Latest update by Dhanuka Management in recent interview:
Negatives :
-India has witnessed a lowest rainfall in Aug’23 and hence the demand for products was very weak vs Jul’23.
-Management has said that topline will be 10% less than the projected targets.
Positives :
-Management has said that the company may report lower double digit growth (10-12%) in topline on y-o-y basis; although dry season reported in Aug’23 (Management expectation was higher double digit growth i.e. 16-18%)
-High cost inventory is fully absorbed and now the company is procuring raw material at lower prices. Also, company has increased prices of products in Aug and will continue till Sep’23
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Improvement in gross margin and operating margins by 200 bps and 100 bps respectively.
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New CAPEX plant at Dahej will generate Rs 50 cr in current year and 100cr next year. They are looking for a tie up with Japanese companies for production of technical molecules which will be announced before Mar’24.
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