Dhanuka Agrictech Q1 net profit jumps 4-fold to Rs 52 crore, to buyback Rs 100 crore shares

Agro-chemicals firm Dhanuka Agritech Ltd on Wednesday reported almost four-fold jump in consolidated net profit at Rs 51.79 crore in the first quarter of 2020-21 fiscal on robust income. The company's board also approved buyback of shares worth Rs 100 crore at a maximum rate of Rs 1,000 per share after getting shareholders' nod and other approvals.

The company had posted a net profit of Rs 14.67 crore in April-June quarter a year ago, Dhanuka Agritech said in a regulatory filing.

Net income increased to Rs 381.21 crore during the quarter under review from Rs 222.74 crore in the same period last fiscal.

Expenses rose to Rs 311.99 crore from Rs 202.02 crore in the year-ago quarter.

On share buyback, the company said it proposes to buyback about 10 lakh shares at a maximum rate of Rs 1,000 per piece, and maximum offer size of Rs 100 crore.

Its board has constituted a buyback committee which will decide the same through tender offers on a proportionate basis. Emkay Global Financial Services has been appointed as manager for this purpose.

Dhanuka Agritech said the Group resumed operations in a phased manner from the beginning of April as per government directives on COVID-19 pandemic. However, subsidiary firm Dhanuka Agri-Solutions has not yet started operations.

With a view to ensure minimal disruption with respect to operations including production and distribution activities, the Group has taken several business continuity measures, including working from home, providing laptops or desktops, following social distancing norms and sanitization of office/work places, it said.

"While the Group has not experienced any significant difficulties with respect to market demand, liquidity, collections so far, the management believes that being into an essential commodity there is no significant impact of COVID-19 pandemic on the current and future business operations, no impact on financial statements liquidity position and cash flows...," it said.

The company said it continues to closely monitor the rapidly changing situation.