Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q2 FY25 Earnings Presentation
35 slides from Sharda Cropchem's earnings presentation, Oct 25, 2024
Slide 1: Stock exchange filing letter for investor presentation
25th October, 2024 To, National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoi Tower, Exchange Plaza, 5th Floor, Plot No. Dalal Street, C/1, Mumbai – 400 001 G-Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Trading Symbol: SHARDACROP Scrip Code: 538666 Subject: Investors /
Slide 2: Securing Harvests, Nurturing Futures. Investor Presentation October 2024
SECURING HARVESTS, NURTURING FUTURES. Investor Presentation October 2024
Slide 3: Safe Harbor
SAFE HARBOR This presentation has been prepared by and is the sole responsibility of Sharda Cropchem Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or in
Slide 4: About Sharda Cropchem Limited
About Sharda Cropchem Limited
Slide 5: Fast-growing global agrochemicals company
“We are a fast-growing global agrochemicals company with a peer position in the generic crop protection chemicals industry. Our vast and growing library of dossiers and IPRs provide us solid foundations for growth in the global marketplace, especially in Advanced Markets such as Europe, North Americ
Slide 6: Agrochemical Focused Company
AGROCHEMICAL FOCUSED COMPANY Sharda Cropchem is an Intellectual Property (IP) driven company engaged in marketing and distribution of wide range of formulations and generic active ingredients Asset Light Business Model : Efficiently channelizing time and resources for strengthening core competency o
Slide 7: Asset Light Business Model
ASSET LIGHT BUSINESS MODEL Overall Agrochemical Value Chain Sharda’s Operating Area √ √ √ √ Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution Highly flexible operating model Manufacturing of AIs and Focus on identifi
Slide 8: Increasing Global Presence with a Widespread Distribution
INCREASING GLOBAL PRESENCE WITH A WIDESPREAD DISTRIBUTION Presence Global Resource Distributors CAPEX incurred in H1FY25 80+ countries Deployment 525+ ~Rs. 155 Cr. across Europe, NAFTA, LATAM & RoW 500+ Over the years, the Company has built a strong brand franchise within our global markets; we are
Slide 9: The Sharda Advantage
The Sharda Advantage Healthy Global Reach Wide Product Relationships with Range Suppliers One Stop Solution Quality with Faster Sales Provider for Crop Affordability Service Care Products
Slide 10: Way Forward
WAY FORWARD 1 2 Forward Integration - Build Sales Force Expand & Strengthen Distribution Presence ✓ Leverage market presence and execution capabilities ✓ Adopt the factory to farmer approach and be a one stop ✓ Expand geographical reach using existing library of dossiers solution provider ✓ Two-fold
Slide 11: Industry Outlook & Growth Drivers
INDUSTRY OUTLOOK & GROWTH DRIVERS Global crop protection INDUSTRY DRIVERS (In Billion USD) – CAGR of 4.3% A Growing Population: Global population is set to increase by 1.2 billion by 2030 134.7 and 2 billion by 2050, while the middle class will more than double to 4.9 billion by +4.3% 2030 92.2 A gr
Slide 12: Experienced Management
Experienced Management Mr. Ramprakash V. Bubna Mr. Ashish Bubna Mr. Manish Bubna Chairman & Managing Director Whole Time Director Whole Time Director ✓ Holds a Bachelor’s Degree of Technology in Chemical ✓ Holds a Bachelor’s Degree in Commerce from the ✓ Holds a Bachelor’s Degree in Chemical Enginee
Slide 13: Q2 FY25 Financial Highlights
Q2 FY25 Financial Highlights
Slide 14: Q2 FY25: Segment Wise Highlights
Q2 FY25: SEGMENT WISE HIGHLIGHTS Cr. Agrochemical Segment Non-Agrochemical Segment TOTAL REVENUES 76% 82% 24% 18% % of Revenue 100% 100% +44% +2% +34% 634 140 143 777 581 440 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 On Consolidated Basis 13
Slide 15: Q2 FY25: Product Wise Highlights (Agrochemical Segment)
Q2 FY25: PRODUCT WISE HIGHLIGHTS (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 55% 56% 30% 22% 15% 22% % of Revenue 100% 100% +47% +107% +44% 356 +6% 140 634 138 130 242 440 68 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 14
Slide 16: Q2 FY25: Region Wise Breakup (Agrochemical Segment)
Q2 FY25: REGION WISE BREAKUP (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 53% 64% 30% 20% +75% -5% +44% 404 133 126 634 231 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 440 LATAM Region RoW 11% 9% 6% 7% +17% +74% 58 46 50 26 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25
Slide 17: Q2 FY25: Region Wise Breakup (Non-Agrochemical Segment)
Q2 FY25: REGION WISE BREAKUP (Non - Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 16% 17% 61% 65% +5% +7% +2% 23 24 86 92 140 143 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 LATAM Region RoW 6% 5% 17% 13% -5% -18% 8 7 24 19 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 F
Slide 18: Q2 FY25: Financial Highlights
Q2 FY25 : FINANCIAL HIGHLIGHTS Cr. Revenues & GP Margin EBITDA Profit After Tax 25.1% 27.6% +125.0% +34% 85 42 777 581 38 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 -28 Q2 FY24 Q2 FY25 ✓ Gross Margins at 27.6% have come back to normalcy and it is expected to ✓ Revenue in Q2 FY25 increased by 34% primarily impr
Slide 19: H1 FY25 Financial Highlights
H1 FY25 Financial Highlights
Slide 20: H1 FY25: Segment Wise Highlights
H1 FY25: SEGMENT WISE HIGHLIGHTS Cr. Agrochemical Segment Non-Agrochemical Segment TOTAL REVENUES 75% 84% 25% 16% % of Revenue 100% 100% +43% +28% -18% 1,313 303 1,562 249 1,219 916 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 On Consolidated Basis 19
Slide 21: H1 FY25: Product Wise Highlights (Agrochemical Segment)
H1 FY25: PRODUCT WISE HIGHLIGHTS (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 54% 51% 25% 22% 21% 26% % of Revenue 100% 100% +36% +81% +43% 674 +28% 347 1,313 292 495 916 229 192 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 20
Slide 22: H1 FY25: Region Wise Breakup (Agrochemical Segment)
H1 FY25: REGION WISE BREAKUP (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 52% 58% 33% 29% +61% +26% +43% 768 375 1,313 299 477 H1 FY24 H1 FY25 H1 FY24 H1 FY25 916 LATAM Region RoW 10% 7% 5% 6% +9% +45% 90 98 72 50 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY2
Slide 23: H1 FY25: Region Wise Breakup (Non-Agrochemical Segment)
H1 FY25: REGION WISE BREAKUP (Non - Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 15% 16% 56% 64% -9% -6% -18% 44 40 170 160 303 249 H1 FY24 H1 FY25 H1 FY24 H1 FY25 LATAM Region RoW 6% 8% 23% 12% +2% -58% 19 19 69 29 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24
Slide 24: H1 FY25: Financial Highlights
H1 FY25 : FINANCIAL HIGHLIGHTS Cr. Revenues & GP Margin EBITDA Profit After Tax 28.4% 16.5% 173 +28% 70 1,562 1,219 H1 FY24 H1 FY25 -28 -116 H1 FY24 H1 FY25 H1 FY24 H1 FY25 ✓ Gross Margins have increased to 28.4% and it is expected to further improve in ✓ Revenue in H1 FY25 increased by 28% primaril
Slide 25: Strong Balance Sheet
STRONG BALANCE SHEET Working Capital (in Days) Total Equity 158 days 126 days Rs. 2,294 crores 192 Rs. 2,237 crores as on Mar’24 157 123 102 100 Cash, Bank & Liquid 76 Investments Rs. 656 crores Mar-24 Sep-24 Rs. 375 crores as on Mar’24 Inventory Days Recievable Days Creditor Days On Consolidated Ba
Slide 26: Annexure
Annexure
Slide 27: Q2 & H1 FY25 Financial Highlights
Q2 & H1 FY25 FINANCIAL HIGHLIGHTS Cr. Particulars Q2 FY25 Q2 FY24 Y-o-Y H1 FY25 H1 FY24 Y-o-Y Revenue from Operations 776.9 580.8 34% 1,562.0 1,218.5 28% COGS 562.2 435.2 1,118.4 1,017.3 Gross Profit 214.7 145.5 48% 443.6 201.2 120% Gross Margin % 27.6% 25.1% 28.4% 16.5% Employee Expenses 10.4 9.2 2
Slide 28: Balance Sheet
BALANCE SHEET Cr. EQUITY & LIABILITIES Sep-24 Mar-24 ASSETS Sep-24 Mar-24 Equity Non-current assets Equity share capital 90.2 90.2 Property, plant and equipment 3.4 3.8 Other equity 2,203.5 2,146.9 Right to Use Assets 10.8 14.4 Equity attributable to equity holders of the Company 2,293.8 2,237.1 Goo
Slide 29: Cash Flow Statement
CASH FLOW STATEMENT Cr. Particulars H1 FY25 H1 FY24 Profit Before Tax 76.3 -138.7 Adjustments 100.6 124.9 Operating profit before working capital changes 176.9 -13.7 Changes in working capital 321.6 222.0 Cash generated from operations 498.5 208.2 Direct taxes paid (net of refund) -40.8 -38.5 Net Ca
Slide 30: Key Financial Performance Indices
KEY FINANCIAL PERFORMANCE INDICES Cr. Revenue EBITDA & EBITDA Margin* Profit After Tax & PAT Margin 17.6% 19.0% 20.4% 17.6% 10.1% 8.2% 9.6% 9.8% 8.5% 1.0% 4,045 3,580 3,163 729 349 713 342 2,396 2,003 455 229 352 318 165 32 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 R
Slide 31: Historical Profit & Loss
HISTORICAL PROFIT & LOSS Cr. Particulars FY24 FY23 FY22 FY21 FY20 Revenue from Operations 3,163.0 4,045.2 3,579.8 2,395.6 2,003.0 COGS 2,342.4 2,860.8 2,499.8 1,636.0 1,388.8 Gross Profit 820.6 1,184.4 1,080.0 759.7 614.3 Gross Margin % 25.9% 29.3% 30.2% 31.7% 30.7% Employee Expenses 42.4 44.8 44.2
Slide 32: Balance Sheet – Equity & Liabilities
BALANCE SHEET – EQUITY & LIABILITIES Cr. Equities & Liabilities FY24 FY23 FY22 FY21 FY20 Shareholder's Funds Equity and Share Capital 90.2 90.2 90.2 90.2 90.2 Other Equity 2,146.9 2,141.8 1,822.2 1,524.1 1,312.6 Non-controlling Interest 0.4 0.4 0.3 0.3 0.3 Total Equity 2,237.5 2,232.4 1,912.8 1,614.
Slide 33: Balance Sheet – Assets
BALANCE SHEET – ASSETS Cr. ASSETS FY24 FY23 FY22 FY21 FY20 Assets Non-Current Assets Property, Plant and Equipment 3.8 5.0 14.4 20.9 27.8 Right to Use Assets 14.4 0.0 - - - Goodwill 0.0 0.0 0.0 0.4 0.4 Other Intangible assets 690.0 663.0 577.4 523.1 388.1 Intangible assets under development 282.9 20
Slide 34: CSR Activities
CSR ACTIVITIES CSR initiatives taken up by the Company are in the areas of Promoting Education, Healthcare, Eradicating Hunger, Empowerment of Women, Animal Welfare, Promotion of Sports and Rural Development Projects Promoting Education Animal Welfare Medical Aid & Relief 33
Slide 35: Thank You
SECURING HARVESTS, NURTURING FUTURES. THANK YOU Company: Sharda Cropchem Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L51909MH2004PLC145007 CIN: U74140MH2010PTC204285 Mr. Shailesh Mehendale – CFO Mr. Deven Dhruva cfo@shardaintl.com deven.dhruva@sgapl.net finance@shard