Q2FY24 Results
Industry Headwinds
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Revenues impacted due to high channel inventory
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Price erosion due to heavy dumping by China
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Demand continuous to be sluggish
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Price pressure is as intense as ever
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Margins improved due to efficiencies in the processes (investment on equipment upgrade helped ), new products with better margins
Factors that impacted this are broadly due to below
- Product Mix (Promoted products that are more profitable )
- Cost Management ( Logistics, Fuel, People )
- Productivity and Efficiency ( Investment in R&D, process efficiencies , reduced waste)
- Innovation and R&D ( Added more people )
- Customer centric Approach – Helped to understand current market conditions and understand customer requirements
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Revenue Mix – Domestic 48%
Margins
Gross Margins 40.6% ( vs 35.5% same period last year )
EBIDTA Margins 14.6% (vs 12.1% same period last year )
PAT Margins 7.5% ( vs 6.9% same period last year )
- One time interest cost of 1.98 crore
- Added 27crore worth of fixed assets
- Focusing more on data driven decision making, to achieve this, we are in the process of implementing S/4 Hana
- Working Capital days increased from 63 to 72 days (this is due to more domestic sale and that is the nature of domestic market, but sill Punjab is best when compare to peers )
- New molecules commercial supplies will pick in H2
- 40% of the new enquires are from non agchem space
- Expecting few registrations from Europe (very soon )
- Metconazole , capacities are fully utilized
- Lalru facility is mainly for Pharma and Specialty products (Current utilization is 55% )
- Looking for new site for Agchem products
Growth / Margin Guidance
18 – 20% Revenue growth
Aiming to achieve 18% EBIDTA Margins
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