Punjab Chemicals & Crop Protection Limited (PCCPL) A Clear Runway Ahead!

AR21 notes

Miscellaneous

  • CRAMS revenue grew by 40%, contributed 64% of revenues (~434 cr.)
  • 3 molecules were approved, expect commercialization of 3 molecules in H2FY22
  • Plans to manufacture agrochemicals in Lalru which is currently used for chemicals
  • Received show cause notice from SEBI for alleged non-disclosure of certain transactions undertaken in Argentina. Company and directors have settled with SEBI by paying 21.67 lakh and 14.45 lakh respectively
  • Vinod Kumar Gupta has been appointed as CEO on 08.02.2021
  • Spent 49.9 lakh in CSR (against required amount of 45 lakh + 3.6 lakh unspent from FY20)
  • Company developed local sources for 6 critical raw materials
  • Number of employees: 1176 (vs 1089 in FY20) + 597 on contractual basis
  • Share price (low): 300, (high): 1028.5
  • Number of shareholders: 14’451
  • Median salary: 4.32 lakh (vs 4.36 lakh in FY20)
  • Management remuneration: 4.13 cr. (1.05 cr. was commission)
  • R&D: 1.97 cr. (vs 1.18 cr. in FY20). Out of this, 24 lakh was capitalized (vs 21 lakh in FY20)
  • Implemented SAP B1 Hana Ver 10, an integrated ERP system across all plant and office locations
  • Customer advances: 33.48 cr.
  • Revenue from top 2 customers was 288.32 cr. (vs 206.6 cr. in FY20) and 58.43 cr. (vs 86.23 cr. in FY20)
  • Contingent liabilities: 76.84 cr. (vs 3.3 cr. in FY20). Out of this, 76.68 cr. was in relation to income tax matters
  • Auditor remuneration: 25 lakh (vs 33 lakh in FY20)

Revenue breakup:

  • Agrochemical division Derabassi: 513 cr. (vs 391 cr. in FY20)
  • Specialty chemical division Lalru: 111 cr. (vs 127 cr. in FY20)
  • Industrial chemical division Pune: 52 cr. (vs 37 cr. in FY20). Was at 95% capacity utilization
  • Out of the above, job work was 46 cr. (vs 29 cr. in FY20)

Geographical revenue breakup:

  • India: 242.26 cr. (vs 195.35 cr. in FY20)
  • EU (including UK): 219.1 cr. (vs 174.62 cr. in FY20)
  • Japan: 73.48 cr. (vs 88.7 cr. in FY20)
  • Others: 130 cr. (vs 79.78 cr. in FY20)

Banking relationships

  • RBL bank + SVC Cooperative bank
  • Availed moratorium on interest payments during covid period
  • Term loan from RBL bank is at 11.25% interest rate
  • Term loan from SVC Cooperative bank is at 9.7% interest rate
  • Vehicle loan is from Indostar Capital Finance at 11.03%
  • ICDs were 15.85 cr. (vs 27.85 cr. in FY20) at 12.75-16.50% interest rate

Total income of SD Agchem (Europe) NV was 11.36 cr. (vs 9.14 cr. in FY20) with profit after tax of -1.55 cr. (0.89 cr. in FY20)

Fire incident in 2019

  • Received major part of the claim against the loss of property with no disputes by Insurance company
  • Damaged plant has been rebuilt and operationalized at a different location with improved safety and protection

Disclosure: same as before

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