Dhanuka Agritech –
Q1 FY 25 concall and results highlights –
Revenues – 494 vs 369 cr, up 33 pc ( massive jump, volume growth was 39 pc !!! )
Gross Margins @ 35 vs 33 pc
EBITDA – 72 vs 44 cr, up 64 pc (margins @ 15 vs 12 pc)
PAT – 49 vs 33 pc, up 48 pc
Guiding for 20 pc topline growth for FY 25
Three of company’s newly launched products – Purge, Lanevo and Mycore – are doing exceedingly well in the marketplace and exceeding even the company’s expectations
Plan to launch two – 9(4) “me too” and two – 9(3) “exclusive” products in current FY
Product wise sales breakup –
Insecticides – 25 pc
Fungicides – 10 pc
Herbicides – 50 pc
Others – 15 pc
Rains have been much better than last year but still not as good as was expected. In July, the rains were erratic affecting the sales of herbicides. IMD forecasts for Aug,Sep are above avg
RM prices are largely stable
Company has approved a stock – buyback worth Rs 100 cr at a price not exceeding Rs 2000 / share
Because of erratic rains in July, expecting low double digit topline growth in Q2
Guiding for an EBITDA margin of 18 pc vs 19 pc in FY 24 ( LY, the margins were exceptionally good )
Currently, 9(3) kind of exclusive molecules ( launched in collaboration with Innovators ) contribute to 25 pc of company’s turnover
Company is working with some innovators to get CMO opportunities to make patented AIs. Nothing has been finalised yet
Currently, the Dahej plant ( making AIs ) is operating in negative EBITDA zone. To start making one more AI from Dahej before FY 25 end. Also exploring opportunities for CMO of patentented molecules from Dahej facility
In collaboration with Kimitech ( Spanish Company ) – should bring in few new Biological products in India by end of FY 25. Bio – agri inputs are a fast growing area and can potentially be a large mkt going fwd ( in long term )
Expect Dahej facility to start making money in FY 27
The patented products ( that the company in-licesnces ) from Innovators contribute to aprox 500 cr of company’s topline at present
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
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