Robust performance with high volume growth in Q2 FY25 in agrochemical
Sharda Cropchem Limited, a fast-growing IP driven agrochemicals company with a peer position in the generic crop protection chemicals industry, has announced its unaudited financial results for the quarter and half year ended 30th September 2024.
In Q2 FY25, Sharda Cropchem’s revenue grew 34 per cent year-on-year (Y-o-Y) to Rs 776.90 crore, against Rs 580.80 crore in Q2FY24, primarily driven by higher volumes and a gradual price increase. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) more-than-doubled to Rs 84.8 crore, from Rs 37.7 crore in the previous-year quarter. Ebitda margin, meanwhile, improved 440 bps Y-o-Y to 10.9 per cent.
During Q2 FY25, agrochemical segment contributed 82% and non-agrochemical Segment contributed 18%. Overall Volumes have increased by 20.6% Y-o-Y in Q2 FY25 and agrochemical volumes grew by 24.6%. The company’s Capex in H1 FY25 stood at ~Rs. 155 crores and product registrations stand at 2,934 with 1,034 applications globally pending at various stages as on 30th September 2024.
Sharda Cropchem remains a debt free company with cash, bank & liquid investments of Rs. 656 crores.
Commenting on the Results, Ramprakash Bubna, Chairman and MD, said, “Despite the global industry challenges, including subdued demand and pricing pressures, we have delivered strong performance in Q2 and H1 FY25 compared to last year. Revenue in Q2 FY25 increased by 34%, and H1 FY25 by 28%, primarily driven by higher volumes and a gradual price increase. We saw volume growth across all regions, with Europe and NAFTA being key contributors. Agrochemical volumes grew by 24.6% in Q2 FY25 and by 36.0% in H1 FY25. We are optimistic about improving gross margins moving forward.
“Our extensive pipeline of registrations showcases our resilience and our commitment to growth. To drive sustainable growth, we intensify our focus on operational efficiencies. This enhances profitability and organizational agility, ensuring a strong foundation for future growth. We are happy to emphasize our ongoing plan to increase product registrations in FY25 with capex guidance of Rs. 400-450 crores is on track driving revenue growth, improved competitiveness, and increased customer satisfaction.”
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