About Indofil Industries Unlisted Share 1. Indofil Industries Limited (Indofil) offers solutions that help farmers across the world to improve productivity and yield to address the challenges of feeding a growing population. So, it is an agro-chemical and speciality chemical company. 2. It offers an integrated portfolio of patented and co-branded products along with formulations including fungicides, insecticides, herbicides and plant health and nutrition for a wide variety of crops. 3. Indofil is one of the few producers and suppliers of key speciality chemicals used by the plastic and coating industry in India. Manufacturing Capacities 1. Dahej Gujarat Plant (unit 1) - 33,600 Tonnes 2. Synthesis Plant, Dahej, SEZ, Gujarat (Unit-2) - 4000 Tonnes 3. Innovative Solutions Plant, Dahej, Gujarat (Unit-3) - 38000 Tonnes 4. EBDC Plant, Dahej, GIDC, Gujarat (Unit-3) - 35000 Tonnes Revenue Mix in FY202-21 (Geography) 1. India = 55% 2. Europe = 17% 3. South-America = 12% 4. Rest of the World = 20% Revenue Mix in FY20-21 (Products) 1. Agro-Chemicals = 88% 2. Innovative Solutions = 12% Financial Performance Review in FY20-21 1. Despite Covid-19 situation, total Income grew from 2,236 crore in FY 2019-20 to 2,441 crore in FY 2020-21, registering a phenomenal year-on-year growth rate of 9%. In the domestic and international business, revenue crossed 1,000 crore each. 2. EBITDA improved by 70% YoY from 274 crore in FY 2019-20 to 467 crore in FY 2020-21. During the year under review, the EBITDA margin stood at 19% against 12% in FY 2019-20. 3. Debt has been reduced to ~650 Crores from ~1000 Crores last year. So, significant debt reduction has been done by the company. 4. Current ratio is greater than 1.5x shows Indofil has strong liquidity position in short-term. 5. Indofil has excellent profitability ratio of 25% of ROCE. 6. In FY20-21, Indofil has generated a free cash flow of ~700 Crores. Valuation of Indofil Industries Unlisted Share CMP of Indofil Industries = 975 Total Outstanding Shares = 2.135 Mcap = ~2000 Crores Average EPS (3 years) = 50 P/E = 20x Peer Comparison 1. Dhanuka Agritech (FY20-21 Financials) (i) Revenue= 1387 Cr (ii) PAT= 211 Cr (iii) EPS= 44 (iv) P/E= 20x (v) MCap= 4000 Cr 2. Rallies India (FY20-21 Financials) (i) Revenue= 2400 Cr (ii) PAT= 229 Cr (iii) EPS= 12 (iv) P/E= 25 (v) MCap= 5400 Cr Future Outlook 1. Indofil has made significant investments in new product registrations in Europe and Brazil. It is expected to contribute towards business revenue from FY 2022-23. 2. Indofil is also looking at similar possibilities in Philippines and Bangladesh to strengthen the existing business there. 3. Indofil operates in both the B2B and B2C business segments and the international markets have witnessed a significant rise in individual consumers. It is finding opportunities to expand the B2C business model to international markets, but the uncertainty caused by the pandemic last year has delayed it. Annual Report 2021