AgroPages-Sharda Cropchem’s net profit surged 121% in Q4 of FY 2015-16-Agricultural news

Sharda Cropchem’s net profit surged 121% in Q4 of FY 2015-16

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Indian agrochemical company Sharda Cropchem posted a 54% sales increase to Rs 5,244 million in the fourth quarter ended March 31, 2016, primarily driven by an overall volume growth of 62.3%, across all geographies and favourable currency impact of 12.4%. This was partially offset by adverse price/product/region mix impact of 20.8%. The fourth quarter of the financial year as always is the strongest quarter with highest quarterly sales. The key contributor this quarter has been the European region. Net profit surged 121% to Rs 1,064 million in the fourth quarter.

Sales of agrochemicals segment rose by 61% to Rs 4,673 million, accounting for 89% of the company’s revenue. Europe was the largest region for the company’s agrochemical business, sales of this region accounted for 67.4% of total income. The proportions for NAFTA, LATAM region were 15.3% and 9.2%, respectively. Sales of agrochemical formulations accounted for 89.7% of total revenue.

Full year results

For the full fiscal year, sales were improved by 15% to Rs 12.2 billion, while net profit up by 42% to Rs 1,750 million.

Sales of agrochemicals business grew by 19% to Rs 10.3 billion, accounting for 84% of the company’s revenue. Europe contributed 55.4% to the company’s total revenue in 2015-16 fiscal year, NAFTA and LATAM accounted for 19.7% and 13.5% of total income, respectively.

The company said that they added 139 registrations in Q4 FY16 and 356 registrations in FY16. Total revenue contribution from the Top 10 molecules has been 60.4% in FY16 as compared to 58.7% in FY15.

Sharda Cropchem plans to make continual Investment in preparing dossiers and seeking registrations in own name. The company will also increase biocide registrations and scale up marketing and distribution of biocides with a focus on Europe.