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Fermenta Biotech Limited
Annual Report 2019-20
Company DIL Limited, enhancing footprint in over 50 countries in addition to spaces on leave and license basis at
shareholders value. The Company is being a dependable supplier to more than Mumbai and Thane on fixed term contracts
engaged in the manufacture of Vitamin 300 global customers. with provisions for incremental license fees.
D3, other specialty APIs, biological Fermenta understands the importance The Company enjoys 100% occupancy in
enzymes and also offers integrated of its products and services in the sectors these properties. The revenue generated
biotech-based environmental solutions. of health and hygiene, which positively from real estate helps the Company service
The Company also produces a range of improves the lives of end consumers the real estate debt. Given the strength
variants: crystalline, oil, resin in oil, cold across the world. Fermenta endeavours to of our brand and quality of services, the
water dispersible and feed grade powder, provide customers (and end consumers) Company enjoys good occupancy in its
which can be used in applications like safe and sustainable products. properties and expects high renewals of
pharmaceuticals, dietary and nutritional licensed contracts.
supplements, feed premixes, as well as Real estate
food and beverage fortifications and The real estate vertical contributed 6%
rodenticides. The Company’s quality and of the total revenue of the Company in
service capability is validated by its sales FY 2019-20. The Company licensed office
Financial overview reserves and surpluses. The Company’s respectively in FY 2019-20 compared to
Analysis of the profit and loss statement equity share capital stood at 2,88,47,322 1.90 and 1.33, respectively in FY 2018-19.
Revenue: Revenues from operations equity shares of H5 each as on March 31, Inventories including raw materials,
reported a 27.61 % decline from H404.67 2020 as compared to 91,72,792 equity work-in-progress and finished goods
crores in FY 2018-19 to reach H292.95 shares of H5 each as on March 31, 2019. among others increased by 46.68 %
crores in FY 2019-20. Other incomes of the Long-term debt of the Company from H87.66 crores as on March 31, 2019
Company accounted for a 4.04 % share decreased by 24.72 % to H101.78 crores as to H128.58 crores as on March 31, 2020
of the Company’s revenues reflecting on March 31, 2020 owing to repayments owing to backward integration, opening
the Company’s dependence on its core from internal accruals. Net debt-equity of the manufacturing process in German
business operations. ratio of the Company stood at 0.56 in FY subsidiary and the restriction on the
Expense: Total expenses of the Company 2019-20 compared to 0.42 in FY 2018-19. movement of sales in the last week of
decreased by 9.18 % from H288.83 crores Finance costs of the Company March due to COVID-19.
in FY 2018-19 to H261.85 crores. Raw decreased by 7.32% from H20.65 crores in Due to slow collections in March 2020
material costs, accounting for 27% share FY 2018-19 to H19.14 crores in FY 2019- due to the COVID-19 pandemic there was
of the Company’s revenues increased from 20 following the repayment of liabilities. an increase of 6.45% in trade receivables
23% in FY 2018-19, owing to a decrease The Company’s interest cover stood at a from H65.54 crores as on March 31, 2019
in the animal feed sales realisations while comfortable 4.05 in FY 2019-20. to H69.77 crores as on March 31, 2020.
volumes remained consistent. Employee Applications of funds More than 95% of the receivables were
expenses, accounting for a 17% share of Fixed assets (gross) including Capital secure and considered good. The debtors’
the Company’s revenues, decreased from Work in Progress of the Company turnover cycle increased from 56.12 days
H53.18 crores in FY 2018-19 to H50.03 increased by 26.61% from H237.85 crores in FY 2018-19 to 86.94 days in FY 2019-20,
crores in FY 2019-20. largely due to collections being hampered
as on March 31, 2019 to H301.14 crores as
Analysis of the Balance Sheet on March 31, 2020 owing to an increase in in March 2020 due to COVID-19.
Sources of funds building, plant and machinery and utilities Cash and bank balances of the Company
The capital employed by the Company for the backward integration project. decreased from H91.13 crores as on March
increased by 23.50 % from H250.56 crores Depreciation on tangible assets increased 31, 2019 to H33.11 crores as on March 31,
as on March 31, 2019 to H309.44 crores by 26.18 % from H11.89 crores in FY 2018- 2020, largely due to the repayment of the
as on March 31, 2020. Return on capital 19 to H15.00 crores in FY 2019-20 owing to long term loan to the tune of around H60
employed, a measurement of returns an increase in fixed assets during the year crores. There were also capex investments
derived from every rupee invested in under review. in the backward integration and the
the business decreased from 51% in FY Company opening of the subsidiary in Germany
2018-19 to 14% in FY 2019-20 due to a Working capital management which contributed to depletion of cash
lower turnover driven by lower animal feed Current assets of the Company reserves.
realisations.
decreased by 4.08 % from H295.61 crores
The net worth of the Company as on March 31, 2019 to H284.01 crores as
increased by 23.50 % from H250.56 crores on March 31, 2020 owing to a reduction
as on March 31, 2019 to H309.44 crores as in sales. The Current and Quick ratios of
on March 31, 2020 owing to increase in the Company stood at 1.46 and 0.80,
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