Another bad set of nos from Sharda, they continue facing inventory issues and sales returns. Sales declined by 20% and they reported 28 cr. loss this quarter. Some of their formulations saw price drop upto 70%, with their overall portfolio witnessing price drop of 45%. The most interesting and weird part was they had a volume growth of 20% this quarter! Concall notes below
FY24Q2
- Q2 sales returns: 70 cr.
- Q2 inventory hit: 13 cr. (84 cr. in H1FY24)
- Volumes picked up in Q2 (19.7% YOY, 18.8% in agchem and 30.3% in non-agchem) but have been hit due to lower realizations (>40% price drop)
- Witnessing good demand in Q3, but prices are expected to revive slowly as global capacity and inventory is very high
- For Q2, overall volume are (+)20%, price & product mix change (-)45%, currency exchange (+)5%
- Gross margin breakup: EU (34%), NAFTA (5%), LATAM (28%), ROW (45%)
- H1FY24 Capex: 217 cr. (400-450 cr. in FY24)
Disclosure: Invested (position size here, sold shares in last-30 days)
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