Sharing notes from their AGM.
AGM24 notes
- Seeing good traction with small formulators and have broken through some large customers
- B2B growth was driven by Saykha plant, B2C volume growth is higher but lower prices resulted in lower B2C revenue growth
- Sales return are always in the range of 1% to 2%, however in FY24 it was slightly above 2% because they have created additional provision on the basis of historical data based on the opinion of newly appointed statutory auditor
- Target to launch 8 to 10 product every year With 9(3) registrations in pipeline and it will be a continuous process.
- Public and animal health is at nascent stage of growth, they have 12 brands and are expecting good growth in coming years
- Have started brand business in southern states and normally it takes 18 to 24 months to develop a market. Around 20% of total revenue comes from new states which were added in recent years.
- Saykha capacity will reach optimum utilization in 3-years, current production is in-line with target
- 50 day cash conversion cycle will not be achievable with scaleup in Saykha plant (higher receivables in B2B + higher inventory). 80-85 days cash conversion cycle is new normal
- Normal payables: 45-120 days. Sometimes pay suppliers earlier to avail cash discount
- Financial restatement happened after hiring of one of the Big-5 auditor
- No major capex plans for 2-3 years
- Technical plant they are doing 5 synthetic Pyrethroids and 4 others (CTPR, thiamethoxam, pymetronzine, tebuconzole)
- Saw weak exports in Q1 due to delays in export to Bangladesh due to civil unrest
Disclosure: Invested (no transactions in last-30 days)
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