Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q3 FY24 Earnings Presentation
33 slides from Sharda Cropchem's earnings presentation, Jan 24, 2024
Slide 1: Letter to stock exchanges on investor presentation
24th January, 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: Investor Presentation January 2024
Investor Presentation January 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sharda Cropchem Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: About Sharda Cropchem Limited
About Sharda Cropchem Limited
Slide 5: Global agrochemicals company with peer position in generics
“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 Intellectual Property (IP) driven company engaged in marketing and distribution of wide range formulations and generic active ingredients Efficiently channelizing time and resources for strengthening core Asset Light Business Model competency of identifying generic molec
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 Manufacturing Research Packaging Distribution SHARDA CROPCHEM’s ASSET LIGHT BUSINESS MODEL Focus on identification of ge
Slide 8: Increasing Global Presence having a Widespread Distribution
Increasing Global Presence having a Widespread Distribution Over the years, we’ve built a strong brand Presence franchise within our global markets; we are benefiting through the economies of scale in 80+ countries our portfolio and leveraging value of our across Europe, NAFTA, supply chain to deliv
Slide 9: The Sharda Advantage
The Sharda Advantage THE SHARDA ADVANTAGE One Stop Healthy Solution Wide Product Quality with Faster Sales Global Reach relationships Provider for Range Affordability Service with suppliers Crop Care Products 8
Slide 10: Way Forward
Way Forward Forward Integration - Build Sales Force Expand & Strengthen Distribution Presence ➢ Leverage market presence and execution capabilities ➢ Expand geographical reach using existing library of dossiers ➢ Adopt the factory to farmer approach and be a one stop solution provider ➢ Two-fold str
Slide 11: Industry Outlook and Growth Drivers
Industry Outlook and Growth Drivers Global crop protection chemicals market value (In Billion USD) – CAGR of 3.5% 59.7 62.8 77.0 53.0 42.0 43.7 8.1 8.4 10.2 7.7 5.3 3.9 5.9 4.3 5.4 0.5 0.6 0.8 2020 2025e 2030e Herbicide Fungicide Insecticide Nematicide Molluscicide INDUSTRY DRIVERS 1 2 3 Fewer arabl
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 • Holds a Bachelor’s Degree in Commerce from • Holds a Bachelor’s Degree in Chemical Technology in Chemical Engineering
Slide 13: Q3 FY24 Financial Highlights
Q3 FY24 Financial Highlights
Slide 14: Q3 FY24: Segment Wise Highlights
Q3 FY24: Segment Wise Highlights Cr. Agrochemical Segment Non-Agrochemical Segment TOTAL REVENUES 83% 80% 17% 20% % of Revenue 100% 100% 842 175 1,017 124 508 632 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 -40% -29% -38% On Consolidated Basis 13
Slide 15: Q3 FY24: Product Wise Highlights (Agrochemical Segment)
Q3 FY24: Product Wise Highlights (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 59% 55% 11% 23% 30% 22% % of Revenue 100% 100% 495 118 250 842 97 280 508 110 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 -43% +21% -56% -40% On Consolidat
Slide 16: Q3 FY24: Region Wise Breakup (Agrochemical Segment)
Q3 FY24: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 38% 45% 47% 36% -27% -54% 842 316 396 231 184 508 Q3FY23 Q3FY24 Q3FY23 Q3FY24 LATAM Region RoW 6% 7% 9% 12% Q3FY23 Q3FY24 -33% -26% 50 80 34 59 -40% Q3FY23 Q3FY24 Q3FY23 Q3FY24 % of Reve
Slide 17: Q3 FY24: Region Wise Breakup (Non Agrochemical Segment)
Q3 FY24: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 14% 20% 66% 60% -5% -36% 175 26 24 115 75 124 Q3FY23 Q3FY24 Q3FY23 Q3FY24 LATAM Region RoW 5% 6% 15% 14% Q3FY23 Q3FY24 -17% -30% 8 26 7 18 -29% Q3FY23 Q3FY24 Q3FY23 Q3FY24 % of
Slide 18: Q3 FY24: Financial Highlights
Q3 FY24: Financial Highlights Cr. Revenues & GP Margin EBITDA Profit After Tax 30.5% 26.2% Increased other expenses 197 are related to strengthening of global workforce to 108 support future growth 1,017 632 47 5 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 • Overall Volumes have reduced by 20.8% Y-o-Y
Slide 19: 9M FY24 Financial Highlights
9M FY24 Financial Highlights
Slide 20: 9M FY24 Segment Wise Highlights
9M FY24 Segment Wise Highlights Cr. Agrochemical Segment Non Agrochemical Segment TOTAL REVENUES 79% 77% 21% 23% % of Revenue 100% 100% 2,032 531 2,563 427 1,424 1,851 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 -30% -20% -28% On Consolidated Basis 19
Slide 21: 9M FY24: Product Wise Highlights (Agrochemical Segment)
9M FY24: Product Wise Highlights (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 58% 54% 16% 24% 26% 22% % of Revenue 100% 100% 1,168 347 536 2,032 328 772 1,424 305 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 -34% +6% -43% -30% On Cons
Slide 22: 9M FY24: Region Wise Breakup (Agrochemical Segment)
9M FY24: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 42% 48% 40% 34% -21% -41% 2,032 857 818 678 484 1,424 9MFY23 9MFY24 9MFY23 9MFY24 LATAM Region RoW 10% 9% 8% 9% 9MFY23 9MFY24 -32% -20% 197 161 129 135 -30% 9MFY23 9MFY24 9MFY23 9MFY24 %
Slide 23: 9M FY24: Region Wise Breakup (Non Agrochemical Segment)
9M FY24: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 22% 16% 59% 58% -41% -22% 531 117 313 245 69 427 9MFY23 9MFY24 9MFY23 9MFY24 LATAM Region RoW 6% 6% 13% 20% 9MFY23 9MFY24 -17% +24% 31 87 26 70 -20% 9MFY23 9MFY24 9MFY23 9MFY24
Slide 24: 9M FY24: Financial Highlights
9M FY24: Financial Highlights Cr. Revenues & GP Margin EBITDA Profit After Tax 28.0% 19.8% Increased other expenses 401 are related to strengthening of global workforce to 143 2,563 support future growth 1,851 19 9MFY23 9MFY24 9MFY23 9MFY24 -112 9MFY23 9MFY24 • Overall Volumes have reduced by 6.6% Y
Slide 25: Strong Balance Sheet
Strong Balance Sheet Working Capital (in Days) RoCE RoE 25.7% 19.8% 87 days 131 days 20.8% 16.5% 144 134 119 121 Mar-22 Mar-23 Mar-22 Mar-23 103 103 Cash & Cash Total Debt Total Equity Equivalents Dec-22 Dec-23 Rs. 2,097 Rs. 370 Rs. 2 crores crores crores Inventory Days Recievable Days Creditor Days
Slide 26: Annexure
Annexure
Slide 27: Q3 & 9M FY24 Financial Highlights
Q3 & 9M FY24 Financial Highlights Cr. Particulars Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y Revenue from Operations 632.5 1,017.3 -38% 1,851.0 2,563.3 -28% COGS 466.9 707.3 1,484.1 1,846.9 Gross Profit 165.6 310.0 -47% 366.8 716.5 -49% Gross Margin % 26.2% 30.5% 19.8% 28.0% Employee Expenses 9.4 1
Slide 28: Key Financial Performance Indices
Key Financial Performance Indices Cr. Revenue EBITDA & EBITDA Margin* Profit After Tax & PAT Margin 20.7% 18.5% 17.6% 19.0% 17.6% 11.2% 8.8% 8.2% 9.8% 8.5% 4,045 3,580 729 713 349 342 2,396 1,998 2,003 455 229 369 352 176 165 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Slide 29: Historical Profit & Loss
Historical Profit & Loss Cr. Particulars FY23 FY22 FY21 FY20 FY19 Revenue from Operations 4,045.2 3,579.8 2,395.6 2,003.0 1,997.6 COGS 2,860.8 2,499.8 1,636.0 1,388.8 1,387.3 Gross Profit 1,184.4 1,080.0 759.7 614.3 610.2 Gross Margin % 29.3% 30.2% 31.7% 30.7% 30.5% Employee Expenses 44.8 44.2 37.3
Slide 30: Balance Sheet – Equity & Liabilities
Balance Sheet – Equity & Liabilities Cr. Equities & Liabilities FY23 FY22 FY21 FY20 FY19 Shareholder's Funds Equity and Share Capital 90.2 90.2 90.2 90.2 90.2 Other Equity 2141.8 1,822.2 1,524.1 1,312.6 1,193.7 Non-controlling Interest 0.4 0.3 0.3 0.3 0.2 Total Equity 2,232.4 1,912.8 1,614.6 1,403.1
Slide 31: Balance Sheet - Assets
Balance Sheet - Assets Cr. ASSETS FY23 FY22 FY21 FY20 FY19 Assets Non-Current Assets Property, Plant and Equipment 5.0 14.4 20.9 27.8 13.5 Goodwill 0.0 0.0 0.4 0.4 0.4 Other Intangible assets 663.0 577.4 523.1 388.1 357.8 Intangible assets under development 203.9 212.2 131.0 161.4 219.8 Deferred Tax
Slide 32: 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 31
Slide 33: THANK YOU
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.dhruva@sgapl.net cfo@shardaintl.com / fina