Sharda Cropchem (SHARDACROP) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 and 9M FY25 saw strong revenue and profit growth, driven by higher volumes, improved pricing, and margin expansion, especially in Europe and NAFTA regions.

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

• Interim dividend of INR 3 per equity share declared for FY25, with payment scheduled by February 23, 2025.

• Significant investments in product registrations and distribution expansion underpin growth strategy.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY25 were approved and published, with auditors providing an unmodified review opinion.

Financial highlights

• Q3 FY25 revenue rose 47% YoY to INR 929 crores; 9M FY25 revenue reached INR 2,491 crores, both with significant gross margin improvement to 32.7% and 30% respectively.

• Q3 FY25 EBITDA grew 232% YoY to INR 157 crores (margin 16.9%); PAT was INR 31 crores, up from INR 4.6 crores YoY.

• 9M FY25 EBITDA was INR 330 crores (margin 13.2%); PAT was INR 101 crores, reversing a loss of INR 112 crores YoY.

• EPS for Q3 FY25 was INR 3.45; for 9M FY25, INR 11.17.

• Working capital days improved to 98 days, down 60 days from March 2024; cash and liquid investments at INR 742 crores.

Outlook and guidance

• Capex for FY25 expected at INR 400-450 crores; 9M FY25 Capex at INR 268 crores, mainly for product registrations.

• Management expects Q4 and FY26 to maintain high growth momentum, with EBITDA margin guidance of 15%-18% for FY25.

• Revenue for FY25 projected to reach around INR 4,000 crores, with Q4 expected to outperform last year.

• Focus on forward integration by building sales force and expanding distribution in key markets.

• Agrochemicals segment is seasonal, with performance influenced by cropping patterns and global weather conditions.