Dhanuka Agritech expects double-digit growth in FY20

 Dhanuka Agritech, manufacturer of a wide range of agro-chemicals, is expecting double-digit growth in the financial year 2020.

The company is expecting a 100 basis points improvement in margins in FY20, said MK Dhanuka, MD of the company, in an interview with CNBC-TV18. One basis point is equivalent to one-hundredth of a percentage.

“The margins in specialty segment are always higher in comparison to generics because of competition," he said, adding that the specialty segment contributes two-third of the total revenues.

Talking about the delay in monsoon, he said, “It is expected that in the next one or two days the monsoon will be throughout India. Therefore, we hope good monsoon from July onwards."

“However, sowing has been delayed and accordingly first-quarter sales have been delayed because April and May are offseason; sales start June onwards. So June sales have been postponed to July,” Dhanuka further added.

Talking about raw materials, he said, “Chinese prices have come down from this year. Last year they went up, but in comparison to last year, in the current financial year, the prices have come down for most of the raw materials.”