Sharda Cropchem Ltd (NSE:SHARDACROP)

Q2 2025 Sharda Cropchem Ltd Earnings Call Transcript

Oct 28, 2024 / 10:30AM GMT

Release Date Price: ₹652.65 (+9.85%)

Transcript

Key Points

Positve

Sharda Cropchem Ltd (BOM:538666) reported a 34% year-on-year increase in total revenues for Q2 FY25, driven primarily by the agrochemical segment.
The company's gross margins improved by 250 basis points to 27.6% in Q2 FY25 compared to the previous year.
The company remains net debt-free with cash and liquid investments amounting to INR656 crore as of September 30, 2024.
Sharda Cropchem Ltd (BOM:538666) has a strong pipeline with 1,034 product registration applications globally, indicating future growth potential.
The company has seen a significant improvement in working capital days, reducing by 32 days compared to March 31, 2024.

Negative

The non-agrochemical business saw only a 2% year-on-year increase in Q2 FY25, indicating slower growth compared to the agrochemical segment.
The NAFTA region experienced a negative gross margin of -1.5% due to excess stock purchased at higher prices, impacting overall profitability.
Despite a 25% volume growth in Europe, the company has not fully recovered from the previous year's pricing challenges, affecting gross margins.
The Latin American market faces economic challenges, including currency depreciation and financial restrictions, which could impact future sales.
The company anticipates a conservative revenue growth guidance of 15% to 18% for FY25, suggesting potential caution in market conditions.

Operator

Ladies and gentlemen, good day and welcome to Sharda Cropchem Q2 FY25 conference call hosted by Antique Stock broking (Operator Instructions). Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahawar from Antique Stock broking Limited. Thank you and over to you, sir.

Manish Mahawar

Antique Stock Broking Limited - Senior Vice President

Thank you [nmi] on behalf of Antique Stock Broking. Warm welcome to all the participants on the 2Q FY25 earnings call of Sharda Cropchem. Today we have Mr R V Bubna, Chairman and managing director; Mr. Shailesh Mehendale, CFO; and Mr. Jetkin Gudhka company secretary on the call. Without any delay, I would like to hand over the call to Mr. Bubna for opening remark. Post which, we will open the floor for Q&A.

Thank you and what Mr. Bubna.

Ramprakash Bubna

Sharda Cropchem Ltd - Executive Chairman of the Board, Managing Director, Founder

Thank you, Mr. Manish. Good afternoon and very warm welcome to everyone present on the call

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