Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q1 FY25 Earnings Presentation
27 slides from Sharda Cropchem's earnings presentation, Jul 23, 2024
Slide 1: Cover letter to stock exchanges
23rd July, 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 / An
Slide 2: Securing Harvests, Nurturing Futures. Investor Presentation July 2024
SECURING HARVESTS, NURTURING FUTURES. Investor Presentation July 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: Management statement on global agrochemicals position
“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 CAPEX incurred in Presence Global Resource Distributors Q1FY25* 80+ countries Deployment 525+ Rs. 78 Cr. across Europe, NAFTA, LATAM & RoW 500+ * Plus related revenue expenditure on registrations Over the years, the Company has built a strong
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: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights
Slide 14: Q1 FY25: Segment Wise Highlights
Q1 FY25: SEGMENT WISE HIGHLIGHTS Cr. Agrochemical Segment Non-Agrochemical Segment TOTAL REVENUES 75% 87% 25% 13% % of Revenue 100% 100% +43% +23% -35% 679 162 785 638 475 106 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 On Consolidated Basis 13
Slide 15: Q1 FY25: Product Wise Highlights (Agrochemical Segment)
Q1 FY25: PRODUCT WISE HIGHLIGHTS (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 53% 47% 21% 23% 26% 30% % of Revenue 100% 100% +26% +67% +43% 318 +56% 207 679 154 252 475 124 99 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 14
Slide 16: Q1 FY25: Region Wise Breakup (Agrochemical Segment)
Q1 FY25: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 52% 53% 35% 37% +48% +50% +43% 364 249 679 246 166 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 475 LATAM Region RoW 8% 6% 5% 4% 0% +12% 40 40 23 26 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 %
Slide 17: Q1 FY25: Region Wise Breakup (Non-Agrochemical Segment)
Q1 FY25: Region Wise Breakup (Non - Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 13% 16% 52% 64% -24% -19% -35% 22 84 162 16 68 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 106 LATAM Region RoW 7% 11% 28% 9% +6% -79% 11 12 45 9 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24
Slide 18: Q1 FY25: Financial Highlights
Q1 FY25 : FINANCIAL HIGHLIGHTS Cr. Revenues & GP Margin EBITDA Profit After Tax 29.2% 8.7% 88 27 +23% 785 638 Q1 FY24 Q1 FY25 -66 -89 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 ✓ Gross Margins at 29.2% have come back to normalcy and we expect this to ✓ Overall Volumes have increased by 41.2% Y-o-Y in Q1 improv
Slide 19: Strong Balance Sheet
STRONG BALANCE SHEET Working Capital (in Days) Total Equity 158 days 137 days Rs. 2,271 crores 192 Rs. 2,237 crores as on Mar’24 157 132 123 103 98 Cash, Bank & Liquid Investments Rs. 624 crores Mar-24 Jun-24 Rs. 375 crores as on Mar’24 Inventory Days Recievable Days Creditor Days On Consolidated Ba
Slide 20: Annexure
Annexure
Slide 21: Q1 FY25 Financial Highlights
Q1 FY25 FINANCIAL HIGHLIGHTS Cr. Particulars Q1 FY25 Q1 FY24 Y-o-Y Revenue from Operations 785.1 637.8 23% COGS 556.2 582.0 Gross Profit 228.9 55.7 311% Gross Margin % 29.2% 8.7% Employee Expenses 11.2 9.2 Other Expenses 132.4 115.3 EBITDA* 88.3 -66.0 - EBITDA Margin % 11.3% -10.4% Forex (Gain)/Loss
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 25
Slide 27: 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 Mr. Dinesh Nahar – General Manager - Finance deven.dhru