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DIL reports a 115 per cent hike in PAT, releases financial report

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The company recently released a consolidated financial report for Q4FY19 and FY19, registered a 34 per cent hike in net revenue

DIL recently announced the results for the fourth quarter of the current financial year along with the results for the financial year ended 31st March, 2019. The consolidated results also included the results of Fermenta Biotech, a DIL subsidiary in which the company has 91.2 per cent subsidiary. The company reported a 34 per cent hike in net revenue, a 58 per cent in EBITDA which stood at Rs 161.2 Cr, and 227 per cent raise in EPS offer the previous year.

Profit After Tax also grew by 115 per cent to Rs 117.9 Cr.

The Board of Directors have recommended a Final Dividend of 25 per cent, that is, Rs 1.25 per equity share of Rs5 each, subject to approval of shareholders.

“The results have been driven by the continued robust growth in DIL’s subsidiary, Fermenta Biotech. Fermenta Biotech (FBL) is the only manufacturer and supplier of Vitamin D3 (Cholecalciferol) in India and amongst the leading players globally. Apart from Vitamin D3, Fermenta also possesses expertise in integrated biotechnology solutions such as enzymes for antibiotic synthesis and other niche APIs,” the company’s press release stated.

Commenting on the performance, Mr. Satish Varma, Managing Director, Fermenta Biotech said, “We are very proud to achieve a milestone of crossing Rs 100 Crores in Net Profits at FBL. This is the highest ever in the history of the company. We have surpassed our guidance of 25 per cent revenue growth for FY19 at the consolidated level by a huge margin. Vitamin D3 continues to witness strong demand, having reported overall growth in revenues of 39 per cent in FY19 on a YoY basis, with Vitamin D3 for Pharmaceuticals use which is 33.6 per cent of overall revenues witnessing a growth of 54.3 per cent, and Vitamin D3 for Animal Feed use which is 49.8 per cent of overall revenues witnessing a growth of 30.2 per cent.”

Expanding on the future plans for business growth, he added, “Based on the higher demand for Vitamin D3 from Pharmaceuticals as well as Animal Feed segments, we are working on adding incremental manufacturing capacity at our Dahej plant in phases. However, for the next level of growth, we have already started planning for new capex at our recently acquired land parcel at Sayakha, GIDC near Bharuch. We have currently applied for Environmental Clearance for the project and are waiting for the same. The capex at Sayakha will help us to forward integrate into Dietary Nutritional Supplement products which is the natural extension to our Vitamin D3 business.”

Commenting on the other businesses, Varma said, “Our Enzymes manufacturing business also had a strong performance for the year with revenues growing at 140.6 per cent from Rs. 5.7 crores in FY18 to Rs. 13.8 Crores in FY19. This is a highly profitable business once it achieves an optimum scale/size. The upgrade in Credit Rating is on back of improved financial and operations performance of Fermenta and the merger will strengthen DIL’s balance sheet further. We believe with growing awareness of Vitamin D3, we expect the growth in volumes to continue which will help us to grow at a CAGR of 15 per cent to 20 per cent over the next five years.”

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