Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q1 FY2024 Earnings Presentation
27 slides from Sharda Cropchem's earnings presentation, Jul 24, 2023
Slide 1: Cover letter to stock exchanges
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Slide 2: Investor Presentation July 2023
Investor Presentation July 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 √ √ √ √ 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 80+ countries benefiting through the economies of scale in 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. R M Ramprakash k h V. V Bubna B b Mr. Ashish Bubna Mr. Manish B Mr Bubna bna Chairman & Managing Director Whole Time Director Whole Time Director • Holds a Bachelor’s Degree of • Holds a Bachelor’s Degree in • Holds a Bachelor’s Degree in Chemical Technology in Chemical En
Slide 13: Q1 FY24 Financial Highlights
Q1 FY24 Financial Highlights
Slide 14: Q1 FY24: Segment Wise Highlights
Q1 FY24: Segment Wise Highlights Cr. Agrochemical Segment Non Agrochemical Segment TOTAL REVENUES 75% 75% 25% 25% % of Revenue 100% 100% 615 210 825 475 162 638 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 - 23% - 23% - 23% On Consolidated Basis 13
Slide 15: Q1 FY24: Product Wise Highlights (Agrochemical Segment)
Q1 FY24: Product Wise Highlights (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 57% 53% 17% 21% 26% 26% % of Revenue 100% 100% 352 105 157 615 99 124 475 252 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 - 28% - 6% - 21% - 23% On Consoli
Slide 16: Q1 FY24: Region Wise Breakup (Agrochemical Segment)
Q1 FY24: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 51% 52% 31% 35% -21% -14% 615 312 192 246 166 475 Q1FY23 Q1FY24 Q1FY23 Q1FY24 LATAM Region RoW 13% 8% 4% 5% Q1FY23 Q1FY24 -51% -16% 83 28 23 40 - 23% Q1FY23 Q1FY24 Q1FY23 Q1FY24 % of Rev
Slide 17: Q1 FY24: Region Wise Breakup (Non Agrochemical Segment)
Q1 FY24: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 28% 13% 54% 52% -64% -26% 210 59 114 84 22 162 Q1FY23 Q1FY24 Q1FY23 Q1FY24 LATAM Region RoW 6% 7% 11% 28% Q1FY23 Q1FY24 +96% -16% 13 45 11 23 - 23% Q1FY23 Q1FY24 Q1FY23 Q1FY24
Slide 18: Q1 FY24: Financial Highlights
Q1 FY24: Financial Highlights Cr. Revenues & GP Margin EBITDA Profit After Tax 25.4% 8.7% 99 23 825 638 Q1FY23 Q1FY24 -66 -89 Q1FY23 Q1FY24 Q1FY23 Q1FY24 • Revenues has de-grown due to lower sales in Europe and • Gross Margins reduced to 8.7% in Q1FY24 NAFTA Region • Raw Material and Finished goods
Slide 19: Strong Balance Sheet
Strong Balance Sheet Working Capital (in Days) RoCE RoE 25.7% 19.8% 91 days 120 days 20.8% 16.5% 120 109 Mar-22 Mar-23 Mar-22 Mar-23 86 85 85 68 Cash & Cash Total Equity Total Debt Equivalents Jun-22 Jun-23 Rs. 2,232 Rs. 3 crores Rs. 328 crores crores* Inventory Days Recievable Days Creditor Days Rs
Slide 20: Annexure
Annexure
Slide 21: Q1FY24 Financial Highlights
Q1FY24 Financial Highlights Cr. Particulars Q1 FY24 Q1 FY23 Revenue from Operations 637.8 824.5 COGS 582.0 615.1 Gross Profit 55.7 209.4 Gross Margin % 8.7% 25.4% Employee Expenses 9.2 8.5 Other Expenses 115.3 104.8 EBITDA* -66.0 99.0 EBITDA Margin % -10.4% 12.0% Forex (Gain)/Loss -9.5 43.2 Deprecia
Slide 22: 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 23: 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 24: 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 25: 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 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
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: