Insecticides (India) Limited (532851) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Insecticides (India) Limited Q4 FY '21 Earnings Call hosted by InCred Equities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Satish Kumar from InCred Equities. Thank you, and over to you, sir.

Yes. On behalf of InCred Equities, I welcome you all to the Q1 FY -- Q4 FY '21 earnings call. And from the management side, we have Mr. Rajesh Aggarwal, Managing Director of Insecticides (India) Limited; and Mr. Sandeep Aggarwal, Chief Financial Officer of Insecticides (India) Limited. Now I hand over the call to Mr. Rajesh Aggarwal for his opening remarks.

Thank you very much. First of all, let me take this opportunity to welcome you all for attending this conference call. We'll be covering Q4 and, of course, the full year results. And I'll be talking about the industry scenario, the company's performance and the key takeaways for future. So welcome, friends. First of all, let's discuss the industry scenario. As you are aware, FY 2021 was a challenging year. From the first quarter itself, we saw the outbreak of COVID-19, which was followed by extreme lockdowns -- extended lockdowns, and it's reverse impact on the economy and businesses was visible, both in global as well as domestic markets. In the initial stages, domestic agriculture and agrochemical sector was also affected, as operations were curbed to a certain extent. It recovered and continue to see improvement in demand. Yet raw material, packaging material unavailability; logistic challenges; labor migrations; and comes at the retailer and wholesale level rated operational and supply chain bottlenecks for the most part of the year. So the biggest challenge I see was the cash crunch in the market. And a lot of people were suffering due to COVID in the network, in the team and also the customers, I mean, the farmers. So we had to impose strict credit controls in the market. And we made up our mind that this is not the year to grow, this is the year to sustain and we followed that principle. We tried to push into the market whatever was in demand, and that was one of the reasons that we did not see the surge in the Maharatna sale, though we could hardly maintain it, actually. But our focus was to do more and more cash sales as per market demand because I didn't want to supply too much credit to the market, though that is the integral part of the agrochemical business, you have to sell on credit, but my vision was to do as much as cash sales as possible and try to give the credit only to reliable customers with whom we have the relationship of generations and whom we can trust more. So talking about the company performance in quarter 4 FY 2021. India saw a strong rebound in sales and profitability -- Insecticides (India) was this rebound in sales and profitability, both sequential as well as year-on-year. Company reported revenue from operations of INR 256 crores, with a growth of over 7% Y-o-Y. I would like to highlight that Lethal, in particular, because our generic products, Thimet and Nuvan, they moved out. So I believe that Lethal is one product which can lead our pack of products actually and Lethal become our key focus for the year, and we saw a fourfold increase in the segment, and I believe that Lethal has the capacity to become the largest -- am I audible, clearly? The largest generic product in our range, and we have launched various products in this segment in the last 3, 4 years. Particularly, I would like to talk about Lethal Granules, which we are pushing, then Lethal Gold, and they have taken very good market share in this range. Also, I would like to highlight in the last quarter, we delivered growth despite exit of Nuvan from the company portfolio. In the fourth quarter, the EBITDA was INR 29 crore with a margin of about 11.2%. We also saw a significant improvement in operating margins of industrial sales during the quarter. Net profit of the quarter was INR 22 crore, with margins of about 8.5%. Talking about the full year results. Our revenue from operations were INR 1,420 crores, a growth of 4.2% Y-o-Y basis, delivering the resilient performance during the year. Revenue growth was driven by institutional sales, which was posted a growth of about 20% Y-o-Y and 26% of -- it constitute 26% of the total revenue. Brand sales was almost flat, rather declined by 0.4% and contributed 69%-plus. Maharatna category also posted an increase of about 3.7% Y-o-Y, but the major leading products were Lethal Granules, Pulsor, Hercules and Green Label. Full year EBITDA was INR 152 crore, representing a margin of 10.7%. Net profit, INR 93 crores, representing margins of 6.5%. Despite challenges we faced during the year, we were able to improve profitability in terms of growth and margins. The increase was supported by various cost-control measures we implemented during the year and keeping our focus on efficiency, managing working capital. As there were significant volatility present in the market, one of the main focus area was of cash sales, which helped in generating strong cash flows. Cash generating from operation of during the year was INR 155 crores. In FY '21, our capital outlay was about INR 48 crores, which was utilized majorly in Gujarat and Rajasthan. We also remain committed on improving the capital structure. The total debt was further reduced by INR 92 crores. Now our balance remains robust with net debt of only about INR 10 crores at the end of '21, March '21. Total dividend of INR 2, that is 20% of the face value of the share, was declared by the Board. And in addition, we've declared the buyback of about INR 60 crores, out of which 80% -- more than 80% is done and INR 50 crores is completed. Now I'd like to talk about the new product development. In the last fiscal, we have talked about 7 new products. Though the launches were late, but we got very good response for these products. And we could -- these new products could contribute about INR 32 crores in the last fiscal, and their sales in the current fiscal is bound to grow further. If we look at the -- for last 5 years, the Maharatnas are maintaining their share -- or the revenue contribution from the new products is about 40%, which is maintained. There was -- the last year was a little bit affected. But overall, we are able to maintain that. For substituting Thimet, we have brought Lethal Granules and Tadaki, and they have contributed about INR 56.5 crores in the last fiscal, and I believe that we are going to get a huge growth in this year. Along with this, I would also like to speak about a new product called Hachiman, which is we are bringing in the Japanese collaboration with Nissan. This, again, is a patented product. It is a mixture of 2 herbicides, 1 we manufacture and another comes from Japan. And this product is also going to be launched during this week because our registration is expected soon. It is already cleared, and we are about to get the paper. As we get the papers, in 2 days, the product will be launched, and we are very, very hopeful that this product should contribute a lot to our bottom line as well as the top line. Such new product launches will continue in this year. We have a target of 5 to 6 products, actually. And they will -- they are a part of the product premiumization strategy. In June '20 -- we have launched this product called SOFIA 3 years back. We have just bagged the patent for this. Again, a very interesting product because as a strategy, we have made some mixture products from our R&D center, and we have applied for the patents. For some of these, we could bag the patent and a lot of patents are due, actually. So in totality, company holds about 13 patents and more than 17, 1-7, are in process. The idea is like from our R&D center, we are trying to develop various products. There are some products which are generic products, so we are trying to make the technicals for them in the country. And as there is demand for the solutions, so we are trying to make the new formulations for which we can bag the patents, actually. So we are working in this direction. So the entire focus is around new products, and Maharatnas are the key growth drivers. So the new introductions, which are coming, they are either coming as patented products from Japan or their formulations from our R&D. So we -- at the same time, we are doing the expansions. Expansions are both forward and backward expansion. And the idea is that we wish to complete most of our expansions during this fiscal -- rather, I should say, calendar year. My target internally is Diwali. But this is a good monsoon year, so plus, minus 1 or 2 months, we should be -- means completing all our expansions during this calendar year. So we'll grow in all directions. When I say grow in all directions, I mean to say, we are expanding our formulation facilities in Gujarat as well as Chopanki. In Gujarat, we are setting up our SEZ plant. So we are going to finish the first phase in this fiscal. And once that gets completed, then we are going to start the second phase. In the technical plants, we are also expanding in both the locations in Gujarat and Rajasthan. In Rajasthan, we are increasing our capabilities and the capacities, and we are -- like as I told you, that we are registering many more products, so we have to establish the capability to manufacture these products. So this will be done in Rajasthan. In Gujarat, we are doing the backward integration, like the raw material for certain technicals we are going to make. The idea is Make in India that we are able to do the import substitution. And apart from that, yes, of course, some of the new technical capabilities we are going to develop in Gujarat also. Apart from this, we are also expanding R&D centers. So particularly in Chopanki, Rajasthan, Gujarat and also Shamli which is a biological R&D center. So expansion is on cards at all the locations, and we are going to complete all our expansion projects during this fiscal, and they will start contributing immediately doing a slow pace because the major season will be over, but they will be contributing. And we will be ready for the next year, which I can say will be the major year for growth because this year, we have kept the target of growth as a double-digit target of top line. We target about 10% growth in this fiscal with more growth in the bottom line. So we will be using technology. And we have used in these difficult times and make a lot of use of technology to cover the market and do the penetration -- market penetration. Lot of films on pharma training are released. We have done live programs with the farmers, with the dealers, with the distributors, with the network. We have got a lot of done -- a lot of Whatsapp messages, carton films, musicals. The basic idea is we are using electronic and print media and the social media in best possible manner so that we are in touch with the market because we -- a lot of products are launched in the last fiscal and a lot of new technologies are coming in this year. So since the movement is restricted, we have to take these to the farmers. The ROI in this fiscal is 11.5%. ROCE is 14.8%, and I see it increasing in the next fiscal. The contribution from the Freshness Index, I already talked about, is going to be good, actually, in this year to come. So the key takeaway will be that in case of R&D, we are expanding. Export business is going to multiply next year. Our strategy of tail cutting of generics is going to continue or we are going to bring the new generation solutions for the farmer, and we are going to do the -- like new launches continuously. And these new products, which are launched in the last few years and which are going to come new, are going to be our key growth strategy part. And the integration, both the forward integration and backward integration will continue. And I also believe that biologicals are the strategy for future. So we are also spending on biologicals. And along with this, we are working on expanding our range. And I believe that with this strategy, we should be able to do good in the years to come. We should be able to expand SOFIA, which is the new patented products in our strategy. So far, we have not started filing with the partners, but we are receiving a lot of queries from the partners. So we have to identify and work with the right partners. And in the end, I would again like to talk about Thimet and Nuvan, which have moved out of our range. And despite of these products moving out, we have done good in the last quarter. And our results of the Q1 will be self-explanatory. And I'm very, very confident that we are going to cover up the sales loss, which is caused by these 2 brands, and we are going to create the superstars for the future with our effort. So this will include some of the generics like Lethal and also include the new generation products, which we are strategizing to launch in this year. So with this, I thank you very much and open the house for questions. And if the CFO would like to stress upon certain financial targets, he can do that before we move forward. Thank you.

Yes. Good afternoon, everyone. Myself, Sandeep Aggarwal. Though everything has been shared by our Management Director, Shri Rajesh Aggarwalji, but let me tell you something about segment reporting. We are dealing in 4 segments: insecticide, herbicide, fungicide and PGR and the percentage of insecticide is 58%; herbicide 31%, fungicide is 9% and PGR is 2%. As far as B2B, B2C and export is concerned, B2C sales constitutes 70%, B2B 26% and exports approximately 4%. If we'll see about net sales versus our internal in-house financials, so it is around 50%, 50% both. And Maharatna and other products, 46% is Maharatna sales; and 54% is other brand sales during the year. As we have stressed upon the working capital cycle, our working capital cycle has come down from 184 days to 168 days, and it is mainly due to the reduction in receivable days. The receivables have been come down from 86 days to 65 days only. So that depicts that our strategy of working on cash basis is working now. So rest all financials have already been shared. So this is all from my side. Now you can start the question-and-answer session. Thank you.

[Operator Instructions] The first question is from the line of Ashwin Agarwal from Akash Ganga Investments.

Am I audible?

Yes, boss.

Yes, please.

Yes. I wanted to understand why our company does not have any sales of chlorantraniliprole, which is one of the most sold insecticide in the Indian industry?

I did not get your question correctly, actually. Chloride insecticide, what -- where do you want to...

No, why are we not having any formulations or sales in this particular insecticide because this is one of the biggest insecticides in Indian market? It's called chlorantraniliprole and the patent is held by FMC. And most of our peers are also producing this for the company. So why are we not into this?

Okay. You are talking about chlorantraniliprole. That is a patented pesticide. You have already answered my question. The patent is about to go in the next fiscal FY '22. So my application for this product, 9(3) application is in process. We should clear our application soon. So there are 2 companies which have already backed the registration. We should be the third. The court case is there between these 2 companies. And if any decision comes in the favor of manufacturing before the patent expiries, we will start manufacturing. Otherwise, once the patent expires, then we are going to launch the product. So it's a granular pesticide, also sells as liquid. So a very interesting generic because it is going to become a new generation generic now. So at the moment, it is controlled basically by 1 company. But yes, we are eyeing that market, and we are also going to bring a new generation Japanese solution, which is, I would say, the -- directly in competition to this molecule, and we are expecting to launch it before this Diwali. So that is also in process. So we are trying to work with -- in both the directions. We are going to bring the generic also. At the same time, we are working for the new generation product also.

Sir, 1 more question. Sir, we had received an approval for pesticide plant worth INR 40 crores in the Dahej, which has 2,500 tonnes capacity. So can you just update on the status of this?

I think you are talking about the SEZ plant, the formulation plant. So it has already started operating, but we'll be completing our expansion, the first phase very soon. It is still on actually, delayed due to the COVID situation. So it will be operational. Apart from that, we are also expanding our technical manufacturing capabilities here. So a lot of expansion is in progress. We propose to complete the expansion by Diwali.

[Operator Instructions] The next question is from the line of Rohit Nagraj from Sunidhi Securities.

A good result on Q4, a good come back. So the first question is on the CapEx. So if I check in our presentation, we have mentioned that CapEx of about INR 1.1 billion in next 2 years in phased manner. But right now, you've mentioned that the CapEx will be completed during FY '22. So I just wanted a clarity on this. Sir, will it be the entire CapEx completing in FY '22? Or will there be some spillover in FY '23?

I believe it should be completed, actually, this phase because we have already spent about INR 50 crores in the last fiscal and about INR 50 crores, INR 60 crores will go in this fiscal. So we should be able to complete 1 phase of -- like this phase, which we are working should be over actually. And then, of course, the new expansions always comes in. So first, I would like to complete this. And this, we will be completing in this calendar year.

Right. Sir, the second question is in terms of the growth. So last time, we had mentioned that early in FY '22, we'll be reporting about 15% of revenue growth, but we have reduced the guidance to about 10%. So any specific reason? And given that our first quarter is almost on the verge of completion, how we have seen the sales or the demand from the segment? And were there any issues in terms of placing our products because of the second wave of COVID?

There are no issues as such. But since it was COVID -- again, so this COVID wave has slowed down the movement into the market. So we have put up a lot of inventory. But if we look at the market, there is shortage of everything. There's a price surge in all the raw materials. You are aware, the chemicals are expensive, the oil is expensive, the metals are expensive, plastic, paper, everything is expensive today, actually. So it's a very tricky situation where the prices of all the raw material is going up. Of course, the prices of the final products are also going up, actually. But if something goes up a lot, then it settles also somewhere and then it starts declining. So that trend also is visible, actually, because at 1 stage when you reach the peak, it will start falling. So looking at those, so we don't want to go very aggressive, though the first quarter results will be -- I think it can be better than my annual guidance, what I'm doing. So just looking at the COVID thing, I'm a little afraid in the back of my mind, that's why I don't want to talk too high for this. But the results will be somewhere in between what you are saying, what I'm saying. So can't say. And if it turns out good, we can cross any [indiscernible], actually. So we are prepared. So preparedness is there, but I don't want to talk very high at this juncture.

Understood, sir. Sir, and just 1 last clarification. In terms of the raw material availability costs going up, so how has the situation been in the recent past? And have we been able to pass on the price hike by taking increases in our products or we will still have to absorb some? And concurrent question to that is that in the last couple of years, our EBITDA margins have been in the range of 11%, 12%. And prior to that, it was more or less at around 15% plus/minus. So do we expect the EBITDA margins coming back to, say, 15% plus/minus in the next foreseeable future?

You'll see the improvement heavily in this fiscal. So you'll see a major improvement. I'll not say that I'll achieve that 15% back in this fiscal itself. But I do have the target to do that in the next fiscal. So since we'll be completing our backward integrations, a lot of new products are going to come. They will contribute a lot, actually. So this year, yes, you will see the growth, and it should be visible from Q1 itself. That is my thinking. Let's move ahead and see. So the things look positive, actually, and there will be a major improvement in our bottom line.

Right. And just a clarification on the raw material pricing and on the product pricing, sir?

These prices have gone up, actually. We are also trying to prepare ourselves. And when I'm talking that the margins are going to increase, this means that we are able to pass the things to the market because that is growing for everybody. So we have to pass. There is no other option. So in the generics, in particular, the prices have increased. In some other new generation molecules, they have not. But overall, yes, the things have increased and they are being passed to the market.

[Operator Instructions] The next question is from the line of Ashwin Agarwal from Akash Ganga Investments.

Congratulations on the numbers. And sir, I have a question on what proportion of our active ingredients are outsourced? And going forwards, how do you plan to reduce the dependence on our suppliers?

I don't have the exact number, but the other way if I reply like more than 50% of our production what we do of the technical as we consume in-house, to that reply, I plenty. I only buy few products where particularly from the market, open market, but we have done collaborations, also from the collaboration partners I have to buy their products. So this -- the relationship with the Japanese company is going to expand further because I'm seeing a lot of Japanese products coming on cards this year, actually, and the next year also. So we will be introducing a lot of Japanese new patented products. So this imports and this buying from outside is going to see a little surge, actually, unfortunately. But it will be majorly from Japan, not from China. And we don't buy from China, but from the domestic market, we buy a lot of technicals. But that also, I see reducing slowly because we are moving out of some products, and we are focusing around the brands which we manufacture in-house. So you will see that our in-house consumption is increasing year-over-year. So that will be the key focus. So the products for which we have to buy the technicals from outside, we are slowly moving out of those products, actually. Surely, because some are interesting products, where I cannot manufacture the technical because of the variety and the feasibility. But yes, they are there. Some of them are there. So you will see that percentage slowly moving down.

Great, sir. Sir, one more question. Sir, can you give us the R&D expense for FY '21? And what will -- how do we see this going forward?

We are investing a lot on expansion of the R&D centers, as I told you. So a lot of capital expenditure and the other expenses will be going up in Rajasthan, in Gujarat and also in Chopanki, means Shamli. So all the 3 locations, our R&D expenses are going to see a little surge. And we maintain about 60 scientists at present. The exact number if CFO can share will be better, actually.

The total R&D expenses in this year was around INR 8 crores and approximately, we are investing around INR 10 crores in R&D side.

Great. Sir, and 1 more last question. So we have a tie-up JV with Nissan Chemical Corporation in Japan. So you've spoken about Hakama. So can we just give an update on Pulsor, which is a fungicide, and Aikido insecticide and how this is going, the marketing tie-up?

With Nissan, we are increasing our, like, relationship year-on-year. This year, again, as I told you that a lot of Japanese products will be coming. So we are expecting a few more products from Nissan Japan. You correctly pointed out Hakama was our first product, and -- which is a herbicide. It is maintaining its sales reasonably. Coming down to Pulsor. Pulsor, again, is maintaining our market share. I can say that we are the largest seller of Pulsor in the world in the sense that this molecule Nissan is supplying to all the countries. So India has got the largest share, and we are their largest customer for Pulsor. Apart from this last year, we introduced 1 more multisite called Kunoichi, which achieved a good success. This year, we are expecting to multiply the sales of Kunoichi also. And the new product, Hachiman, which is coming, it is a mixture of Hakama and also one of our product called Selector. So this also is expected to launch this week, and we are getting very good initial results from it, and this product is expected to contribute more than INR 20 crores to our top line, actually, during next 2 months.

The next question is from the line of Deepak Kolhe from Batlivala & Karani Securities.

Congratulations for a good set of numbers. Sir, my first question is, sir, what are the reasons for the margin expansion in this quarter, sir?

Margin expansion is going to come from the product mix, actually, because the product mix which we strategize for this -- means, you want to know about Q4 or you are more interested in the new -- Q1?

Sir, I wanted to know both, sir, means, Q4 and in the coming FY '22, sir?

So Q4, there were 2 reasons, actually, the institutional sales saw a jump. So we were trying to sell it at a reasonable price. We didn't go very low because in the last year or the year before this, we -- in our passion to do more cash sales, we sold the products at lower margins, which affected our profitability. So this year, we were very, very particular that okay, we have to generate cash, but we have to sell product at a reasonable margin. And apart from that, yes, we had, I believe, that -- the CFO was very, very tight and on the expectation of credit notes. And ultimately, the credit notes came out a little lower, so that helped us in expanding our margins. And the way forward is like we are trying to focus on the new generation molecules. Last year, the Maharatna sales did not increase the way it should have. So this year, it is the key focus and a lot of new products are also coming in and our backward integration targets, the products will also complete. So we will start getting the sales from them. So every action is going to lead to margin expansion. So we are confident that we'll be able to improve our margins decently this year.

Okay. Okay, sir. Sir, how big is the opportunity for -- our target market for the recently received patent, sir, Hexaconazole and Carbendazim, sir?

If we talk about this product, this product, we are doing a sale of about INR 20 crores. We have not made partners. So one thing is we can grow the branches by almost 50%. And apart from this, I'm receiving a lot of queries. So maybe not this season, but for the next season, from rabi itself, we'll be looking at partners. And next year, we should be able to multiply the sales because my brand sales will also go up, and we may come out with 2, 3 partners to market this product. So we can multiply the sales.

Any sort of size -- specific size if you want to mention, sir?

If you want the number I can say this year, it may lend between INR 25 crores to INR 30 crores. And next year, you can target INR 50 crores along with the partners.

Okay, sir. Okay. Fine. Sir, and my last question, sir, what will be the CapEx for FY '22?

Unfortunately, your voice breaks in between. If you can repeat the question please?

Sir, is it clear, sir? Hello? Can you hear me, sir?

Yes. Yes. Clear now.

Sir, I want to know what will be the CapEx for the FY '22?

Roughly about INR 50 crores to INR 60 crores. 50 -- you can put a number of INR 60 crores because INR 110 crores would be target, out of which we have spent almost INR 50 crores, so INR 60 crores is balance, that is the target.

[Operator Instructions] The next question is from the line of Abhijeet Bora from Sharekhan.

Can you hear me now?

Yes, please go ahead.

Yes, sir. My line got disconnected in between. So continuing on the previous question on the margin expansion during the quarter, first part was like better price realization for the institutional sales? And what were the other sectors, I missed on that part?

Margin expansion, like the raw material gone up because metal, plastic, paper, chemicals, everything has gone up. And also the crude, you can see it actually. Now even dollar has started going up. So there's impact on all the prices. So -- but we are going to carry this impact to the market, and we are getting that actually from the market. The demand is good. The expectation is good. So the ultimate change which is going to come is through the product mix. Last year, the Maharatna percentage has declined a little. And if you will also see the Freshness Index, it has shown negativity. But this entire negative thing has come due to the COVID. But now we are very, very confident that we are going to do a major expansion in...

Hello?

The line for the management is disconnected. Kindly stay on line till I reconnect you. Ladies and gentlemen, we have the management line reconnected to the call. Thank you, and over to you, sir.

So Abhijeet, could you hear some part of my answer or do I repeat the entire thing again?

Yes, sir. My question was subject to 4Q where you mentioned that the -- there was better price realization for institutional sales. And what were the other factors that contributed to margin expansion in Q4? I missed on that part and guidance for FY '22?

Okay. In the Q4, the brand sales also contributed better. Like a year before this, we were driven by cash sales. So while I was doing the cash sales, I also sold some products at a lower margin. But this year, I was very, very particular that we'll not reduce our margins too much, and we'll do the cash sales. So we were successfully able to do that, and we try to control our margins, actually, looking at the previous year because we had the lesson from the previous year. FY '22. For FY '22, we are focusing around Maharatnas and the new generation products. If you see at the Freshness Index, last year, it showed a little decline because in the COVID year, we could not focus on that too much because the boys were not able to move in the market. So this year, we have made a solution that we are approaching people through the social media, through -- like we are trying to do all type of usage in the electronic media. We have made films. We have made cartoon films. We have made training programs. We are trying to connect dealers, distributors, farmers, teams. So everywhere we are connecting. And the idea is, if we are able to move out into the market, it's good. If we are not able to move on, we are going to connect our customers using this media, actually, so that we are able to inform them over the new product and we are able to train them over the usage of the new products so that we are able to infuse the sales of these products. So this is the key focus for '22, which gives me the confidence that we'll be able to generate good cash flow -- good sales of these products, actually. And we are also about to complete our expansions, which are going to be completed in phases because I told you that the expansions are going on in Gujarat, in Rajasthan. They will get completed one after another, and they will also start contributing. And some of our new products are also expected to come. So looking at everything, I'm very confident that this will able to increase the bottom line of the company.

Okay. And my second question is on like -- I missed on also the revenue guidance. Last quarter, you gave 15% growth guidance for FY '22. And I think that one of the participants said that the revised guidance is 10% now for FY '22. So what is the reason for this lower guidance? Because in the last call, you said that INR 200 crore of incremental revenue can flow in FY '22 from new products less the new ones?

Yes, that's correct, actually. So this year also this -- again, I'm confident that there wouldn't be much changes in this. But since again, the COVID second wave was very horrifying, so that's why I don't want to go very aggressive with this in terms of number. But yes, our first quarter results will be evident, actually. It will be somewhere in the range of 10% to 15% only. Just to keep a reasonable target, I said 10%. Otherwise, there's nothing like that I want to decline my -- I want to reduce the target. The target still persist.

Okay. So it can be in the range of 10% to 15%, right, for the full year and Q1 also?

Yes. Yes.

The next question is from the line of Ashwin Agarwal from Akash Ganga Investments.

Sir, we have developed a product in the biological crop protection called Kayakalp. And we had mentioned there are some 3, 4 other products in the pipeline also. So can you just comment on this, please?

Yes, Kayakalp was a very enthusiastic product for us. It has opened all new segments for the -- in the market. But it was difficult to use. Looking at that, we have [Technical Difficulty] which is the next level of Kayakalp. And we are very, very confident it is going to the market this year. And the response overall so far is very, very positive. I'm not announcing any big number for that because I want to do the launch and do the -- establish the market first and then talk about the results, but it is very, very positive. Along with this, we have also launched biological zinc last year. This year, I'm not introducing any new product because already 4, 5 products are there. So this is the year to establish these products, and then we'll launch new products, actually, in the biological segment.

Okay. Sir, my next question on mancozeb. Sir, there has been a proposal to ban mancozeb along with some other 27 molecules also. So what is going on in that front currently?

Like, there are a lot of discussions which are on with the Ministry because Ministry has some requirements of the data. There is -- like there is some communication gap -- there was some communication gap between the industry and the Ministry. But we have clearly communicated to the Ministry that whatever is the data gap is we have given the clear guidelines. Based on that guidelines, the entire data will be submitted. So I do not say that out of 27, nothing will be banned, but industry is trying to protect more than 20 products, and I'm very, very confident that we'll be able to protect more than 20 because we have given a promise that whatever is the data gap, we'll cover all the data gap, and we are going to present that to the Ministry, after which the Ministry can decide. Because our plea is that if you have given the registration scientifically, you should ban it also scientifically not based on certain motions.

Sir. And I believe mancozeb is an important product for us in India as well as exports. So can you just give us the market share of insecticides in mancozeb?

I don't do state mancozeb. I do use mancozeb in 2 mixtures only. So for us, it is a reasonable product, not a very big product, actually. My state sales of mancozeb is negligible. And these mixtures, again, they are part of my platinum range and Maharatna -- one of the mixtures comes under Maharatna also, I believe. So our total sales coming out of these products would not be huge, actually. It would be to the tune of INR 12 crores to INR 15 crores only, in total.

Great. Sir, and one question on the raw material. Sir, you had mentioned container prices are going up and containers were not available also in the previous year. So have we been able to pass on the cost increases to our customers? Or how have we managed this increased costs?

If we talk about the cost of the container, yes, the customer has paid the cost. And now we have started supplying the product FOB instead of CIF. So the entire cost of the container goes on the customer because, again, this year is the similar situation. The container availability is very, very tight. And the prices have gone up, they are [indiscernible]. So we are not taking the risk, actually. So most of our offers are FOB now. But yes, last -- March was a heavy rush. So we could not supply the desired containers. Again, this year, we find the same problem. But once you see the quarterly results, you will be happy to know the surge in the export sales, actually.

[Operator Instructions] As there are no further questions, I would now like to hand the conference over to Mr. Satish Kumar from InCred Equities for closing comments.

On behalf of InCred Equities, I thank the management of Insecticides (India) Limited for taking the time out and answer the questions from the participants. On behalf of InCred Equities, I will also hope that we continue to engage with the management in future. Thanks.

Yes. Sure. Thank you very much. Thanks, everybody, for your valuable time. Thank you. Thanks.

Thank you.

Thank you. On behalf of InCred Equities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.