Sharda Cropchem – Can it get into indian market in a bigger way?

Q3FY24 Notes:

Q3FY24

• Europe 37% to 36.4% Gross margins, Volume from 3300 to 2850
• Latin America 24% to 31% Gross margin, Volume from 422 to 503
• NAFTA region 27% to 12% GM, Volume down by 35.3%
• Rest of world 25% Gross margin: remained same, Volume from 1055 to1105 up by 5%
• Volume 21% down overall

1. Inventory losses due to products returned by customers (due to price fall)
2. Huge Inventory piled up in China, availability is abundant, prices have fallen too much
3. Not affected by Red Sea issue
4. Registration costs went up significantly and became difficult too
5. The same level of ROCEs and asset turn will continue
6. Within the next year prices may become normal or increase but headwinds are there in the near term, gradual recovery would be there