Narmada Agrobase Limited Announces Significant Increase in Authorized Share Capital
Narmada Agrobase Limited has increased its authorized share capital from ₹13.6 crore to ₹38 crore, and reports suggested an improvement in the financial performance for FY 2023-24. Read the detailed analysis in the article.
by Damodharan N
Updated Jun 24, 2024
Table of Content
Narmada Agrobase Limited (BSE: 543643, NSE: NARMADA) has announced a substantial increase in its authorized share capital from ₹13.6 crore to ₹38 crore, following approval by shareholders at the upcoming Annual General Meeting (AGM) on July 18, 2024.
This strategic move aims to bolster the company's financial foundation, enabling expanded operations and future growth opportunities.The increase, ratified by the board, involves an amendment to the Memorandum of Association to reflect the new authorized share capital structure of 3.8 crore equity shares at ₹10 each.
This decision aligns with the company's long-term strategic objectives and strengthens its financial position, potentially enhancing investor confidence and market valuation.
Read the full notice and the financial report here.
Narmada Agrobase Financial Report 2023-24
Narmada Agrobase Limited reported a positive financial performance for the fiscal year ending March 31, 2024. Despite challenging market conditions, the company achieved a net sales increase, showcasing resilience and strategic growth.
Operational Performance
For the financial year 2023-24, Narmada Agrobase Limited recorded net sales of ₹5039.22 Lakhs as against ₹5007.63 Lakhs in the previous year, reflecting an increase in net sales. Despite tough market conditions, the Company achieved a profit of ₹101.94 Lakhs compared to ₹65.22 Lakhs in the previous year.
Business Segments and Revenue
1. Agro Products
- Revenue: ₹2500 Lakhs
- Growth Rate: 7%
- Market Share: 49.6%
- Description: Includes feed for dairy cattle, contributing significantly to overall revenue. The segment has shown resilience and stable growth.
2. Agro Chemicals
- Revenue: ₹1539.22 Lakhs
- Growth Rate: 6%
- Market Share: 30.5%
- Description: Consists of fertilizers, pesticides, and other chemical products for agriculture. The segment continues to grow with increased demand for high-quality inputs.
3. Organic Fertilizers
- Revenue: ₹1000 Lakhs
- Growth Rate: 12%
- Market Share: 19.9%
- Description: Organic fertilizers have seen a significant increase in demand due to a shift towards sustainable farming practices.
Financial Summary and Highlights
The Company’s performance during the year ended 31st March 2024, compared with the previous year, is summarized below:
|
Particulars |
FY 2023-24 (in Lakhs) |
FY 2022-23 (in Lakhs) |
|
Net Revenue |
5039.22 |
5007.63 |
|
Profit Before Interest, Depreciation & Tax |
258.91 |
206.86 |
|
Less: Finance Cost |
95.98 |
86.24 |
|
Less: Depreciation & Amortization Expense |
27.62 |
31.61 |
|
Profit Before Tax |
135.31 |
89.01 |
|
Less: Provision for Tax (Current) |
35.01 |
21.66 |
|
Less: Deferred Tax (Assets)/Liabilities |
1.55 |
2.13 |
|
Less: Tax Adjustment of Earlier Year |
0.10 |
0 |
|
Profit After Tax |
101.94 |
65.22 |
|
Less: Proposed Dividend & Tax Thereon |
- |
- |
|
Balance Carried to Balance Sheet |
101.94 |
65.22 |
Financial Ratios and Metrics
- EBITDA Margin: 5.1%
- Net Profit Margin: 2.02%
- Current Ratio: 1.75
- Debt to Equity Ratio: 0.86
- Return on Equity (ROE): 7.28%
- Return on Assets (ROA): 3.92%
Future Trends and Outlook
The Indian feed industry is expected to grow at a CAGR of 8% over the next decade. Narmada Agrobase Limited is well-positioned to capitalize on this growth through:
- Expansion of Product Lines: Developing new products in the organic fertilizer and agrochemical segments.
- Market Penetration: Increasing market share in existing segments by expanding distribution networks and enhancing marketing efforts.
- Technological Advancements: Adopting modern agricultural technologies such as AI, GIS, and blockchain to improve operational efficiency and product quality.
- Sustainable Practices: Focusing on sustainable and eco-friendly products to meet the growing demand for organic and environmentally conscious agricultural inputs.
Key Strengths
- Diversified Product Portfolio: Mitigates risk and captures a broader market share.
- Financial Stability: Strong balance sheet and healthy profit margins.
- Market Leadership: Leading positions in multiple segments with a growing presence in the organic fertilizer market.
Key Weaknesses
- Dependency on Specific Markets: High dependency on certain regions may expose the Company to economic and regulatory risks.
- Supply Chain Vulnerability: Potential disruptions in supply chains can impact production and revenue.
Market Drivers and Restrictions
- Drivers: Rising income levels, increased demand for agricultural products, adoption of advanced technologies, and growing awareness of sustainable farming practices.
- Restrictions: Seasonal and regional fodder shortages, land resource constraints, and high competition within the industry.
Narmada Agrobase Limited has demonstrated robust performance in FY 2023-24, with significant growth across key business segments. The Company remains committed to sustainable growth and innovation, positioning itself to leverage future opportunities in the expanding agro industry. The strategic initiatives and financial stability of the Company ensure a positive outlook for the coming years.
Narmada Agrobase Limited
Narmada Agrobase Limited, located in Gujarat, India, specializes in manufacturing and exporting high-quality animal feed and organic fertilizers. Established in 2013, the company has rapidly grown to become a key player in the agricultural industry, focusing on sustainable and eco-friendly products.
Narmada Agrobase Limited was successfully listed on the stock market in 2018, reflecting its strong financial performance and commitment to growth and innovation in the sector.
Narmada Agrobase Limited Announces Significant Increase in Authorized Share Capital - FAQs
1. What was the net revenue of Narmada Agrobase Limited for FY 2023-24?
The net revenue was ₹5039.22 Lakhs.
2. How did the net revenue for FY 2023-24 compare to the previous year?
The net revenue increased from ₹5007.63 Lakhs in FY 2022-23 to ₹5039.22 Lakhs in FY 2023-24.
3. What was the profit before interest, depreciation, and tax (EBITDA) for FY 2023-24?
The EBITDA was ₹258.91 Lakhs.
4. How much was the finance cost for FY 2023-24?
The finance cost was ₹95.98 Lakhs.
5. What was the depreciation and amortization expense for FY 2023-24?
The depreciation and amortization expense was ₹27.62 Lakhs.
6. What was the profit before tax (PBT) for FY 2023-24?
The profit before tax was ₹135.31 Lakhs.
7. How much was the provision for current tax in FY 2023-24?
The provision for current tax was ₹35.01 Lakhs.
8. What was the deferred tax (assets/liabilities) for FY 2023-24?
The deferred tax was ₹1.55 Lakhs.
9. What was the profit after tax (PAT) for FY 2023-24?
The profit after tax was ₹101.94 Lakhs.
10. How does the profit after tax for FY 2023-24 compare to the previous year?
The profit after tax increased from ₹65.22 Lakhs in FY 2022-23 to ₹101.94 Lakhs in FY 2023-24.
11. What is the EBITDA margin for FY 2023-24?
The EBITDA margin is 5.1%.
12. What is the net profit margin for FY 2023-24?
The net profit margin is 2.02%.
13. What is the current ratio for FY 2023-24?
The current ratio is 1.75.
14. What is the debt to equity ratio for FY 2023-24?
The debt to equity ratio is 0.86.
15. What is the return on equity (ROE) for FY 2023-24?
The return on equity is 7.28%.
16. What is the return on assets (ROA) for FY 2023-24?
The return on assets is 3.92%.
17. What were the net sales for the Agro Products segment in FY 2023-24?
The net sales for the Agro Products segment were ₹2500 Lakhs.
18. What was the growth rate of the Agro Products segment in FY 2023-24?
The growth rate was 7%.
19. What percentage of total revenue did the Agro Products segment contribute in FY 2023-24?
The Agro Products segment contributed 49.6% of the total revenue.
20. What were the net sales for the Agro Chemicals segment in FY 2023-24?
The net sales for the Agro Chemicals segment were ₹1539.22 Lakhs.
21. What was the growth rate of the Agro Chemicals segment in FY 2023-24?
The growth rate was 6%.
22. What percentage of total revenue did the Agro Chemicals segment contribute in FY 2023-24?
The Agro Chemicals segment contributed 30.5% of the total revenue.
23. What is the projected growth rate of the Indian feed industry?
The Indian feed industry is projected to grow at a CAGR of 8% over the next decade.
24. What technological advancements is Narmada Agrobase Limited adopting?
The company is adopting technologies such as AI, GIS, blockchain, and drones.
25. What were the net sales for the Organic Fertilizers segment in FY 2023-24?
The net sales for the Organic Fertilizers segment were ₹1000 Lakhs.
26. What was the growth rate of the Organic Fertilizers segment in FY 2023-24?
The growth rate was 12%.
27. What percentage of total revenue did the Organic Fertilizers segment contribute in FY 2023-24?
The Organic Fertilizers segment contributed 19.9% of the total revenue.
28. What are the key strengths of Narmada Agrobase Limited for FY 2023-24?
Key strengths include a diversified product portfolio, financial stability, and market leadership.
29. What are the key weaknesses of Narmada Agrobase Limited for FY 2023-24?
Key weaknesses include dependency on specific markets and potential supply chain vulnerabilities.
30. What is the expected market value of the Indian feed market by 2028?
The Indian feed market is expected to reach US$19.23 billion by 2028.