Excel Crop Care spurts after strong Q2 earnings

Excel Crop Care was locked at 5% upper circuit at Rs 307.75 at 11:23 IST on BSE after net profit jumped 206.19% to Rs 23.24 crore on 29.67% growth in total income from operations to Rs 272.80 crore in Q2 September 2013 over Q2 September 2012.

The Q2 result was announced after market hours on Wednesday, 30 October 2013.

Meanwhile, the S&P BSE Sensex was up 4.75 points or 0.02% at 21,038.72.

On BSE, 2,789 shares were traded in the counter as against average daily volume of 3,197 shares in the past one quarter.

The stock opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level at Rs 307.75 so far in the day. The stock had hit a 52-week high of Rs 312 on Wednesday, 30 October 2013. The stock had hit a 52-week low of Rs 150.45 on 28 March 2013.

The stock had outperformed the market over the past one month till 30 October 2013, surging 29.06% compared with the Sensex's 8.54% rise. The scrip had also outperformed the market in past one quarter, jumping 56.74% as against Sensex's 8.71% rise.

The small-cap company has equity capital of Rs 5.50 crore. Face value per share is Rs 5.

Excel Crop Care said that the Competition Appellate Tribunal has pronounced an Order on the company's appeal challenging the penalty of Rs 63.90 crore imposed by the Competition Commission of India on it. The Tribunal has reduced the amount of the penalty to Rs 2.91 crore, Excel Crop Care said.

Excel Crop Care's board of directors at a meeting held on Wednesday, 30 October 2013, approved a scheme of arrangement between TML Industries (demerged company or TML) and Excel Crop Care (resulting company or ECCL) and their respective shareholders and creditors (scheme).

The business rationale for the scheme is based on integration of the business of Chlorpyriphos (CPP).

After withdrawal of Endosulfan from the domestic market in 2011, the company has been focusing on various other insecticides to regain its market presence. CPP is the largest selling organo phosphorous insecticide globally. CPP has emerged as one of the major insecticide products for the company and has partly captured Endosulfan share in the domestic market, Excel Crop Care said.

TML Industries (TML) is the sole Indian merchant manufacturer of NaTCP, a major raw material for CPP. The company has been sourcing its NaTCP requirements from two sources - TML and imports from China. The proposed integration of NaTCP manufacturing facility of TML, with the company would lead to backward integration for the company's CPP production and improve product margins as also give better market standing, Excel Crop Care said.

Excel Crop Care manufactures agrochemicals, which includes insecticides, herbicides, fungicides and fumigants.

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