Best Agrolife (539660) Q4 17/18 earnings summary

Executive summary

• FY18 revenue increased YoY to Rs 12,918.46 lakh standalone and Rs 15,147.02 lakh consolidated; standalone recorded a net loss of Rs 2.34 lakh, while consolidated net profit was Rs 1.24 lakh.

• Consolidated profit before tax rose to Rs 26.05 lakh from Rs 12.92 lakh; standalone PBT was Rs 4.28 lakh versus Rs 3.01 lakh.

• Results include Athena Multitrade following an amalgamation effective from the appointed date of April 1, 2016, affecting comparability with prior periods.

Financial highlights

• Standalone revenue from operations reached Rs 12,918.47 lakh versus Rs 9,915.13 lakh; other income rose to Rs 409.27 lakh from Rs 23.54 lakh.

• Consolidated revenue from operations was Rs 15,147.02 lakh versus Rs 12,689.74 lakh; consolidated PBT was Rs 26.05 lakh versus Rs 12.92 lakh.

• Standalone net loss narrowed to Rs 2.34 lakh from Rs 13.56 lakh; consolidated net profit was Rs 1.24 lakh versus a loss of Rs 19.64 lakh.

• Standalone operating cash flow was negative Rs 3,527.58 lakh; consolidated operating cash flow was negative Rs 4,146.76 lakh.

• Other income included Rs 182.48 lakh profit on investment sales and Rs 155.92 lakh duty drawback; other expenses included a Rs 50 lakh political contribution.

Outlook and guidance

• Directors expected improved FY19 performance; plans included exploring new products and markets using information technology.

• The stated strategy focused on asset-light business models and releasing cash by exiting capital-intensive models, with an aim to improve future returns.