DIL holds 91.2% equity stake in Fermenta Biotech Limited (FBL).
DIL Limited announced its unaudited financial results for the quarter ended 30th June, 2019.
• Total Revenue (including other income) at Rs. 84.09 Cr as against Rs 83.45 Cr in Q1 FY19
Un-audited Results of Fermenta Biotech Limited, 91.2% Subsidiary of DIL Limited
Fermenta Biotech Limited (FBL) is the only manufacturer and supplier of Vitamin D3 (Cholecalciferol) in India and amongst the leading players globally. Apart from Vitamin D3, Fermenta also possesses expertise in integrated biotechnology solutions such as enzymes forantibiotic synthesis and other niche APIs.
During the quarter, Fermenta Biotech Limited had taken a planned shutdown of Dahej plant to carry out major repairs and maintenancework and de-bottle necking programme which was completed on May 29, 2019. Post completion of this de-bottlenecking programme, theproduction capacity has increased by approximately 15%. The de-bottle necking programme is part of the overall strategy of FBL to increase the production capacity.
The shareholders and creditors of DIL Limited and Fermenta Biotech Limited have approved the merger of Fermenta Biotech Limited into DIL Limited by voting on 8th July 2019 at the NCLT convened meeting. The merger process is awaiting final approval of NCLT. Post the merger, the name of DIL Limited will be changed to Fermenta Biotech Limited.
Commenting on the performance, Satish Varma, Managing Director, Fermenta Biotech Ltd. said “The start of the new financial yearhas been satisfactory with Q1 FY20 Revenue at Rs. 84.1 crore as against Rs 83.5 crore for Q1 FY 19 despite nearly one-month maintenance and de-bottle necking shutdown taken in May 2019.
During the quarter, the Revenue from Vitamin D3 for Pharmaceutical use has been Rs. 34 crore and contributed 45% to overall revenueas compared to 29% in Q1FY19. The Revenue from Vitamin D3 for Animal Feed use has been Rs. 31 cr and contributed 41% to overall revenue as compared to 47% in Q1FY19. The prices of Vitamin D3 for Animal Feed have shown weaker tone as compared to earlier quarters.