Dhanuka Agritech: see topline growth of 15%, margins maintained at 20% in FY18

The India Meteorological Department forecast of a normal monsoon of 96 percent of long-period average has bought smile to the faces of farmers, said MK Dhanuka, MD, Dhanuka Agritech, in a recent interview, adding that it could be second consecutive year of good rainfall.

Therefore production of food grains is expected to be high in 2018.

For the company, in particular, the topline growth in FY18 would be around 15 percent and the margins would be maintained at current levels of 20 percent, said Dhanuka.

To maintain the margins, the company would also pass on the price increases of raw materials on to the customers. Generic molecule prices were up by 10-15 percent, he said.

Two-third of their raw materials are speciality molecules where prices have been stable and generic molecule is one-third of the component, which saw price increases, he said.

With regards to sales, he said west zone clocks the highest to the tune of 30 percent, while sales from Andhra Pradesh and Telangan came in at 20 percent.