NACL Industries Limited — Earnings Release 2022

Aug 7, 2021

NAGARJUNA NACL Industries Limited

Ref: NACL/SE/2021-22 07% August, 2021

1)	BSE Limited	2)	National Stock Exchange of India Ltd
	Phiroze Jeejeebhoy Towers,		Exchange plaza, 5th Floor
	Dalal Street,		Plot No.C/1G Block,
	Fort, Mumbai,		Bandra- Kurla Complex, Bandra (E)
	Mumbai-400001		Mumbai - 400051
	Company Code:524709		Script ID:NACLIND

Dear Sir,

Sub: Press Release

Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015-reg.

Please find attached a copy of communication released to the press.

Kindly take the same on records.

Thanking you,

For NACL Industries Limited

\ Qrudecashy

Satish Kumar Subudhi Company Secretary & Head-Legal

August 5, 2021

Press Release

Highlights of the Company Performance in Q1 2021-22

Revenue from operations for the Quarter ended June 30, 2021 is = 324.68 Cr, registering a growth of 29%, Earnings Before Interest, Depreciation and Tax (EBIDT) and Profit After Tax (PAT) for the Quarter ended June 30, 2021 stood at = 31.54 Cr and & 14.31 Cr respectively compared to = 21.38 Cr and = 5.36 Cr in the corresponding period of previous year.

Performance at Glance

Key Updates on Q1 2021-22

• » For the quarter ending June'21, Exports business grew by more than 40% over the corresponding quarter of last year, despite the logistic hurdles across the globe in general and to US and Europe in particular. The outlook for Q-2 looks positive with good order book for technicals and formulations.
• « Domestic retail witnessed a growth of 11% over the corresponding quarter of last year, despite impact due to second wave of COVID which penetrated to villages too this time. It impacted farmers and trade. Also, we witnessed delay in rainfall in states like Gujarat, Rajasthan, Madhya Pradesh and Uttar Pradesh leading to a delay in sowing activities in these areas. With improvement in rains, outlook for Q2 is positive.
• « Domestic institutional witnessed 50% growth over the corresponding quarter of last year.
• « The increased fuel costs are impacting some input materials and logistics costs. Input supplies are stable and adequately planned to meet the increased volumes at our plants.
• « In line with the ongoing thrust on strengthening the product pipeline, the company has planned to add three new products to its portfolio in H2 FY 21-22.
• « Upon receipt of GLP certification, the NACL R&D Centre has initiated various GLP related works. Formulations are being developed for introduction in Indian market. Process has been developed for manufacture of an import substitute intermediate for Active Ingredient.
• * Canstruction activities at Dahej in Gujarat for greenfield project is progressing as per schedule.
• « Srikakulam is continuing operating at optimum level. The company has taken all precautions against COVID and ensuring the continuity of production.

AGARJUN NACL Industries Limited

• * Ethakota plant production is continuing taking all precautions against COVID and started commercial production of 2 new formulations.
• *" CARE has upgraded the existing rating for Long Term & Short-Term Bank Facilities. For Long Term - Revised from CARE A-; Positive to CARE A; Stable and for Short term - Revised from CARE A2+ to CARE A1.
• *» The Company has allotted the remaining 15.80 lakhs (out of the total 50 lakhs allotted) equity shares of face value <1 each to Mrs.K.Lakshmi Raju, Promoter of the Company upon exercise of the warrants.
  • *" Company declared First Interim Dividend of = 0.10/- per equity share (representing 10%) on the equity share of = 1/- each fully paid up for the financial year 2021-22.

Comments from Mr. Pavan Kumar, MD & CEO

"The results for Q1 were driven by strong performance in sales and manufacturing operations. The second wave of the pandemic caused considerable disruption to the normal functioning of the organization. NACL, however continued to keep operations going as much as possible following the required safety protocols.

The Company is making significant investments in its manufacturing capacities in anticipation of uptick in growth and demand. The company's projects are progressing well and the outlook for Q2 is positive.

About NACL

NACL was established in 1993. The Company started as an Active Ingredient manufacturer and has built a sizable business in Domestic Retail, B2B and Exports segments. Many of the Company's customers are large MNCs with longstanding relationships. The Company has also emerged as a strong player in the formulations business with over 50 products being retailed covering all major crops and product categories such as Insecticides, Herbicides, Fungicides and Plant Growth Regulators.

For more information: visit https://naclind.com/

For NACL Industries Limited

S. warez Head - Corporate HPD

Cautionary Statement:

Except for historical information, all of the statements, expectations and assumptions, contained in this presentation may be forward-looking statements that involve a number of risks and uncertainties. Although NACL attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. Other important factors which could cause these statements to differ materially include economic conditions, Government policies, dependence on partnerships, retention of key personnel, technological advances that may make our service offerings less competitive; NACL does not undertake to update any forwardlooking statements that may be made from time to time. s