Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q2 FY24 Earnings Presentation
35 slides from Sharda Cropchem's earnings presentation, Oct 21, 2023
Slide 1: Stock exchange submission letter for investor presentation
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Slide 2: Investor Presentation October 2023
Investor Presentation October 2023
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: 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 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 ξ ξ ξ ξ 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: 80+ countries: Increasing Global Presence
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 ¾ Leverage market presence and execution capabilities ¾ Expand geographical reach using existing library of dossiers ¾ Adopt the factory to farmer approach and be a one stop solution provider ¾ 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 M R k h V. V Bubna B b Mr. Ashish M A hi h Bubna B b Mr. Manish Bubna Mr 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 Tech
Slide 13: Q2 FY24 Financial Highlights
Q2 FY24 Financial Highlights
Slide 14: Q2 FY24: Segment Wise Highlights
Q2 FY24: Segment Wise Highlights Cr. Agrochemical Segment Non-Agrochemical Segment TOTAL REVENUES 80% 76% 20% 24% % of Revenue 100% 100% 576 146 140 722 441 581 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 -23% -4% -20% On Consolidated Basis 13
Slide 15: Q2 FY24: Product Wise Highlights (Agrochemical Segment)
Q2 FY24: Product Wise Highlights (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 56% 55% 22% 29% 22% 16% % of Revenue 100% 100% 322 125 130 129 576 242 441 69 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 -25% +4% -47% -23% On Consolidate
Slide 16: Q2 FY24: Region Wise Breakup (Agrochemical Segment)
Q2 FY24: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 41% 53% 40% 30% -3% -42% 576 239 231 230 133 441 Q2FY23 Q2FY24 Q2FY23 Q2FY24 LATAM Region RoW 11% 11% 8% 6% Q2FY23 Q2FY24 -21% -40% 63 44 50 27 -23% Q2FY23 Q2FY24 Q2FY23 Q2FY24 % of Reve
Slide 17: Q2 FY24: Region Wise Breakup (Non Agrochemical Segment)
Q2 FY24: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 22% 16% 57% 61% +3% -29% 146 32 86 140 83 23 Q2FY23 Q2FY24 Q2FY23 Q2FY24 LATAM Region RoW 7% 6% 14% 17% Q2FY23 Q2FY24 +13% -20% 10 23 8 21 -4% Q2FY23 Q2FY24 Q2FY23 Q2FY24 % of
Slide 18: Q2 FY24: Financial Highlights
Q2 FY24: Financial Highlights Cr. Revenues & GP Margin EBITDA Profit After Tax 27.3% 25.1% Increased other expenses 105 are related to strengthening of global workforce to 12 support future growth 722 581 38 Q2FY23 Q2FY24 Q2FY23 Q2FY24 -28 Q2FY23 Q2FY24 • Gross Margins reduced to 25.1% in Q2 FY24 •
Slide 19: H1 FY24 Financial Highlights
H1 FY24 Financial Highlights
Slide 20: H1 FY24 Segment Wise Highlights
H1 FY24 Segment Wise Highlights Cr. Agrochemical Segment Non Agrochemical Segment TOTAL REVENUES 77% 75% 23% 25% % of Revenue 100% 100% 1,190 356 1,546 303 916 1,219 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 -23% -15% -21% On Consolidated Basis 19
Slide 21: H1 FY24: Product Wise Highlights (Agrochemical Segment)
H1 FY24: Product Wise Highlights (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 57% 54% 19% 25% 24% 21% % of Revenue 100% 100% 674 230 229 286 1,190 494 916 193 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 -27% -1% -33% -23% On Consolid
Slide 22: H1 FY24: Region Wise Breakup (Agrochemical Segment)
H1 FY24: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 46% 52% 35% 33% -13% -29% 1,190 551 422 477 299 916 H1FY23 H1FY24 H1FY23 H1FY24 LATAM Region RoW 12% 10% 6% 5% H1FY23 H1FY24 -38% -31% 146 71 90 50 -23% H1FY23 H1FY24 H1FY23 H1FY24 % of
Slide 23: H1 FY24: Region Wise Breakup (Non Agrochemical Segment)
H1 FY24: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 26% 15% 56% 56% -51% -14% 356 91 198 171 303 44 H1FY23 H1FY24 H1FY23 H1FY24 LATAM Region RoW 6% 6% 12% 23% H1FY23 H1FY24 -18% +56% 23 69 19 44 -15% H1FY23 H1FY24 H1FY23 H1FY24
Slide 24: H1 FY24: Financial Highlights
H1 FY24: Financial Highlights Cr. Revenues & GP Margin EBITDA Profit After Tax 26.3% 16.5% Increased other expenses 204 are related to strengthening of global workforce to 35 1,546 1 546 support future growth 1,219 H1FY23 H1FY24 -28 -116 H1FY23 H1FY24 H1FY23 H1FY24 • Gross Margins reduced to 16.5% i
Slide 25: Strong Balance Sheet
Strong Balance Sheet Working Capital (in Days) RoCE RoE 25.7% 19.8% 91 days 120 days 20.8% 16.5% 97 93 86 74 Mar-22 Mar-23 Mar-22 Mar-23 70 70 Cash & Cash Total Debt Total Equity Equivalents Sep-22 Sep-23 Rs. 2,089 Rs. 311 Rs. 2 crores crores crores* Inventory Days Recievable Days Creditor Days Rs.
Slide 26: Annexure
Annexure
Slide 27: Q2 & H1 FY24 Financial Highlights
Q2 & H1 FY24 Financial Highlights Cr. Particulars Q2 FY24 Q2 FY23 Y-o-Y H1 FY24 H1 FY23 Y-o-Y Revenue from Operations 580.8 721.5 -20% 1,218.5 1,546.0 -21% COGS 435.2 524.4 1,017.3 1,139.5 Gross Profit 145.6 197.1 -26% 201.2 406.5 -50% Gross Margin % 25.1% 27.3% 16.5% 26.3% Employee Expenses 9.2 8.6
Slide 28: Balance Sheet
Balance Sheet Cr. EQUITY & LIABILITIES Sep-23 Mar-23 ASSETS Sep-23 Mar-23 Equity Non-current assets Equity share capital 90.2 90.2 Other equity 1,998.4 2,141.8 Property, plant and equipment 22.0 5.0 Equity attributable to equity holders of the Company 2,088.6 2,232.0 Goodwill 0.0 0.0 Non-controlling
Slide 29: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Cr.) H1 FY24 H1 FY23 Profit Before Tax -138.7 32.2 Adjustments 124.9 135.9 Operating profit before working capital changes -13.7 168.1 Changes in working capital 222.0 18.1 Cash generated from operations 208.2 186.2 Direct taxes paid (net of refund) -38.5 -14.9 N
Slide 30: 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 31: 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 32: 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 33: 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 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
THANK YOU Company: y Sharda Cropchem p Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L51909MH2004PLC145007 CIN: U74140MH2010PTC204285 Mr. Dinesh Nahar – General Manager - Finance Mr. Deven Dhruva finance@shardaintl.com deven.dhruva@sgapl.net Tel: +91 22 6678 2800 Tel: