Sharda Cropchem (SHARDACROP) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 revenue grew 23% year-over-year to INR 785 crores (₹785.1 crore), driven by strong agrochemical segment performance, especially in Europe, which nearly doubled its contribution.

• Agrochemical segment contributed 87% of total revenue, growing 43% year-over-year, while non-agrochemical segment declined by 35%.

• Gross margins normalized to 29.2% in Q1 FY2025, up from 8.7% in Q1 FY24, with expectations for further improvement.

• EBITDA for the quarter was INR 88 crores (11.3% margin), compared to a loss of INR 66 crores in Q1 FY24; PAT was INR 27 crores versus 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 from operations rose to ₹785.1 crore in Q1 FY25 from ₹637.8 crore in Q1 FY24, a 23% increase.

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

• EBITDA margin improved to 11.3% from -10.4% in Q1 FY24.

• PAT margin at 3.5%, with EPS at ₹3.02.

• Overall volumes grew 41.2% year-over-year in Q1 FY25.

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.

• Focus on operational efficiencies, margin improvements, and cost management.

• Continued investment in product registrations and expansion into new markets.

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