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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.