Sharda Cropchem: Robust performance with high volume growth in Q2 FY25 in agrochemical business and sustained focus on product registrations

Date:10-28-2024

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.

Consolidated Financial Highlights

Key Business Highlights for Q2 FY25

• Agrochemical Segment contributes 82%; Non-Agrochemical Segment contributes 18%

• Overall Volumes have increased by 20.6% Y-o-Y in Q2 FY25; Agrochemical volumes grew by 24.6%

Key Business Highlights for H1 FY25

• Agrochemical Segment contributes 84%; Non-Agrochemical Segment contributes 16%

• Overall Volumes have increased by 30.3% Y-o-Y in H1 FY25; Agrochemical volumes grew by 36.0%

• Capex in H1 FY25 stands at ~Rs. 155 crores

• Product Registrations stand at 2,934 with 1,034 applications globally pending at various stages as on 30th September 2024

• We remain a debt free company with cash, bank & liquid investments of Rs. 656 crores

Commenting on the Results, Mr. 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.″