Sharda report decent recovery and is expecting FY25 sales to grow by 15-18%. Agchem demand is good while they are seeing pressure in non-agchem division due to higher freight costs. Concall notes below.
FY25Q1
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Q1 volume growth of 41% with EU volumes doubling (49% growth in agchem & (-39%) decline in non-agchem)
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Demand has been very good in agchem, demand has reduced in non-agchem due to rise in freight rates
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Gross margin breakup: EU (35.5%), NAFTA (22%), LATAM (32%), ROW (38%)
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Top 10 molecules contribute 35-40% of agchem sales
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Have not seen significant sales returns
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80% of their registrations contribute to revenues
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Expects prices to revive in 2HFY25
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FY25 guidance: 15-18% growth in sales and volume with 30-35% gross margins and 15-18% EBITDA margins
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Sales force expenses are ~100-105 cr.
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Capex: 78 cr. (400-450 cr. in FY25)
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Working capital improved to 137 days (vs 158 days in Q4FY24)
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Cash & liquid investments: 624 cr.
Disclosure: Invested (no transactions in last-30 days)
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