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Aimco Pesticides - Growing & Debt-Free Agrochemicals

Was looking at results. Pretty good growth in topline and decent profitability…perhaps finally the outcome of the capex done over last couple of years.

Given the pref allotment by promoters at higher price…anyone has insights on same?

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not sure what kind of insights you mean ? The company seems to be on the right path …first it successfully came out of BIFR and now growing without any debt… having met the management, my first impression was that they want to make it big but without taking too much risk (given the lost decade due to financial difficulties). The impression which was given to me is that there’s a lot of scope on OPM expansion going forward.

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i meant as they were raising money…there might have been details around capex and expansion plans going forward?

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Not much details were given as mentioned here. The objects of issue simply said its for capex…i think looking at the before and after balance sheet they roughly doubled their capacity.

@j2eeprofession_ and @ayushmit

Would you be able to tell why margins have been contracting.

I see Gross and Net Profit Margins were higher in 2017 (more than 10% odd) but in last two years they have been at 5-6% odd…

Is it due to crude?

I think the issue is the other income part in the last 2 quarters. If this other income is part of normal operations (maybe recognized as other income due to forex hedging etc) then the margins are inline with before. From what I could understand - a large part of turnover growth came from couple of products which were high in value but low on margins. But the company has been increasing the product portfolio.
Lets see if they can grow from here with better margins.

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some part of OI is duty drawback and other export incentives which earlier got reported along with sales

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Excellent result posted by Aimco.

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Agree… amazing numbrrs