It gives us immense pleasure to present to you the 33rd Annual Report of AimcoPesticides Limited. This year we are expanding the purpose of this report and taking thisopportunity to communicate our goals business and strategies more comprehensively.
Before we share our thoughts and give you a review of the year gone by we would liketo take you through the journey of this organization. Our roots date back to almost 75years when this organization was incorporated in the form of a partnership firm - AllIndia Medical Corporation (AIMCO). We started as a formulator with four plants across thecountry. In efforts to streamline our operations later on in 1993 we set up acentralized manufacturing unit in Lote Parshuram which also marked our entry into themanufacturing of Chloropyrifos Technical. The company shifted its focus to exports andR&D. While we faced turbulent times & hardships in our journey especially duringthe debt-restructuring we are here navigating our way back to our former glory.
To begin with a quick performance review Consolidated revenue from operations at Rs.185.24 crore reflects 6.08% year-on-year (YoY) decline over the previous year. EBITDA grewby 3.65% to reach Rs. 13.89 crore and PAT at Rs. 6.65 crore recorded 13.86% YoY degrowthover the previous year. The fall in revenue from operations is on account of our BulkFormulations operations which echoes a hostile external environment and competitive tradefrom Chinese incumbents in our export markets. Bulk Formulations - a structurally lowmargin business coupled with the unhealthy competition generated prices that were notprofitable for us and thus we stayed away from this business for the better part of thefinancial year 2020. Our core area of focus - Technical's business did well in the yearunder review.
Impact of COVID-19
The entire world was caught by surprise with rapid spread of the infectious NovelCoronavirus pandemic that has disrupted economic operations global supply-chains andhuman lifestyles worldwide. To combat the spread of this virus the Home Ministryintroduced a series of lockdowns and curfews beginning 24th March 2020 whileAgrochemicals was quickly declared as an essential commodity and allowed to function inthe lockdowns there were a lot of challenges at the ground level. The company faredrelatively well through this pandemic our supplies were procured in advance inanticipation of the crisis and production break & challenges were limited to April.While the company management does not foresee any material challenges in its supply chainthere may be an impact on demand in its export markets for the coming season.
The company has taken actions to ensure the safety health and well-being of the Aimcofamily. We have been in complete compliance with the guidelines issued by the authoritiesat our offices and manufacturing facility. We effectively adopted the 'Work from Home'culture in the interim and have now resumed normal office operations to the extentpossible. Manufacturing operations have completely normalized since June.
While completing our debt restructuring & operational turnaround in 2014 we didn'thave the luxury to select and flexibility to focus on the most ideal business verticals orthe most profitable product segments; at the time idea was to turn profitable at theearliest and limit our focus to the immediate future. That is not the case today in thepast few years our focus has transgressed immediate opportunities onto sustainability. Tothat end we have been concentrating on expanding our operations in our core competencei.e. manufacturing Technical grade agrochemicals. The company has focused its energies andcapital to commercialize new molecules and file product registration to cater to theexport markets. We are confident of commercializing remunerative products in this segmentsoon.
The COVID-19 pandemic may have an extended impact on business but as communicatedearlier our outlook for the coming year remains untethered due to this pandemic. TheBoard of Directors and the Management team will guide the company in navigating throughthis crisis and recalibrating its strategy to address the new realities.
Before we conclude we wish to thank all our Board Members team regulatoryauthorities and investors for their faith guidance and support.