Insecticides India Ltd (IIL) disclosed on Monday, December 16, that the Income Tax Department is conducting searches at its registered office and other company locations.
In a regulatory filing, the company stated, "A search by the Income Tax Department is being carried out at the registered office and other premises of the company."
Full Cooperation Assured
The company confirmed its full cooperation with the authorities, emphasizing that its employees are actively supporting the investigation. "The company and its employees are fully cooperating with the authorities and providing them with all necessary information and support," IIL added.
Recent Financial Performance
Despite the ongoing investigation, Insecticides India has shown resilience in its financial performance. For the second quarter ending September 30, 2024 (Q2 FY25), the company reported:
- Net Profit: ₹61.5 crore, a 15.6% increase YoY compared to ₹53.2 crore in Q2 FY24.
- Revenue from Operations: Declined by 9.9% to ₹627 crore from ₹696 crore in the same period last fiscal.
- EBITDA: Increased by 9.2% to ₹89.4 crore from ₹81.9 crore YoY.
- EBITDA Margin: Improved to 14.3%, up from 11.8% in Q2 FY24.
Strong Growth in Premium Products Segment
In Q2 FY25, the company witnessed an 11% growth in its premium products segment. Flagship offerings, Focus Maharatna and Maharatna, contributed to 68% of total B2C sales, up from 65% in the same quarter last year.
Implications for the Business
While the Income Tax Department's searches are ongoing, Insecticides India Ltd's robust financial performance underscores its operational strength and resilience. The company's proactive cooperation with authorities aims to ensure minimal disruption to its business operations.
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