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Excel Industries
About the Company
Excel Industries Limited (EIL), incorporated as a
private limited company in 1960, was
reconstituted as a public limited company in 1971.
Following the demerger of its crop protection
business from its current associate, Excel Crop
Care Ltd in 2003, EIL has been manufacturing
chemical intermediaries, which are used in
agrochemicals, commodity polymers, engineering
polymers, soaps and detergents, water treatmentchemicals, and biocides.
Major changes in the current year
As on September 30, 2012, the promoter group
(the Shroff family) owned around 41.23 per cent
of EILs equity shares, the public owned about
45.23 per cent, and the rest was owned by banks,
financial institutions, insurance companies and
others. Besides ECCL, other Shroff groupcompanies involved in the agrochemicals business
include Hyderabad Chemical Products Ltd and
Hyderabad Chemicals Ltd. During the current
year, the holding in shares of Romvijay Biotech
Pvt. Ltd., for Rs.5 million by KIL were been
liquidated.
Snapshot of key financial information
For 2011-12, EIL (consolidated) reported a profitafter tax (PAT) of Rs.153.7 million on net sales of
Rs.3 billion, against a PAT of Rs.139.8 million on
net sales of Rs.2.5 billion in 2010-11. For the six
months ended September 30, 2012, EIL
(standalone) reported a PAT of Rs.119.2 million
on net sales of Rs.2 billion, against a PAT of
Rs.96.8 million (including Rs.72.4 million of profit
on sale of land) on net sales of Rs.1.4 billion forthe corresponding period of the previous year.
Creditworthiness (Outlook Stable)
Based on the analysis performed from financials
of EIL and on study of EILs business risk profile
and also on a comparative study of the industry
profile, we conclude that EIL will continue to
benefit from its diversified revenue profile while
its financial risk profile will continue to beadequately supported by steady revenue growth
and cash accruals over the medium term. The
outlook will remain Positive if EIL continues to
have an increase in its revenues and cash accruals,
and maintains prudent management of working
capital thus reducing its dependence on bank lines.
Conversely, the outlook of the company faces a
risk of turningNegative if the companys
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business performance weakens than expected or
in case of a steep decline in its profitability or a
stretch in its working capital levels, or if it
undertakes a larger-than-expected, debt-funded,
capital expenditure programme, thereby
weakening its capital structure.
Summary
Summing, EIL has a positive creditworthy rating
on analysis of the key financial information.