Ladies and gentlemen, good day and welcome to the Q2 and H1 FY 2027 conference call of Best Agrolife Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal for an operator by pressing star and then zero on your touchtone telephone. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call.
The statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. Today from the management side, we have with us Mr. Vimal Kumar, Managing Director, Mr. Surendra Sai, Executive Director, Mr. Sanjeev Bajaj, Chief Financial Officer, and Mr. Vikas Jain, Vice President Business Operations. I would now like to hand the call over to Mr. Vimal Kumar for his opening remarks. Thank you and over to you, sir.
Thank you. Good afternoon, everyone. First of all, [Non-English content] earning call [Non-English content] Thank you for taking out time to join us. [Non-English content] company [Non-English content] performance [Non-English content] share [Non-English content] ground level [Non-English content] market [Non-English content] challenges [Non-English content] business [Non-English content] direction [Non-English content] numbers [Non-English content] quarter two financial year 2027 [Non-English content] total revenue INR 407 crore[Non-English content] quarter [Non-English content] INR 517 crore [Non-English content] H1 FY 2027 [Non-English content] revenue INR 803 crore [Non-English content] period [Non-English content] INR 898 crore [Non-English content] Revenue [Non-English content] profitability [Non-English content] improvement [Non-English content]
Quarter two [Non-English content] EBITDA [Non-English content] INR 78 crore [Non-English content] INR 101 crore [Non-English content] in spite of total revenue. H1 [Non-English content] EBITDA [Non-English content] INR 178 crore [Non-English content] Quarter two [Non-English content] PAT INR 39 crore[Non-English content] INR 57 crore [Non-English content] H1 [Non-English content] PAT INR 59 crore[Non-English content] INR 98 crore [Non-English content] profitability [Non-English content] improvement [Non-English content] patented product [Non-English content] margins, cost discipline [Non-English content] challenging monsoon [Non-English content] planning [Non-English content] product portfolio [Non-English content] generic product [Non-English content] patented [Non-English content] differential product [Non-English content] focus [Non-English content]
[Non-English content] direction [Non-English content] focus [Non-English content] short-term performance [Non-English content] sustainable and profitable business [Non-English content] market condition [Non-English content] performance [Non-English content] season [Non-English content] situation [Non-English content] monsoon [Non-English content] pattern [Non-English content] uneven [Non-English content] areas [Non-English content] area [Non-English content] areas [Non-English content] gaps [Non-English content] season, [Non-English content] crop [Non-English content]
[Non-English content] delay [Non-English content] areas [Non-English content] soil moisture [Non-English content] irrigation facility limited [Non-English content] overall demand [Non-English content] product category [Non-English content] generic products [Non-English content] competition [Non-English content] pricing [Non-English content] pressure [Non-English content] factors [Non-English content] quarter [Non-English content] business environment challenging [Non-English content] crop protection products [Non-English content] demand [Non-English content] idea [Non-English content] situations [Non-English content] targeted product placement [Non-English content] farmer education [Non-English content] manage [Non-English content] regional markets [Non-English content] regions [Non-English content] sales [Non-English content] market condition [Non-English content]
[Non-English content] Central India [Non-English content] uneven pattern [Non-English content] growth [Non-English content] Soyabean, cotton, groundnut, maize, paddy [Non-English content] North India [Non-English content] situation [Non-English content] areas [Non-English content] temperature [Non-English content] soil moisture [Non-English content] dams [Non-English content] availability [Non-English content] region [Non-English content] paddy acreage [Non-English content] pressure [Non-English content] Same [Non-English content]
[Non-English content] water availability [Non-English content] condition [Non-English content] conditions [Non-English content] cotton, paddy, chili, groundnut [Non-English content] crop protection product [Non-English content] demand [Non-English content] demand [Non-English content] pattern [Non-English content] Paddy [Non-English content] early leaf folder [Non-English content] problems [Non-English content] areas [Non-English content] spray product [Non-English content] demand [Non-English content] support [Non-English content] fungal disease [Non-English content] pressure [Non-English content] fungicide segment [Non-English content] demand [Non-English content] strong [Non-English content] cotton acreage [Non-English content] product demand [Non-English content] cotton [Non-English content] guar [Non-English content] other crops [Non-English content] sowing [Non-English content]
Overall [Non-English content] season [Non-English content] demand [Non-English content] weather conditions, sowing pattern, irrigation [Non-English content] availability [Non-English content] farmers [Non-English content] spending pattern [Non-English content] combined effect [Non-English content] factors [Non-English content] closely monitor [Non-English content] ground level [Non-English content] feedback [Non-English content] planning [Non-English content] revenue [Non-English content] results [Non-English content] manage [Non-English content] challenging market environment [Non-English content] product [Non-English content] market [Non-English content] introduce [Non-English content] product.
[Non-English content] market [Non-English content] response [Non-English content] period [Non-English content] patented product Midcotin paddy segment [Non-English content] launch [Non-English content] Midcotin fungicide [Non-English content] insecticide [Non-English content] combination [Non-English content] product [Non-English content] ground level [Non-English content] result [Non-English content] India [Non-English content] paddy [Non-English content] response [Non-English content] September [Non-English content] powerful insecticide SECTOR brand [Non-English content] SECTOR [Non-English content] launch [Non-English content] pomegranate [Non-English content] chili [Non-English content] sucking [Non-English content] lepidopteran pest [Non-English content] management [Non-English content] market [Non-English content] introduce [Non-English content] season [Non-English content] closely monitor [Non-English content]
[Non-English content] season [Non-English content] demand [Non-English content] depend [Non-English content] soil moisture [Non-English content] availability [Non-English content] irrigation water [Non-English content] available [Non-English content] farmer agriculture input [Non-English content] confidence [Non-English content] stage [Non-English content] market recovery [Non-English content] strong assumption [Non-English content] actual ground situation [Non-English content] closely assess [Non-English content] planning [Non-English content] experience [Non-English content] system [Non-English content]
[Non-English content] innovation [Non-English content] intellectual property portfolio [Non-English content] patented product portfolio [Non-English content] strategy priority [Non-English content] Fluxametamide, [Non-English content] insecticide [Non-English content] powerful combination Fluxametamide, Abamectin, Trifloxystrobin [Non-English content] patent grant [Non-English content] intellectual property portfolio [Non-English content] important [Non-English content] differential product development [Non-English content] Ronfen, Nano Urea [Non-English content] Fluxametamide, Flonicamid [Non-English content] Abamectin [Non-English content] combination [Non-English content] foreign patent application [Non-English content] progress [Non-English content]
[Non-English content] applications U.A.E., Vietnam, Sri Lanka, Philippines, Egypt [Non-English content] markets [Non-English content] examination stage [Non-English content] call [Non-English content] different-different stages [Non-English content] product [Non-English content] country [Non-English content] register [Non-English content] examination stage [Non-English content] countries [Non-English content] quarter [Non-English content] categories [Non-English content] 13 CIB registration [Non-English content] International business [Non-English content] area [Non-English content] progress [Non-English content] period [Non-English content] Sudan [Non-English content] 47 metric ton [Non-English content] shipment [Non-English content] Nepal [Non-English content] patented product Ronfen [Non-English content] registration [Non-English content] product [Non-English content] registration [Non-English content] submit [Non-English content]
Mexico [Non-English content] Lambda [Non-English content] registration [Non-English content] technical product [Non-English content] registration process [Non-English content] international markets [Non-English content] opportunities [Non-English content] Taiwan [Non-English content] product approval [Non-English content] final stage [Non-English content] product review process [Non-English content] Sri Lanka [Non-English content] patented product [Non-English content] samples [Non-English content] initial approval [Non-English content] testing [Non-English content] trial [Non-English content] stage [Non-English content] Global expansion [Non-English content] Brazil में एक step-down subsidiary incorporate [Non-English content]
[Non-English content] South America market [Non-English content] agrochemical [Non-English content] agriculture product [Non-English content] business [Non-English content] expand [Non-English content] entity [Non-English content] wholly-owned subsidiary Best Agrolife Global [Non-English content] incorporate [Non-English content] developments international markets [Non-English content] presence [Non-English content] important step [Non-English content] focus [Non-English content] opportunities [Non-English content] actual business [Non-English content] convert [Non-English content] financial year [Non-English content] half [Non-English content] revenue [Non-English content] pressure [Non-English content]
[Non-English content] profitability [Non-English content] improvement [Non-English content] patented portfolio [Non-English content] progress [Non-English content] long-term direction [Non-English content] confidence [Non-English content] disciplined [Non-English content] business [Non-English content] fundamentals [Non-English content] strong [Non-English content] growth opportunities [Non-English content] focus [Non-English content] long-term value create [Non-English content] Thanks all from my side. Thank you once again for joining us today. [Non-English content] CFO Mr. Sanjeev Bajaj [Non-English content] invite [Non-English content] company [Non-English content] financial performance [Non-English content] Thank you very much.
Thank you, Vimal sir, for taking us through the business update. Good afternoon, everyone. I will take you through the financial performance of Best Agrolife Limited for quarter two, financial year 2027 and H1 financial year 2027. Let me begin with revenue. Revenue from operations for quarter two financial year 2027 stood at INR 407 crore, compared with INR 517 crore in quarter two financial year 2026, representing a year-on-year decline of approximately 21%. For H1 financial year 2027, revenue was INR 803 crore, compared with INR 893 crore in the corresponding period last year, a decline of approximately 11%.
The revenue performance was affected by the challenging kharif season, including irregular rainfall, delayed and uneven sowing, reduced crop acreages in certain markets, changes in spray schedule, and cautious farmer spending. These conditions affected demand across several crop protection categories. Also, as a strategy, the company is focusing on the patented portfolio and has been gradually reducing generic products from the overall portfolio. However, profitability improved significantly during the quarter and the first half of the year.
Gross margin for quarter two financial year 2027 stood at INR 182 crore, compared with INR 170 crore in the corresponding quarter last year. Gross margin as a percentage of revenue improved to 45%, compared with 33% in the corresponding quarter last year. For H1 financial year 2027, gross margin was INR 328 crore against INR 280 crore in H1 financial year 2026, an increase of approximately 17%. Gross margin percentage improved to 41%, compared with 31% in the previous year. EBITDA for quarter two financial year 2027 increased to INR 101 crore from INR 78 crore a year ago, representing a growth of approximately 30%.
EBITDA margin expanded to 25%, compared with 15% in quarter two financial year 2026. For H1 financial year 2027, EBITDA rose to INR 178 crore from INR 123 crore in H1 financial year 2026, an increase of approximately 45%. EBITDA margin improved to 22%, compared with 14% in the corresponding period last year. The profit after tax for quarter two financial year 2027 was INR 57 crore, compared to INR 39 crore in quarter two financial year 2026, representing growth of approximately 48%. The PAT margin increased to 14%, compared with 8% a year ago. For H1 financial year 2027, profit after tax reached INR 98 crore against INR 59 crore in H1 financial year 2026, an increase of approximately 67%. The PAT margin improved to 12% as compared to 7% in the previous year.
These results demonstrate that despite lower revenue, the company delivered higher gross margin, EBITDA, and profit after tax, together with a substantial expansion in margins. An important strategic factor behind this improvement has been the company's shift toward a stronger patented product portfolio initiated from financial year 2026. This transition, along with our initiative of cost discipline and operational efficiency, has been an important contributor to the improvement in the margin. We intend to continue strengthening the patent portfolio while remaining focused on our execution and financial discipline.
Since last year, the company is focusing on reducing the OpEx and is successful in doing so. Operating expenses, including finance costs and depreciation, were INR 81 crore in quarter two financial year 2027, compared with INR 92 crore in quarter two financial year 2026, a reduction of approximately 12%. For H1 20 27, these expenses were INR 149 crore compared with INR 157 crore in the corresponding period last year, a reduction of 5%. This reflects the importance of maintaining cost discipline while navigating a challenging market environment. We will continue to maintain a disciplined approach to cost and take all necessary measures to enhance efficiency, ensure that expenditures remain aligned with business requirement and growth priorities.
We will continue to focus on our working capital management in line with market requirements. We have been monitoring our working capital and ensuring that we gradually reduce it over the period. To summarize, quarter two and H1 financial year 2027 were characterized by revenue pressure amid challenging agriculture conditions. However, the company was able to deliver strong growth in profitability and substantial margin expansion.
The improvement in gross margin, EBITDA, and PAT, together with lower operating expense, reflects the progress made in strengthening the company's profitability profile. Our focus remains on sustaining financial discipline, managing working capital carefully, and supporting the company's strategy of building a stronger patented portfolio and pursuing sustainable profitability growth. Thank you, everyone. That's all from my side. We are now open to take the questions.
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question- and- answer session. Anyone who wishes to ask a question may enter star followed by one on their handsets. If you wish to remove yourself from the question queue, you may enter star followed by two. Participants are requested to please use only handsets while asking a question. We will wait for a moment while the question queue assembles. To ask questions, please enter star and one. The first question is from the line of Hemant. Please go ahead.
Hello, sir. Good afternoon.
Good afternoon.
Good evening .
Firstly, congratulations for the excellent bottom line this quarter. My first question is related to the top line for this quarter. In the commentary, you were mentioning that the top line is reduced mainly because of bad monsoon. But if we see the numbers closely, only INR 22 crore reduction came from B2C business this quarter compared to last year, and the balance INR 88 crore came from institutional sales. Can you please explain this?
Yeah, with respect to revenue, we had, at the beginning of the year, put certain strategies for the current year. One was we wanted to reduce our generic portfolio. We had reduced certain products from both our Best Agrolife and Sudarshan brands, and the focus was more on the patent portfolio, which we have been discussing over the last one or two years. We saw that our patent portfolio went up by 20%, whereas our generic went down by 30%. This was in line with what we were planning for this year. The same you can see in the gross margin levels and the overall profitability levels, t hat our profits went up even though our turnover went down a little bit.
With respect to B2B business, our strategy was also to reduce the highly generic product business which we were doing earlier, and slowly move into products which are more of a specialized nature. Going forward, we will continue with this strategy wherein slowly we'll remove the products which are generics, so that our sales team will focus and concentrate more on the portfolio which is of a patent nature, or in the B2B segment, of more specialized molecules. This year, in our plant also, we have started products which are very specialized in nature and which will also help in improving the profitability going forward as well.
How much of this generic sales is still left in the overall—
Sorry to interrupt, sir. Could you be a little louder, Hemant sir?
I'm asking how much of this generic sales is left in the overall revenue? Because if you see the—
Most of the reduction is because of the generic sale, because if you see, my portfolio of patent has gone up from earlier 50% in H1 to 60% this year. Whatever reduction is there, reduction is mostly due to, mostly or rather everything is due to the generic products.
What about the H2 for this year? What can we expect from both the quarters?
H2, again, this also we had thought because generally the feeling is that the H2 is a loss-making period. But what we have done this year also for H2 is, because there is little uncertainty on the seasonal front, we have been more cautious and we have taken higher provision for sales return and also higher gross margin. That means tomorrow, even though if there is little higher sales return, which already mostly we have closed by the end of October, we believe that we'll be able to take that shock and rather both in terms of turnover as well as profitability. In nutshell, we have created higher provisions and created a buffer for the profit, which tomorrow, if there is an additional return, this will be able to absorb.
If we'll not get that high return and if we are able to, if the season is little reasonable, then it will get released and our H2 numbers will be better. What we believe is H2, we should not be having losses. That is what our feeling is compared to what we had in H2 last year. We are seeing an overall good recovery in this year. What we believe is, last year would be our like a bottom-out year and henceforth, our profitability would go up each year.
In Q3 last year, you were not aware of this sales return till end of December. We had this conversation earlier.
Yeah.
What kind of strategies do we have this year so that we will not have a sudden surprise again?
This year we have put a rule in wherein we had mentioned that by end of October, or say by maximum first week of November, our entire sales team should clear the inventory of sales return which is there in the market. We are happy to see that we are almost — October is closed and we have discussed with our sales team. 95% of the sales return have been received. There could be some returns here and there, but we don't expect any surprise going forward.
Which is under provisions.
Yeah. And which already for which we have made higher provisions.
Even margins are under control, sir?
Yeah, yeah. Margins, as I said, for this provision we have put higher margins. That means next quarter if our sales return is little lower than expected, then those margins will get released and our profit will be higher on the higher end in Q3 compared to Q3 of 2026.
Okay. Sir, and one last question from my side. Now I see lot of B2B sales happening with SWAL Corporation for your patented products. What is the strategy in this line with other customers?
In fact, which we are giving, that is purely B2B business, which we are giving to SWAL, that is a UPL subsidiary, SWAL Corporation. And definitely, which product we are giving to them, like we have different product portfolios. In that, in same segment, if we have different product, so this is our strategic part that we will make our partner to cater that segment and increase our sales. Definitely, yes, we have given two products to SWAL Corporation, which are both our patented molecules.
In other words, I can say, if you see in the Indian companies, we are the one who is giving own patented product to any MNC company, either UPL is Indian company, but I would say they are in so many countries. Any big company, and also we are giving to Adama also, that is again an MNC company. This is, we will say, this is our one kind of success that we are able to give this product to big companies, which is our patented molecules. If you see in industry, there is a big example that we are doing and no other can, as of now, not possible for others to do that.
Okay. That's it from my side, sir. Thank you so much.
Thank you. Thank you very much.
Thank you. Participants with questions may please enter star followed by one. The next question is from the line of Saket Kapoor from Kapoor & Co. Please go ahead.
[Non-English content] and all the team members. Hope I'm audible.
Yes, sir. Please proceed.
Yes, sir. Thank you, sir. [Non-English content] opening remarks [Non-English content] , you have very well articulated that we have created the buffer which will take care of any exigency that may happen. Sir, can we conclude that the processes are in place and the type of variations or the vagaries we have seen in numbers reporting in last year, I think so 18 months ago, are things of past? We won't be seeing anything even closer to that sales return part of the aspect going there. That is correct, sir?
Yes, Saket ji, as I mentioned that what we believe is INR 25 crore-INR 26 crore numbers are like bottomed out numbers. We don't expect that we will ever go to those kind of numbers ever in future. So this year already in H2 you see our numbers which are above exception, above, in the sense those are exceptional numbers. And to ensure that our Q3, Q4 also goes well, we have created enough provision for our sales return so that we don't come up with any surprises how which happened last year.
And as I mentioned, we have put strict deadlines as well from the market to see that most of our returns have been completed. You are right in your understanding that last year was more like a bottomed out and from this year onwards, we are back to our numbers which we had two years back.
Right, sir. Sir, when we look at your comment about some business opportunity from Nepal and one shipment to Sudan also, can you quantify shipment to Sudan of some X ton you have mentioned? Is it something one-off we have done or what is the value proposition there? And when we are highlighting it, what is the significance of the same?
Hello?
[inaudible]
I am online.
[Non-English content] Sudan [Non-English content] customer [Non-English content] registration से काफी [Non-English content] generics [Non-English content] export [Non-English content] cash [Non-English content] generics [Non-English content] profit [Non-English content] quality [Non-English content] even in generics [Non-English content] export [Non-English content]
[Non-English content] soil [Non-English content] agriculture [Non-English content] India [Non-English content] patented products [Non-English content] interest [Non-English content] Ronfen [Non-English content] India [Non-English content] interest [Non-English content] in addition to Ronfen [Non-English content] results [Non-English content] patented products [Non-English content] registration [Non-English content] patented portfolio [Non-English content] countries [Non-English content]
Sir, [Non-English content] value [Non-English content] quantify [Non-English content] ? 47 metric ton [Non-English content] shipment [Non-English content] what is the turnover?
[Non-English content] value approximately [Non-English content] around $4 million-$ 5 million [Non-English content
Okay. We are preparing for other consignment also [Non-English content] this is one-off that was due for the period?
[Non-English content] correct [Non-English content] approximately INR 5 crore [Non-English content] $5 million [Non-English content] Around [$300] [Non-English content]
[Non-English content] this is [Non-English content] one-off [Non-English content] going ahead sir [Non-English content] repeated delivery [Non-English content]
[Non-English content] repeat-repeat consignments [Non-English content] discussion [Non-English content]
Okay. Vikas ji, if you can explain to us note number six for the benefit of the investing community. I think this is a long note given about the Income Tax Department wherein we have won also some of the appeals and there are some pending. if you could just give us a nutshell understanding of where are we in terms of this department issue both for the company as well as for the subsidiaries.
[Non-English content] Saket ji, the purpose of that note and especially the note being long, the purpose was that [Non-English content] raid [Non-English content] related most of the cases have been closed. closed with any zero liability, not a single rupee liability. [Non-English content] 2023 [Non-English content] raid [Non-English content] almost [Non-English content] assessments complete [Non-English content] other than smaller items [Non-English content] contest [Non-English content] with Income Tax Department, 95% of all the cases have been closed.
Slowly we will see that we wanted to be transparent [Non-English content] issue related [Non-English content] and going forward slowly [Non-English content] note [Non-English content] nutshell [Non-English content] case [Non-English content] related [Non-English content] assessment almost [Non-English content] without any liability.
Okay, [Non-English content] crystallize [Non-English content] due course [Non-English content]
Rather, [Non-English content] refunds [Non-English content] refund orders [Non-English content] issue [Non-English content] Within one and a half month we will get those refunds as well.
One of our subsidiaries, Seedlings India, we already got the refunds also from Income Tax, which was stuck because of this same reason.
Okay sir, and it was of any significant value sir?
Which we get, that is around INR 5 crore, which we already get, and the pending, which is already in the process, and they are saying within a month we will give you that, is again around INR 15 crore. I don't have an exact number but it is around INR 15 crore.
That is good to hear that. Sir, two balance sheet line items—
Sorry to interrupt. Could you be a little louder please?
Yes ma'am, [Non-English content] Hello?
[Non-English content]
Please proceed.
Sir, balance sheet item [Non-English content] intangible assets [Non-English content] nature [Non-English content] and intangible assets under development, what should one read into it? And in the cash flow part, when we read at income tax paid, net off is only INR 4 crore. Can you please explain to us how these two line items should be read?
Intangible asset under development is some very minimal amount from earlier period which we plan to write off by this March. [Non-English content] amount [Non-English content] With respect to other intangible assets are mostly those which we had got when we had acquired companies, for example Sudarshan and Kashmir Chemicals.
That will slowly, as and when intangibles [Non-English content] depreciation [Non-English content] third point [Non-English content] cash flow [Non-English content] income taxes paid. Income tax paid [Non-English content] refunds [Non-English content] previous year [Non-English content] liability [Non-English content], that will close when we file the return. You will see again that will mostly get closed by November. [Non-English content] December [Non-English content] numbers [Non-English content] cash flow [Non-English content] clearly [Non-English content] payments [Non-English content] adjust [Non-English content] refund [Non-English content]
[Non-English content] PBT number for the first half that is as on September is INR 132 crore [Non-English content] tax provision [Non-English content] INR 33 crore [Non-English content] That is the current tax. [Non-English content] advance tax [Non-English content] pay [Non-English content] as on September?
[Non-English content] generally [Non-English content] H1 heavy [Non-English content] H2 [Non-English content] results [Non-English content] generally because of the season [Non-English content] portion [Non-English content] advance tax pay [Non-English content] crystallize [Non-English content] pay [Non-English content] January [Non-English content] pay [Non-English content] start [Non-English content] Advance tax, even though we pay a smaller portion of actual liability, the actual amounts we start paying only from January onwards.
Moreover, our most of the collection also come on the third quarter, which is the nature of our business and that also cash flow will be improved and the same time we will deposit.
[Non-English content] same [Non-English content] pattern follow [Non-English content]
Sir, does that result into any interest obligation, interest on advance tax deferment [Non-English content] pay [Non-English content] we need to pay that interest on the same line?
[Non-English content] assessment year [Non-English content] refund आ[Non-English content] time [Non-English content] H1 [Non-English content] higher profits [Non-English content] 100% of advance tax pay [Non-English content] losses [Non-English content] refund [Non-English content] Refund [Non-English content] time [Non-English content] Rather, [Non-English content] December [Non-English content] pay [Non-English content] with some interest rather than pay additional amount and wait for it for three-five years.
Right, sir.
And even though if you pay extra from department, we get very less interest and where we are paying a very high interest rate.
Right, sir, that was my question, that we need to pay interest on the lower advance tax payment under some particular section. So, sir—
Yeah, some portion will be there for sure. Some portion will be there for sure for the interest.
Yes, sir. Sir, taking this, the revenue guidance, at least are we in a position to provide how H2 will behave in terms of revenue? Last year was very poor, as it is there. Last year we closed March with INR 1,256 crore of revenue, and only first half we have done INR 800 crore. So, how should we look at the revenue, or are we not in a position to outline anything for the same?
No, Saket ji, it's not like that. Definitely, [Non-English content] revenue, we are not changing this year revenue. Our target is to, you know, in the business in discipline, [Non-English content] interview [Non-English content] , always we are going in the discipline way. Last three, four year, what we have seen, what we have faced. So this year, we are changing all the strategy, and definitely our first target to get the profitable product and to get profit in the company.
That is our main target, and I believe [Non-English content] definitely achieve [Non-English content] with the good numbers of the profitability. But definitely, at the same time, we talk about revenue, so we are not changing revenue for sure. But as of today, I can say we will close last year, but we cannot say it will be very big number from the last year. Definitely.
For revenue—
The EBITDA and our profitability will increase the way it is in H1, the same way it has to be in H2. It will definitely increase the profitability only.
Okay. And lastly, sir, Vikas, if you can also mention about our long-term borrowing has moved up significantly. If we take the March number of INR 26 crore, INR 27 crore rather, now it is INR 73 crore. Are we undergoing any CapEx? [Non-English content] CapEx plan [Non-English content] defer [Non-English content] thought process [Non-English content]
CapEx plan [Non-English content] deferred [Non-English content] wherein we feel [Non-English content] profitability [Non-English content] control [Non-English content] Then only we will think of the next CapEx plan. With respect to long-term [Non-English content] borrowings [Non-English content], it shows under long term because [Non-English content] Israel-Iran war start [Non-English content] , government had come up with the facility of providing 20% compared to your, in addition to your existing facility.
[Non-English content] issue because with respect to Iran-Israel, [Non-English content] inventory [Non-English content] the cost also had gone up, inventory also went up a little bit. We thought we'll take up the 20% which government facility had was provided. [Non-English content] long term [Non-English content] . It's not for the CapEx, but it's mostly for working capital only, but the urgent funding which government has provided through our existing bankers.
But sir, this is INR 50 crore additional. 20% of what value, sir?
Overall [Non-English content] group [Non-English content] we had around more than INR 200 crore of limits in Best Agrolife. [Non-English content] 20% available [Non-English content], means INR 40 crore. INR 40 crore [Non-English content] Best Agrolife entity [Non-English content] around INR 10 crore [Non-English content] entities [Non-English content] you will see INR 50 crore additional which went up.
And that we are using for our inventory management? [Non-English content] what is the utilization of the funds?
Utilization will be all for working capital only.
Currently, sir, [Non-English content] cost of fund [Non-English content] repayment [Non-English content] schedule [Non-English content] ? Current maturities [Non-English content] ? When are we going to repayment of due?
[Non-English content], one year moratorium [Non-English content], and then repayment will start up in second year, and this loan is for five years. EMI basis [Non-English content] we will start repaying from second year onwards.
And rate of interest?
Cost of fund is in the range of 9.5%- 10%.
Correct, sir.
[Non-English content] existing facility [Non-English content], same rate [Non-English content]
Same rate [Non-English content] Sir, when we look at our short-term borrowing, that range is, that has been lower at INR 382 crore. So, what is exactly the blended cost of fund? Because when we look at the finance cost on a quarterly basis, that is INR 14 crore-INR 15 crore on a consolidated basis.
Right.
What constitutes this—
Average cost of fund is in the range, it's approximately 9.75%- 10% is our average cost of funds.
Okay. Sir, credit rating [Non-English content] due [Non-English content]?
Credit rating immediately, [Non-English content] result [Non-English content] publish [Non-English content] , so we will be sending all the details to them, and then hopefully within a month or so, we should be getting the rating for this year.
And that is through which, who is our current credit rating? We are getting our ratings done by?
Crisil.
Crisil. So one month we will get an update. By January, December, January we will get it.
Yeah.
[Non-English content] sir [Non-English content] team [Non-English content] sir.
Thank you, Saket ji.
All the best. Yeah, yeah, sir. [Non-English content]
Participants, if you have any questions at this time, you may enter star followed by one on your handset. The next question is from the line of Aditya from AK Investment. Please go ahead.
Good afternoon, everyone. The balance sheet looks very stretched, actually. Are you planning for any fund raisers just to strengthen the balance sheet? Because investors want a strong balance sheet.
With respect to funds, especially if you say working capital, there could be a requirement of INR 10 crore-INR 20 crore, INR 30 crore, which we might end up taking. That's okay, that's the smaller amount. But on the improvement on the balance sheet front, the important part is for one of our manufacturing plants, where because we were going with one very specialized product and it took a little more time because we were doing 18 steps backwards, which no one had done in India for the same product.
But it took a little more time, so we were not able to sell in the previous and current season. So that has gone up a little higher, which we believe will close by March. That strengthening will come not by additional funds. As I said, additional funds could be smaller, but it will come by lowering of the inventory levels, which we'll start seeing from March onward, between February and March. Once that happens, you will see that the balance sheet will look much stronger.
Sir, [Non-English content] last call [Non-English content] we expect to grow our revenues by 10%- 15% annually. But [Non-English content] September [Non-English content] peak season [Non-English content] and we are having a de-growth. [Non-English content] de-growth [Non-English content] is it due to delayed monsoons or [Non-English content] market share [Non-English content] loss [Non-English content]
Definitely, [Non-English content] Aditya [Non-English content] commentary [Non-English content] main target [Non-English content] that is again and again [Non-English content] patented molecules [Non-English content] multinational companies [Non-English content] off-patent [Non-English content] products [Non-English content] Fluxametamide, one of the, I have given you the example [Non-English content] definitely [Non-English content] commentary [Non-English content] rainfall deficit [Non-English content] that was the main reason. But at the year-end, [Non-English content] , that year-end we are hoping. But again, I would say we are not changing the turnovers, we are not changing the total revenue.
Our main focus is to marketing development in our patented molecule. [Non-English content] focus [Non-English content] because that is again whatever we establish, [Non-English content] market [Non-English content] establish [Non-English content] , this is one biggest example we always give for Ronfen. If you see in the entire India market, that product is in under top 10 in India, which is a very big success definitely in the numbers. It is coming definitely good numbers with the Ronfen, if we say separately.
But [Non-English content] product [Non-English content] develop [Non-English content] three to four year we take and [Non-English content] revenue, [Non-English content] revenues [Non-English content] pattern [Non-English content] aim [Non-English content] , exports [Non-English content] aim [Non-English content], international markets [Non-English content] aim [Non-English content] focus [Non-English content] But definitely in the short term, we are not seeing [Non-English content] revenue [Non-English content] chase [Non-English content] That is true, Aditya ji. 10%-15% sometime hard to say it can achieve or not, but definitely year-end [Non-English content] I am hoping. But if 10%-15% will increase, then profitability will be very, very high. That I can say.
Market [Non-English content] I feel management [Non-English content] trust न[Non-English content] the share is trading at such low values. But I wish you all the best and hopefully [Non-English content] sale return [Non-English content] work [Non-English content] in next two quarters.
Yeah, definitely. Definitely, Aditya ji. Thank you very much, Aditya ji.
Ladies and gentlemen, if you have any questions, you may enter star and one. To ask questions at this time, you may enter star followed by one on your handset. For questions, you may enter star and one. As there are no further questions, I now hand the conference over to Mr. Vimal Kumar for closing comments. Over to you, sir.
Thank you, everyone, for joining us today and for your valuable time and interest in Best Agrolife. We appreciate your questions, feedback, and continued confidence in the company. Your engagement is important to us, and we look forward to keeping you updated on our progress in coming quarters. Thank you once again. Have a great day and happy Diwali.
Thank you very much, sir. On behalf of Best Agrolife Limited, that concludes this conference call. Thank you all for joining us, and you may now disconnect your lines. Thank you.