Dhanuka Agritech (507717) Q1 24/25 earnings summary

Executive summary

• Leadership transition with Mr. R.G. Agarwal stepping down as Chairman, succeeded by Mr. M.K. Dhanuka, and Mr. Rahul Dhanuka elevated to Managing Director; Mr. Agarwal continues as Chairman Emeritus.

• Revenue from operations grew 33.74% year-over-year to INR 493.58 crores in Q1 FY25, driven by strong demand and new product launches.

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

• Board approved a buyback of up to 500,000 equity shares at INR 2,000 per share, totaling up to INR 100 crores.

• Major board restructuring and succession planning completed, with additional management changes and the only subsidiary struck off in July 2024.

Financial highlights

• Q1 FY25 revenue from operations at INR 493.58 crores, up 33.74% year-over-year.

• EBITDA at INR 71.72 crores, up 64.46% year-over-year.

• Profit after tax at INR 48.9 crores, up 48.45% year-over-year.

• Basic and diluted EPS for the quarter were INR 10.73, compared to INR 7.23 in Q1 FY24.

• Gross profit margin improved to 34.66% from 32.82% year-over-year.

Outlook and guidance

• FY25 revenue growth guidance upgraded to 18%-20%.

• Double-digit revenue growth (over 20%) expected for FY2024-25.

• EBITDA margin guidance at approximately 18% for the full year.

• Q2 expected to see lower double-digit growth due to sales returns and herbicide demand normalization.

• Full-year EBITDA and gross margin expected to decline by around 100 basis points due to normalization from last year’s exceptional margins and negative EBITDA from Dahej plant.