CIC Holdings records solid 1Q amid removal of fertiliser import ban

Diversified conglomerate and agri sector major CIC Holdings reported a solid first quarter, helped by the removal of the import ban on chemical fertiliser and other agrochemicals, though the group’s finance cost surged amid the sharp rise in interest rates and higher borrowings. 

For the quarter ended on June 30, 2022 (1Q23), CIC Holdings reported a revenue of Rs.15.3 billion, up by 69 percent from year-on-year, amid the group’s crop solutions, livestock solutions and industry solutions segments contributing to the bulk of the revenue. 

The crop solutions segment reported a revenue of Rs.5.1 billion—likely benefiting from the removal of fertiliser import ban—compared to Rs.2.8 billion a year ago and the livestock solutions segment reported a revenue of Rs.4.3 billion, compared to 
Rs.2.6 billion.

. The crop solutions segment generated an operating profit of Rs2.7 billion, compared to Rs.540.7 million a year ago and the operating profit of the livestock segment stood at Rs.1.1 billion, as opposed to Rs.255.8 million a year ago. 

The industrial solutions segment reported a revenue of Rs.2.4 billion for the quarter under review and an operating profit of Rs.997 million, compared to a revenue of Rs.966.1 million and an operating profit of Rs.123.2 million a year ago.

The group’s other business segments— agri produce and health and personal care— also reported healthy revenues and 
profit gains.

Accordingly, the group’s earnings for the quarter under review was Rs.5.58 a share or Rs.2.1 billion, compared to earnings of Rs.1.94 a share or Rs.736 million reported for the corresponding period of the previous year.
However, the group’s net finance cost rose by over 1500 percent to Rs.1.9 billion during the quarter, from just Rs.112.2 million a year ago, reflecting the impact of higher interest rates on its borrowings. 

Between March 31, 2022 and June 30, 2022, the group’s loans and borrowings rose over Rs.4.6 billion to Rs.15.6 billion.   

As at June 30, 2022, the Captain family-owned Paints & General Industries Limited held a 53.31 percent stake in CIC Holdings, while the Employees’ Provident Fund (EPF) had a 9.06 percent stake. The EPF also had a stake of 12.7 percent in the company’s non-voting shares, as its single largest non-voting shareholder.