AA Plus Tradelink Seeks Market Diversification (Image Source: iStockphoto)
AA Plus Tradelink Ltd has announced a strategic move into specialized fertilizers and pesticides with a hefty investment of Rs. 441 million from MURAE ORGANISOR Ltd. This marks a significant departure for the company, known traditionally for its involvement in commodities like metals, petroleum, and petrochemical products.
The investment is projected to yield substantial profits, with estimated margins ranging from 8 per cent to 13 per cent over the next 12 months, translating to profits between Rs. 35 million to Rs. 57 million, showcasing a remarkable 2000 per cent increase.
Diversification into the agricultural sector comes as AA Plus Tradelink seeks to expand its market reach, both domestically and internationally, capitalizing on the burgeoning demand for premium fertilizers and pesticides. This strategic alignment with global agricultural trends positions the company to tap into regions experiencing rapid agricultural development.
Financially, AA Plus Tradelink has been on a robust growth trajectory, boasting a revenue surge of 32.96 per cent over the past three years, with an impressive 48.86 per cent increase recorded last year alone, reaching an annual revenue of Rs 17.17 Crores. The company’s net profit also saw a commendable rise of 10.54 per cent last year.
The company’s solid liquidity position is evident with a current ratio of 2.82, coupled with minimal debt levels, indicated by a Debt to Equity ratio of just 0.15.
Furthermore, the company’s efficient cash conversion cycle of -22.09 days and an impressive interest coverage ratio of 4024.12 reflect its adept financial management practices, positioning it favorably for sustained growth and capitalizing on emerging opportunities.
