Chemical
Sharda Cropchem reports double digit growth in sales, profit during second quarter
Company's gross profit grew by 51.5% YoY to Rs.132 crore in Q2 FY21.
- By ICN Bureau
| October 29, 2020
Sharda Cropchem Limited, a global crop protection chemical company lacross fungicides, herbicides and insecticides, Q2 FY21 revenues grew by 31.1% YoY to reach Rs 424.8 crore.
All the regions have shown positive growth except RoW. In terms of YoY growth, Europe has grown by 57.5%, NAFTA by 18.2%, LATAM by 18.7% and RoW by -23.6%. The gross profit grew by 51.5% YoY to Rs.132 crore in Q2 FY21. Gross margin expanded by 417 bps YoY from 26.9% in Q2 FY20 to 31.1% in Q2 FY21 due to better sales realizations and lower raw material costs.
The company has declared an interim dividend at the rate of Rs.2.00 per equity share of face value of Rs.10.00 each for Financial Year 2020-21.
EBITDA grew by 100.6% YoY from Rs. 29.3 crore in Q2 FY20 to Rs. 58.7 crore in Q2 FY21. EBITDA margin expanded by 478 bps YoY to 13.8% in Q2 FY21. PAT during the quarter stood at Rs. 19.1 crore in Q2 FY21 as against PAT of Rs. (5.6) crore in Q2 FY20. Cash Profit (PAT + Depreciation) for Q2 FY21 stood at Rs. 61.4 crore as compared to Rs. 27.4 crore in Q2 FY20.
The company’s business operations remained insulated from COVID-19 pandemic and Capex stood at Rs 130.1 crore in H1 FY21 versus Rs. 85.1 crore in H1 FY20.
Revenues in Europe surged by 61.1% in Q2 FY21 to Rs 214.2 crore; revenues in NAFTA grew by 41.0% in Q2 FY21 to Rs. 80 crore; revenues in LATAM increased by 8.6% in Q2 FY21 to Rs. 30.2 crore; and revenues in ROW grew by 5.5% in Q2 FY21 to Rs. 19.9 crore.
The company operates with an asset light business model focused on identification and registration of potential molecules with a strong demand. As of 30th September 2020, Sharda owned 2,461 registrations (2,211 registrations for formulations and 250 registrations for active ingredients (AIs)) and has filed 1,029 applications for registrations globally pending at different stages.
Sharda also runs a non-agrochemical business comprising order-based procurement and supply of non-agrochemical products including conveyor belts and general chemicals, dyes and dyes intermediates.
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