Sharda Cropchem (SHARDACROP) Q2 24/25 earnings summary

Executive summary

• Q2 FY2025 revenue grew 34% year-on-year to INR 777 crores, driven by strong agrochemical segment performance, especially in Europe and NAFTA, with significant volume increases and margin recovery.

• H1 FY2025 revenue increased 28% year-on-year to INR 1,562 crores, with agrochemical volumes up 36% and non-agrochemical segment declining 31%.

• PAT turned positive at INR 42 crores in Q2 FY2025 from a loss of INR 28 crores in Q2 FY2024; H1 PAT at INR 70 crores versus a loss of INR 116 crores last year.

• The company operates an asset-light, IP-driven model, focusing on global marketing and distribution of generic crop protection chemicals in 80+ countries.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, with an unmodified review report.

Financial highlights

• Q2 FY2025 revenue was INR 777 crores; H1 FY2025 revenue at INR 1,562 crores.

• Q2 FY2025 EBITDA increased 125% to INR 85 crores (margin 10.9%); H1 FY2025 EBITDA at INR 173 crores.

• Gross margin improved to 27.6% in Q2 and 28.4% in H1 FY2025.

• Working capital days improved by 32 days to 126 days as of September 30, 2024.

• Net debt-free with INR 656 crores in cash and liquid investments as of September 30, 2024.

Outlook and guidance

• Revenue and EBITDA growth for FY2025 guided at 15%-18%, with volume growth expected in the same range.

• Management expects further gross margin improvement in FY2025, supported by price increases and operational efficiencies.

• Management expects second half to outperform the first half due to seasonality and cropping patterns.

• Guidance is considered conservative; actual performance may exceed the stated range.