Sharda Cropchem (SHARDACROP) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 revenue grew 23% year-over-year to INR 785 crores (₹78,511 lakhs), driven by strong agrochemical segment performance, especially in Europe, which nearly doubled its contribution.

• Agrochemical volumes rose 48.9% year-over-year, while non-agrochemical volumes declined 39% year-over-year.

• Gross margins normalized to 29.2% in Q1 FY2025, up from 8.7% in Q1 FY24, with EBITDA margin at 11.3% and PAT at INR 27 crores (₹2,725 lakhs), reversing a loss of INR 89 crores last year.

• Unaudited financial results for Q1 FY25 were approved, with both standalone and consolidated statements reviewed and an unmodified opinion from auditors.

Financial highlights

• Revenue: INR 785 crores (₹78,511 lakhs) in Q1 FY2025 vs INR 638 crores in Q1 FY24 (23% growth).

• Agrochemical revenue: INR 679 crores (₹67,926 lakhs, +43% YoY); non-agrochemical revenue: INR 106 crores (₹10,586 lakhs, -35% YoY).

• Gross profit increased 311% to ₹228.9 crore, with gross margin at 29.2%.

• EBITDA: INR 88 crores (11.3% margin) vs loss of INR 66 crores in Q1 FY24.

• PAT: INR 27 crores (₹2,725 lakhs) vs loss of INR 89 crores (₹8,864 lakhs) in Q1 FY24; EPS at ₹3.02.

Outlook and guidance

• Volume growth guidance for FY2025 remains at 15%-18%, with EBITDA margin guidance also at 15%-18%.

• Management expects gradual price improvement in agrochemicals, with prices potentially reaching $30-$40 per unit by year-end.

• Strategic focus on expanding sales force, strengthening distribution, and investing in product registrations to drive growth.

• Normalized sales returns expected, with no abnormal returns seen in Q2 so far.

• Management anticipates sustainable volume growth of 15%-20% as market stabilizes.