Insecticides Q2 net up 66% at Rs 23 cr, announces bonus shares

Agro-chemical firm Insecticides India today reported 66% increase in net profit at Rs 22.93 crore for the second quarter ended September 30 and also announced bonus shares for its shareholders.

The board, in its meeting held today, recommended one bonus share each against two shares to all shareholders, Insecticides India Ltd said in a statement.

The company's net profit stood at Rs 13.84 crore in the year-ago period.

Insecticides India attributed the rise in profit to "encouraging response to its newly launched products and stable production at the new Dahej plant."

It's turnover rose by 18% to Rs 402 crore during July-September quarter from Rs 340 crore in the same quarter of last fiscal.

Commenting on results, company's Managing Director Rajesh Aggarwal said: "The increase in net profit is very encouraging for us in the scenario. I would accredit this to our broad product strategy i.E. Working on 20 products, Navratnas and Super 11, which reduces the dependence on 1-2 products."

On recommendation of the bonus shares, company's CFO Sandeep Aggarwal said: "This will increase the wealth of the shareholders in the long run. Moreover this will increase the float of the shares in the market."

Delhi-based Insecticides India manufactures and markets a gamut of agrochemical products ranging from insecticides to fungicides to 'weedicides', providing a full range of agrochemical solutions to farmers. It has six manufacturing facilities in Rajasthan, Gujarat and Jammu and Kashmir.