INDIAN POTASH LIMITED UNLISTED SHARE
ABOUT INDIAN POTASH LIMITED
INDIAN POTASH LIMITED was established to promote the use of Potash in the whole country. The company handled the potash imports and marketing of potash in the country. The story of Indian Potash Limited began with vision of few dedicated people. Before 1950, the use of Potash was odd and that too limited to few southern states of India. Indian farmers were unaware of Potash to be used as fertilizer.
Indian Potash Limited has stood the test of time in spite of decontrol of Phosphatic and Potasic fertilizers in 1992. Without diluting balanced fertiliser promotion, the company has diversified into cattle feed, dairy, rural warehousing and sugars.
The company is supplying fertilisers throughout the year across whole India and ensures the availability in every corner of the country. The company is producing and marketing cattle feed in northern and southern parts of the country. Indian Potash Limited has capacity to procure and process around 7 lakh litres of milk every day. In 2010, Indian Potash Limited acquired 5 old sugar factories and renewed them to work at optimal levels.
Indian Potash Limited, in collaboration with MMTC Limited (a state owned trading firm) has launched its jewellery showroom, “IPL Swarnalaya” in New Delhi. The showroom will deal in jewellery, medallions and MMTC’s silver jewellery brand, ‘Sanchi’.
Moreover, the company has a plan to construct a greenfield port in Southern Gujarat with an total investment of around Rs. 1,500 Crores. The company already handles fertilisers shipment of more than 3 million tonnes a year at all major and minor ports.
Indian Potash Limited has developed a network of dealers across pan India including inaccessible areas with all its services being coordinated by 15 regional offices.
INCORPORATION DETAILS
CIN | U14219TN1955PLC000961 |
Registration Date | 17 June 1955 |
Category/Sub-category of the Company | Public Limited |
Address of the Registered office and contact details | Seethakathi Business Centre, 1st Floor, 684-690, Anna Salai, Chennai-600 006. Ph.No.28297855/28297869 |
Name, Address and Contact Details of Registrar and Transfer Agent, if any | Cameo Corporate Services Ltd Subramanian Building” #1, Club House Road Chennai 600 002 - India. Ph No : 91-44 - 2846 0390 |
PRINCIPAL BUSINESS ACTIVITES OF THE COMPANY
Name and Description of main products/services | NIC Code of the product/service | % to total turnover of the Company |
Muriate of Potash | 46692 | 38.29% |
Di Ammonium Phosphate | 46692 | 38.04% |
Urea | 46692 | 7.60% |
BOARD OF DIRECTORS
Shri. Sundeep Kumar Nayak, IAS (Chairman)
Shri. B.S. Nakai
Dr. U.S. Awasthi
Shri. Arvind Agarwal, IAS
Shri. Dileep Sanghani
Shri. Amarjit Singh Samra
Ms. Swati Meena Naik, IAS
Shri. Devinder Kumar
Shri. P.C. Munshi
Ms. Reena Kaishing
Shri. Santosh Kumar Dash, Oas (S)
Shri. S.C.Mudgerikar
Shri. M.Murugan
Shri. Shivakumar Gouda Patil
Dr.P.S.Gahlaut (Managing Director)
PARTICULARS OF SUBSIDIARY COMPANIES
Name of the Company | % of shares held |
IPL Sugars and Allied Industries Limited | 100% |
IPL Gujarat Port Limited | 100% |
GoldlineMilkfood and Allied Industries Limited | 100% |
Sri Krishna Fertilisers Limited | 100% |
INDIAN POTASH LIMITED UNLISTED SHARE DETAILS
Total Available Shares: | 2,85,97,200 |
Face Value: | Rs. 10 Per Equity Share |
ISIN: | INE863S01015 |
PAN NO. | AAACI0888H |
Lot Size: | 100 |
Last Traded Price | Rs 1000 |
Market Cap: | 2859.72 CRORE |
SHAREHOLDING PATTERN
(As on 31-03-2020)
S. No. | Shareholders’ Name | Number of shares | % of total Shares of the company |
1 | Indian Farmers Fertiliser co-operative Limited | 97,20,000 | 33.99 |
2 | Gujarat State Co-Op MKTG Federation Limited | 29,88,000 | 10.45 |
3 | Gujarat State Fertilisers and Chemical Ltd. | 22,50,000 | 7.87 |
4 | Andhra Pradesh State Co-op MKTG Federation Limited | 17,82,000 | 6.23 |
5 | Madras Fertilisers Limited | 15,84,000 | 5.54 |
6 | E.I.D Parry (India) Limited | 12,74,400 | 4.46 |
7 | Tamil Nadu Co-Op MKTG Federation Limited | 9,60,000 | 3.36 |
8 | West Bengal State Co-Op MKTG Federation Limited | 9,36,000 | 3.27 |
9 | Karnataka State Co-Op MKTG Federation Limited | 8,64,000 | 3.02 |
10 | Steel Authority of India Ltd | 7,20,000 | 2.52 |
11 | Others | 55,18,800 | 19.29 |
Total | 2,85,97,200 | 100 |
INDUSTRY OUTLOOK
The onset of south-west monsoon was delayedand was weak in most parts ofIndia in theinitial period of FY 2020. Most of the statesexperienced deficit in the rainfall to the extentof 30 – 40% and this resulted in delay in sowingand low consumption of fertilisers.
Rabi sowing was higher in 2nd Half of FY 2020 due to healthy reservoir levels and highexcess rainfall in the North-East monsoon. Thegovernment has increased minimum supportprice (MSP) for six Rabi crops for 2019-20 seasonfollowing the Government’s aim to have MSPat 150% of cost of production. This with theDepartment of Agriculture’s forecasted increaseof acreage from 590.60 lakhhectares to 641.30lakh hectares during Rabi 2019-20 and as aresult both production and imports increased.
With a late surge in the monsoon, the soilmoisture and healthy reservoir levels, the sowinglevels in the rabi season have witnessed healthygrowth. The industry is expected to have reasonable growth for fertiliser salesin the current rabi season with DAP (Di Ammonium Phosphate)/NPK (Nitrogen, phosphorus, and potassium) offtakeexpected to grow at a robust pace as there hasbeen significant moderation in the retail pricesyear-on-year driven by a fall in the import prices.
Urea demand is expected to remain stable as theofftake by farmers remain more or less uniform,given the current price levels.
While retail price of P&K (Phosphatic & Potassic) segment has reduced,industry expects a slight expansion in the contributionmargin for DAP/NPK players which should inturn support profitability.
However, the credit metrics of the industry areexpected to remain subdued given the continueddelay in the subsidy disbursement by thegovernment.
Talking about Sugar industry, post nationwide lockdown in 2020, 502 sugar mills in the country started operations from October 2020 to February 2021. In total they have produced 233.77 lakh tonnes of sugar as of 28th February 2021, which is around 20% increased when compared to 194.82 lakh tonnes produced by 453 sugar mills in last season till 29th February 2021.
KEY FINANCIALS OF INDIAN POTASH LIMITED (In Rs. Crores)
Particulars | 2020 | 2019 | 2018 | 2017 |
Revenue from Operations | 14,483.36 | 15,430.13 | 13,200.56 | 11,728.07 |
EBITDA | 636.21 | 534.82 | 393.79 | 505.46 |
EBITDA margin | 4.39% | 3.47% | 2.98% | 4.31% |
Finance Cost | 253.82 | 283.78 | 151.04 | 148.31 |
Depreciation | 52.31 | 42.53 | 48.85 | 26.98 |
Other Income | 159.86 | 302.41 | 328.93 | 235.47 |
Profit Before Tax and share of net profits of investments | 489.95 | 510.92 | 522.84 | 565.64 |
Share of net profits of investments accounted for using equity method | 341.68 | 134.41 | -0.01 | 0.00 |
Impairment loss on investment in associate company | -269.80 | 0.00 | 0.00 | 0.00 |
Profit before Tax | 561.83 | 645.34 | 522.82 | 565.64 |
Total Tax | 184.78 | 191.01 | 175.30 | 204.62 |
Profit After Tax (PAT) | 377.06 | 454.33 | 347.52 | 361.02 |
PAT margin | 2.57% | 2.89% | 2.57% | 3.02% |
EPS | 131.85 | 158.87 | 121.52 | 252.49 |
BALANCE SHEET OF INDIAN POTASH LIMITED(In Rs. Crores)
Particulars | 2020 | 2019 |
ASSETS | ||
NON CURRENT ASSETS | ||
Tangible assets | 957.24 | 834.08 |
Intangible assets | 5.35 | 8.06 |
Investments accounted for using equity method | 842.44 | 798.61 |
Financial assets | 475.15 | 448.21 |
Tax assets | 87.80 | 130.50 |
Other non current assets | 58.25 | 114.78 |
TOTAL NON CURRENT ASSETS | 2,426.22 | 2,334.24 |
CURRENT ASSETS | ||
Inventories | 2,573.83 | 2,570.54 |
Financial assets | 45.56 | 28.11 |
Trade receivables | 5,408.38 | 4,301.94 |
Cash and Cash equivalents | 561.34 | 765.25 |
Other current assets | 566.51 | 474.18 |
Asset classified as held for sale | 0.00 | 0.52 |
TOTAL CURRENT ASSETS | 9,155.62 | 8,140.55 |
TOTAL ASSETS | 11,581.84 | 10,474.79 |
EQUITY AND LIABILITIES | ||
EQUITY | ||
Equity share capital | 28.60 | 28.60 |
Other equity | 3,631.84 | 3,217.52 |
TOTAL EQUITY | 3,660.44 | 3,246.12 |
LIABILITIES | ||
NON CURRENT LIABILITIES | ||
Borrowings | 97.50 | 292.50 |
Financial liabilities | 60.57 | 37.51 |
Employee benefits obligations | 4.99 | 11.30 |
Deferred tax liabilities (net) | 0.04 | 0.09 |
Other non-current liabilities | 1.28 | 1.27 |
TOTAL NON CURRENT LIABILITIES | 164.38 | 342.66 |
CURRENT LIABILITIES | ||
Borrowings | 3,575.38 | 2,851.54 |
Trade payables | 3,453.90 | 3,280.61 |
Financial liabilities | 425.41 | 494.95 |
Provisions | 72.94 | 72.94 |
Contract liabilities | 67.74 | 76.81 |
Employee benefits obligations | 6.56 | 7.01 |
Current tax liabilities (net) | 94.48 | 67.92 |
Other current liabilities | 60.61 | 34.23 |
TOTAL CURRENT LIABILITIES | 7,757.03 | 6,886.00 |
TOTAL LIABILITIES | 7,921.41 | 7,228.67 |
TOTAL EQUITY AND LIABILITIES | 11,581.84 | 10,474.79 |
DIVIDEND HISTORY
Particulars | 2020 | 2019 | 2018 |
Dividend (final + interim) (In Rs.) | 2.5 | 1.5 | 3 |
Retained Earnings (Consolidated) (In Rs. Crores) | 3,052.29 | 2,678.72 | 2,230.62 |
PERFORMANCE OF THE COMPANY
The company’s total volume sales of all products at 0.62 Crorein FY 2020 tonnes is showing growth over 0.56 Croretonnes clocked during FY 2019.
Revenue from Operations of Indian Potash Limited declined by 6% from Rs. 15,430.13 Crores in FY 2019 to Rs. 14,483.36 Crores in FY 2020. The major reasonfor decline in revenue of thecompany is the absence of Urea imports as StateTrading Enterprise (STE) which had accountedfor Rs 1,658 crores in the previousyear .
Despite decrease in operational revenue, EBITDA of the company increased by 19% in FY 2020 and reached Rs. 636.21 Crores from Rs. 534.82 Crores in FY 2019. EBITDA margins improved to 4.39% for FY 2020 from 3.47% for FY 2019.
Profit after Tax of the company decreased by 17% from Rs. 454.33 Crores in FY 2019 to Rs. 377.06 Crores in FY 2020.
Current Ratio of the company for FY 2020 was 1.18. This shows that the company is maintaining its liquidity efficiently.
Total book value of the company as on 31st March 2020 was Rs. 3,660.44 Crores. The company’s Return on Capital Employed stood at 23% for FY 2020. And the Total Debt to equity ratio of the company as of 31st March 2020 was 1.
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