Dhanuka Agritech (507717) Q1 24/25 earnings summary

Executive summary

• Revenue from operations grew 33.74% year-over-year to ₹493.58 crore in Q1 FY25, driven by strong demand, new product launches, and robust performance across all segments.

• EBITDA increased 64.46% year-over-year to ₹71.72 crore, and PAT rose 48.45% to ₹48.9 crore, reflecting improved profitability.

• Leadership transition completed: Mr. R.G. Agarwal stepped down as Chairman, succeeded by Mr. M.K. Dhanuka, with Mr. Rahul Dhanuka as Managing Director; Mr. Agarwal continues as Chairman Emeritus.

• New product launches (Purge, Lanevo, Mycore Super) exceeded expectations, with further launches planned in the next quarter.

• Board approved a buyback of up to 500,000 shares at ₹2,000 per share, totaling up to ₹100 crore.

Financial highlights

• Q1 FY25 revenue from operations at ₹493.58 crore, up 33.74% year-over-year; EBITDA at ₹71.72 crore, up 64.46%; PAT at ₹48.9 crore, up 48.45%.

• Gross profit margin improved to 34.66% from 32.82% year-over-year; EBITDA margin rose to 14.53% from 11.82%.

• Basic EPS grew 48.4% year-over-year to ₹10.73.

• Interim and final dividends totaling ₹14 per share, absorbing ₹63.81 crore.

• Buyback offer size is less than 10% of paid-up equity capital and free reserves as of March 31, 2024.

Outlook and guidance

• FY25 revenue growth guidance upgraded to 18%-20%, with double-digit growth expected for the year.

• EBITDA margin guidance at approximately 18% for the full year; Q2 expected to see low double-digit growth.

• Margins expected to normalize, with EBITDA and gross margin to decline by around 100 basis points year-over-year.

• New product launches planned: Miyako in Q2, Dinkar (9(3)) and another 9(4) product in Q3.

• Above-average rainfall forecast for the remainder of the Kharif and Rabi seasons is expected to support demand.