22 Atul Ltd | Annual Report 2022-23 Corporate Overview Statutory Reports Financial Statements Atul Ltd | Annual Report 2022-23 Atul Ltd Atul House G I Patel Marg Ahmedabad 380 014, Gujarat India Atul Ltd | Annual Report 2022-23 Reconnect | Reimagine | Regrow Directors’ Report Dear Members, The Board of Directors (Board) presents the annual report of Atul Ltd together with the audited Financial Statements for the year ended on March 31, 2023. 01. Financial results (` cr) 2022-23 2021-22 Sales 5,002 4,929 Revenue from operations 5,062 4,993 Other income 199 90 Total revenue 5,261 5,083 Profit before tax 730 804 Tax expenses (178) (196) Profit for the year 552 608 Balance in retained earnings at the beginning of the year 3,664 3,143 Transfer from comprehensive income 5 (28) Buy-back of equity shares (net of amount adjusted from general reserve) (18) - Dividend (96) (59) Balance in retained earnings at the end of the year 4,107 3,664 02. Performance Sales during the year remained almost the same as last year, registering 1% increase from ` 4,929 cr to ` 5,002 cr. This was mainly due to subdued demand in the Performance and Other Chemicals (POC) segment, which was marginally offset by better volumes in the Life Science Chemicals (LSC) segment; the non-availability of one of the plants due to fire had impacted sales of the LSC segment. Sales in India as well as outside India witnessed no major growth and reported about 1% increase from ` 2,479 cr to ` 2,505 cr within India and about 2% increase from ` 2,450 cr to ` 2,497 cr outside India. Profit before tax decreased by 9% from ` 804 cr to ` 730 cr, mainly due to lower sales volumes on account of muted demand and very thin margins due to the higher raw material and energy prices. Sales of the LSC segment increased by 19% from ` 1,445 cr to ` 1,715 cr because of higher sales prices and volumes in the Crop Protection sub-segment; the EBIT increased by about 67% from ` 191 cr to ` 319 cr. Sales of the POC segment decreased by about 6% from ` 3,484 cr to ` 3,287 cr, mainly because of lower sales volumes in two sub-segments; the EBIT decreased by about 48% from ` 586 cr to ` 302 cr. More details are given in the Management Discussion and Analysis. 03. Dividend and buy-back of equity shares During 2022-23 the Board declared a special interim dividend of ` 7.50 per equity share of ` 10 each fully paid up to commemorate the 75th anniversary of the incorporation of the Company. The Board also recommended payment of a final dividend of ` 25 per equity share of ` 10 each fully paid up. During 2021-22, the Board approved ` 70 cr for the buy-back of equity shares through the open market stock exchange route to return surplus funds to the members of the Company and to improve earnings per share by a decrease in the equity base, thereby leading to a long-term increase in value for the members. The Company bought back 73,296 equity shares at an aggregate consideration of ` 69.90 cr. The buy-back was closed on May 09, 2022. 04. Energy conservation, technology absorption and foreign exchange earnings and outgo Information required under Section 134 (3)(m) of the Companies Act, 2013 (the Act ) read with Rule 8(3) of the Companies (Accounts) Rules, 2014 as amended from time to time, forms a part of this report, which is given on page number 28.
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