Ranvir’s Portfolio

Insecticides India –

Q4 and FY 24 highlights –

Current manufacturing capabilities –

02 Active ingredient plants
06 Formulation plants
01 Biologicals plant
04 R&D centers, Team of 60+ scientists

Capacities –

Active Ingredients ( AIs ) – 15,800 MTPA

Formulations –

Granules – 80,750 MTPA
Powder – 24,770 MTPA
Liquids – 30,900 MTPA

Company is currently making 21 AIs and over 120 formulations

Product wise sales breakup –

Insecticides – 45 pc
Herbicides – 40 pc
Fungicides – 11 pc
Biologicals and PGRs – 4 pc

Segment wise sales breakup –

Branded formulations – 68 pc
B2B sales – 27 pc
Exports – 5 pc

Company is setting up a new AIs + Formulations facility at Behror in Rajasthan. Should go commercial in CY 24

FY 23 saw extreme pressure on profitability due – collapse in export demand ( due overstocking situation ) and inventory write down that company had to take due steep fall in AI and RM prices. Both these factors have reversed to a great extent ( though not fully ) by the end of FY 24

Long term prospects for agrochemical exports from India remain positive – due China + 1. Even the GoI is pushing for increased manufacturing of AIs in India

FY 24 outcomes –

Revenues – 1966 vs 1801 cr, up 9 pc ( new product sales @ 512 cr ie the products launched over last 5 yrs )

EBITDA – 163 vs 122 cr, up 33 pc (margins @ 8 vs 7 pc YoY. Margins in FY 22 were at 11 pc)

PAT – 103 vs 63 cr, up 62 pc

Working capital days @ 150 vs 169

Company has a range of Value Added ( company calls them Maharatna products ) which contribute 60 pc of branded formulation sales. These products grew by 27 pc in FY 24

Total product launches in FY 24 @ 8 products. These products clocked a sales of 50 cr for FY 24

Exports continued to be weak in FY 24 as well. Expecting a recovery in FY 25 as over stocking issues are completely resolved

Aim to take EBITDA margins into double digits inside next 1-2 yrs ( opinion : if this happens, PAT may get a big kicker )

FY 24 volume growth was 20 pc. Topline growth was only 9 pc due price deflation in most products

Aim to take value added sales ( Maharatna products ) beyond 65 pc before FY 26

Company’s domestic formulations mkt share @ 5.5 pc

75 pc of company new product introductions are 9(3) registrations. This improves their pricing power ( incrementally ). Also intend to launch at least 1 product each / yr for next 4-5 yrs in collaboration with Nissan Chemical corporation. These JV products have a gross margins of around 30 pc ( avg of new + old JV products ). Generally, Nissan gives each product to 2-3 players for distribution

Avg gross margins for Maharatna range of products is 35 pc ( varies from 30-40 pc – varying from product to product ). Company level gross margins are currently at 25 pc. Company expects them to inch upto 30 pc – as the agrochemicals mkt recovers in FY 25,26

Seeing much better demands trends in Q1

Disc: initiated a tracking position, hoping for a margin recovery in Q1, Q2. This may provide a 20-30 pc bump in the stock price, biased, not SEBI registered