Management said that this quarter, volumes are coming back majorly and prices improving slightly compared to last year. Pricing to improve quarter to quarter.
Q1 FY25 concall summary:
Guidance for FY 25: 15-18% revenue growth and 15-18% EBITDA margins
Product registrations:
Total product registrations as of 30th June 2024: 2928 (about 80% are active)
1040 product registration at approval stage
Capex in Q1 FY25: 78 Cr., FY 25: 400-450 Cr.
Top 10 molecules contribute about 35-40% of total revenue, these top 10 molecules keep changing every year depending on demand situation.
Non-agriculture business:
Drop in demand currently due to high freight rates and high duration.
Management is very optimistic in the future. Non-agri helped company a lot last year when Agri was down.
Agri business:
Management insights: Today demand is matching supply, and companies don’t want to lose market share, hence prices are still not moving up. Once demand increases, prices will move up naturally.
Region wise volume break up:
EU: 5 million units, NAFTA: 4 million units, LATAM: 0.6 million units, ROW: 0.35 million units
Region wise gross margins break up:
EU: 35.5% NAFTA: 22% LATAM: 32%, ROW: 38%, overall: 31%
Region wise registrations break up:
EU: 1625 , NAFTA: 300, LATAM: 750, ROW: 250
Clarification on employees and sales force:
Company has 180 employees in India. It hires consultants abroad to circumvent the variety of legalities and benefit schemes of the countries. Management said they have 350+ sales force who received roughly 100-105 Cr. as commission in FY24.
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