribution network of 375+ SKUs, 5,000+ distributors

and 60,000+ retail networks 100+ 21
Formulation Products Technical Products
Total 12 registration approved under 9(3)

4 R&D centers – Developing a comprehensive range of

21+ 5
Maharatna Products H1 FY2020 New product
agro chemical products
launches*
State-of-the-art manufacturing facilities in Chopanki (Rajasthan), Samba &
Udhampur (Jammu & Kashmir) and Dahej (Gujarat)
10 1,250+
Full Year Target of New Employees
Owner of the prestigious Tractor brand, highly popular among the farmers Product launches*

Note: *New products also include new Maharatna Products

7
 Capabilities and Geographical Presence

R&D Manufacturing
• NABL QC Labs • 5 Formulations plant
• In-house R&D Centre 01 02 • 2 Technical synthesis plants
• JV with OAT Agrio Co. • 1 Biological manufacturing plant*
Japan for dedicated R&D
Centre

Development Marketing
& Training 04 03 • Sale & market development
• Branding
• Emphasis on field activities • International tie ups and
• Farmer awareness collaborations
• Sales force training • Evolving media mix

*Under toll arrangement

8
 Leading Maharatna Brands

PULSOR : Systemic fungicide with preventive and curative action; controls Rice Sheath Blight
LETHAL : Organo-phosphorus group of insecticides; controls insects through contact, stomach and vapour action
GREEN LABEL : Specialist of weed control in paddy; in line with ‘Make in India’
HERCULES Hercules is a broad-spectrum insecticide for control of sucking pests in crops like Cotton, Chillies etc.
HAKAMA : Post-emergence selective herbicide; controls narrow leaf weeds across leaf crops
XPLODE : Naturally derived insecticide; controls all Lepidopteran stages
AIKIDO : Launched in technical collaboration with Nihon Nohyaku, Japan, providing complete protection from brown plant hoppers, white
plant hoppers and leaf folder to paddy crop
SOFIA : Broad spectrum fungicide which gives complete protection from various diseases in different crops
MYCORAJA : Bio product equipped to promote healthy growth and greater nutrient absorption in a wide range of crops, oilseeds and cotton
HIJACK : Non-selective systemic herbicide, control annual and perennial weeds
FLITE : Broad spectrum non-systemic herbicides; effective against annual, perennial and broad leaf / grassy weeds

Aggregate Installed Capacity

19,400 KLPA 75,750 MTPA 18,770 MTPA 13,800 MTPA
Liquid Granules Powder Active Ingredient & Bulk

9 Note: Thimet and Nuvan production has been stopped from 31 Dec 2018, in compliance of Government Regulations
 Research & Development
State-of-the-art in house R&D centre established in 2005, augmented by product innovation R&D
center, formulation R&D centre and biological R&D centre
• Approved by DSIR, Ministry of Science and Technology 7 Patents Received
• Working on new formulations and new combination products

Formulation R&D Centre 24 Patents Pending

• Development of new generation formulations
• Focus on cost reduction, customer friendly and environment safe products
59+ New Processes Developed
Biological R&D Centre
• Equipped with bio assay and product development facilities
• Looking forward to development of 3-4 new biological products 60+ Scientists in R&D Centres
Product invention R&D center: A unique initiative of product discovery in India by forming a JV with
Japanese company, OAT Agrio Co. Ltd.
• Equipped with the latest machines and equipment's like NMR, Lab set designed by Kewanee, USA
• Lead by the internationally renowned scientists with more than 25 years of experience
• One of its kind breeding centers, bio assay rooms and spray cabinets

Technical collaboration with international partners for manufacturing and marketing innovative
products:
• AMVAC (USA), Momentive (USA), Nissan Chemical Corporation (Japan), Nihon Nohyaku (Japan)

Medium Term: To launch latest

Short Term: Launch new generic Long Term: Launch proprietary
technology products through
products going off-patent (Reverse discovery products (chemicals and
international partners; launch new
Engineering) biologicals)
combination products
10
 Financial Performance

Q2 Y-o-Y Q1 Q-o-Q Half Year Y-o-Y

(Rs. Million) FY2020 FY2019 Growth(%) FY2020 Growth(%) FY2020 FY2019 Growth(%)
Operating Revenue 5,031 4,583 9.8% 3,584 40.4% 8,615 7,773 10.8%
Other Income 18 3 12 29 5
Total Revenue 5,049 4,586 10.1% 3,595 40.4% 8,644 7,777 11.1%

EBITDA 720 692 4.1% 631 14.1% 1,352 1,248 8.3%

EBITDA Margin (%) 14.3% 15.1% 17.6% 15.7% 16.1%

EBIT 678 646 5.0% 584 16.1% 1,262 1,155 9.3%

EBIT Margin (%) 13.4% 14.1% 16.2% 14.6% 14.9%

Profit After Tax (PAT) 488 430 13.6% 359 35.8% 847 770 10.1%
PAT Margin (%) 9.7% 9.4% 10.0% 9.8% 9.9%

Basic EPS 23.61 20.79 13.6% 17.39 35.8% 41.00 37.24 10.1%

11 Note: EBITDA Margins are calculated on Operating Revenue

 Leverage Profile

(Rs. Million) FY2017 FY2018 FY2019 H1 FY2020

LTM Sep 2019
Long Term Debt 283 145 68 34

Short Term Debt 2,060 968 2,952 2,972

Total Debt 2,342 1,112 3,020 3,006 17.6%

Return on Equity
Cash & Cash Equivalents 68 196 89 91

Net Debt 2,274 917 2,931 2,915

Total Equity 4,645 5,476 6,613 7,407

17.2%
Return on Capital Employed
Net Debt/Equity 0.49x 0.17x 0.44x 0.39x

Notes:
1. Long Term Debt also includes Current Maturities of Long Term Debt
2. Total Debt excludes Vehicles Loans
3. Capital Employed = Total Debt + Total Equity
12
 Financial Trends - Annual

Strong EBITDA and PAT growth with margin improvements every successive years

Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn)

6.4% 26.4% 45.7%

CAGR CAGR CAGR

11,919 1,856 1,224

10,733
9,882 9,942 1,478
840
1,114
920 597
15.6% 396
13.8% 10.2%
11.2%
6.0% 7.8%
9.3% 4.0%

FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19

FY16 FY17 FY18 FY19 PAT Margin (%)
EBITDA Margin (%)

13
 Key Ratios

Consistently improving return ratios and generating wealth for shareholders

Return on Equity Return on Capital Employed Net Debt/Equity Ratio

18.5%
20.2%
15.3% 0.5x 0.5x
17.4% 0.4x
12.9% 14.6%
12.5%
9.8%

0.2x

FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19

14
 Financial Trends - Quarterly

Revenue from Operations (Rs. Mn) EBITDA (Rs. Mn) Profit after Tax (Rs. Mn)

9.8 % 4.1 % 13.6 %

Y-o-Y Y-o-Y Y-o-Y

5,031
4,583 720
692 488
631
3,584 430
359
286
2,157 1,989 320 289 17.6% 169 14.3%
15.1% 14.8% 14.5% 14.3% 10.0% 9.7%
9.4%
7.8%

Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20

EBITDA Margin (%) PAT Margin (%)

15
 Segment Reporting – H1 FY2020

Gross Sales by Product Category Gross Sales by Segment

3% 2%
10% 22%
Insecticides
30% B2C
57% Herbicides
B2B
Fungicides 76%
Exports
PGR

Gross Sales vs Internal Consumption Breakdown of Top Seller Range in B2C

Sales
45% 42%
Maharatna
55%
Internal 58% Products
Consumption Other Products

16
 Segment Reporting – H1 FY2020

Gross Sales by Segment (Rs. Mn) Gross Sales by Emphasized Product Category (Rs. Mn)

+6.6% -1.3% +38.5% +5.8% +7.5%

6,973 3,701
6,541 3,497
3,272
3,044

2,062 2,035

160 222

B2C B2B Exports Maharatna Products Other Products

H1 FY19 H1 FY20 H1 FY19 H1 FY20

• Growth in sales of B2C and exports segment supported • Sale of Maharatna products remained resilient;
the revenue growth, while B2B sales was down due to contributing 58% towards B2C revenue
subdued economic environment
• Other branded products registered a strong growth of
• B2C increased from Rs. 6,541 Mn in H1 FY19 to Rs. 7.5% offsetting marginal lower sales from select
6,973 Mn in H1 FY20, a growth of 6.6% on Y-o-Y basis Maharatna products

17
 Recent Announcements

IIL Launches ‘Kunoichi’, a Patented Miticide of Japan’s Nissan Chemical, at Hyderabad

• A product registered under 9 (3) category

• Kunoichi is invented and developed by Nissan Chemical Corporation, Japan and will be
marketed in India exclusively by the Insecticides (India) Ltd.
• The miticide comprises Cyenopyrafen 30% SC, a novel molecule effective on different
species of mites and has an ovicidal property, providing a long, effective control on mites
affecting Chilles and vegetables.
• The molecule is already registered in other parts of the globe such as Japan, South Korea,
Colombia, and Ecuador.

Commenting on the business development, Mr. Rajesh Aggarwal, Managing Director,

Insecticides India said:

“IIL is proud to be a partner of Japan’s leading company Nissan Chemical Corporation since
2012 and with the launch of Kunoichi, we are brining one more research-based international
technology patented product to the farmers after the huge success of other products of Nissan in
the Indian market. The composition of the product is apt for the crops that grow in India like
chilies and premium crops such as apple that constitute the base of the burgeoning Indian
export. Kunoichi is a rather promising product that we hope will benefit lacs of farmers across
the country. It is very effective against all types of mites and starts its action as quick as 6
hours. It is the latest and most effective miticide available in the world today,”
18
 FY2020 Outlook

Opportunities
India is currently the world’s fourth largest producer of Quarterly Outlook
agrochemicals. Favourable manufacturing opportunities for Prospects of rabi sowing looks bright due to better soil
agrochemical companies in India moisture on account of good monsoon and full reservoirs, but
the general economic slowdown might impact agri-inputs

Monsoon
Initial delay and deficiency in the south-west monsoon has
been mitigated by the resurgence of rains during July- Exports Surge
September, comfortable reservoir levels predict normal rabi The Company will evaluate and expand in new growth
sowing opportunities in the exports market

Public Policy
Increase in the Minimum Support Prices for Rabi Crops of 2019-20, disbursal
under Pradhan Mantri Kisan Samman Nidhi and several other incentives will
provided the necessary growth to agriculture sector which has reached a stage of
high commercialization

19
Disclaimer

This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to
the implementation of strategic initiatives, and other statements relating to Insecticides India Limited (“Insecticides India” or the
Company) future business developments and economic performance.
While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a
number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our
expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in
currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third
parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.
Insecticides India undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or
circumstances.

For further information, please contact:

Sandeep Aggarwal Ravi Gothwal / Vikas Luhach

Chief Financial Officer Churchgate Partners
Insecticides India Ltd.

+91 11 2767 9700 +91 22 6169 5988

sandeep@insecticidesindia.com InsecticidesIndia@churchgatepartners.com
Insecticides (India) Ltd.
(CIN: L65991DLl996PLC083909)
401-402, Lusa Tower
Azadpur Commercial Complex
Delhi - 110033

Telefax: +91 11 - 27679700 - 04 (5 Lines)

info@insecticidesindia.com
www.insecticidesindia.com