Its net profit stood at Rs 49.01 crore in the same quarter of previous fiscal, according to a regulatory filing.

Net income declined to Rs 460.89 crore during July-September quarter of 2020-21 from Rs 504.86 crore in the year-ago quarter.

Expenses also declined to Rs 405.69 crore from Rs 442.76 crore in the year-ago period.

"The revenue growth was adversely impacted primarily due to continued focus on cash sales and collection as a part of strategy and limited interaction of regional sales team with the distributor and farmers amidst the COVID-19 crisis," IIL Managing Director Rajesh Agarwal said.

The second quarter was marked with normal monsoon on an average, resulting in adequate soil moisture and improving agricultural activity on one hand, but uneven and excess rainfall in certain parts of India. This also led to lower pest infestation and reduced frequency of sprays during the quarter, he added.

The company launched three new products during the quarter which contributed Rs 10.6 crore to net sales, with the product ''Dominant'' receiving strong response from farmers.

Agarwal said three product launches -- Lethal Granules, Tadaki and Supremo -- are planned for replacing ''Thimet''.

Tadaki and Supremo will be launched in this month and January 2021, respectively. The revenue from these three products combined is expected to substitute Thimet sales in the coming year, he added.

During the first half of the fiscal, Agarwal said, the company generated robust cash from operations of Rs 156 crore and reduced total debt by Rs 128 crore.

The company is now cash surplus with cash and cash equivalents of Rs 80 crore at the end of September 2020.

In light of strong cash flows, the company''s board of directors have recommended an interim dividend of Rs 2 per share.

The company continues to focus on efficient working capital management, as a result, the overall cash conversion cycle has reduced to 115 days from 184 days in this fiscal, Agarwal said.

"I would like to assure you that with a strong capital structure, new product launches and improved product mix, the management remains fully committed to drive growth, enhance profitability and create value for all shareholders," he added.

Shares of IIL on Monday declined 4.40 per cent to close at Rs 444.40 apiece on the BSE.