Sharda Cropchem Limited has informed the Exchange about Investor Presentation
24th January, 2025
To,
National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051
BSE Limited Phiroze Jeejeebhoi Tower, Dalal Street, Mumbai – 400 001
Trading Symbol: SHARDACROP
Scrip Code: 538666
Subject: Investors / Analyst’s Presentation for the quarter and nine months ended 31st December, 2024:
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), we are enclosing herewith the presentation to be made to the Investors/Analysts on the Financial Results of the Company for the quarter and nine months ended 31st December, 2024.
The presentation is also being uploaded on the website of the Company www.shardacropchem.com the Listing Regulations.
in accordance with Regulation 46 of
We request you to take the same on record.
Yours Sincerely,
__________________ Jetkin Gudhka Company Secretary & Compliance Officer
Encl.: As above
SECURING HARVESTS, NURTURING FUTURES.
Investor Presentation January 2025
SAFE HARBOR
This presentation has been prepared by and is the sole responsibility of Sharda Cropchem Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions.
This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer or recommendation to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment thereof. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if the information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward looking statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “goal”, “plan”, “potential”, “project”, “pursue”, “shall”, “should”, “will”, “would”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include, among others: (a) our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in regulatory norms applicable to the Company, (d) technological changes, (e) investment income, (f) cash flow projections, and (g) other risks.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes.
2
About Sharda Cropchem Limited
“We are a fast-growing global agrochemicals company with a peer position in the generic crop protection chemicals industry. Our vast and growing library of dossiers and IPRs provide us solid foundations for growth in the global marketplace, especially in Advanced Markets such as Europe, North America and Latin America. It equips us with the ability to operate in a diversified range of formulations and generic active ingredients space globally”
AGROCHEMICAL FOCUSED COMPANY
Sharda Cropchem is an Intellectual Property (IP) driven company engaged in marketing and distribution of wide range of formulations and generic active ingredients
Asset Light Business Model : Efficiently channelizing time and resources for strengthening core competency of identifying generic molecules and registration opportunities which offer scalable growth with limited capital requirements
Large Pipeline of Registrations* : Procured 2,948 registrations. Additionally, it has filed 1,047 applications for registrations globally pending at different stages
Diversified Sourcing Arrangements : Enduring relationship with multiple manufacturers and formulators enables to source and supply formulations or generic active ingredients at competitive prices
Consistently Increasing Global Presence : With diversified range of product portfolio, Company has grown by expanding business operations in 80+ countries, across Europe, NAFTA, Latin America and ROW
Widespread Distribution Network : Presence in the entire agrochemical value chain with 525 third party distributors and 500+ sales force serving the Company’s esteemed clientele in 80+ countries
*As on 31st December 2024
Company’s apt domain knowledge and experience gives substantial competitive advantage for expanding business in existing markets and new geographies
ASSET LIGHT BUSINESS MODEL
Overall Agrochemical Value Chain
Sharda’s Operating Area
√
√
√
√
Basic & Applied Research
Identification
Registration
Active Ingredient Manufacturing
Formulation & Packaging
Marketing & Distribution
Focus on identification of generic molecules, preparing dossiers, seeking registrations, marketing & distributing formulations through third-party distributors and/or own sales force
Manufacturing of AIs and formulations is outsourced
Acts as a key differentiator from an innovator company, allowing the Company to save its capital, time and resources on R&D
Highly flexible operating model resulting in :
• Overall cost competitiveness • Efficient management of fluctuating market demand across various geographies
• Offering wide range of formulations and AIs
6
INCREASING GLOBAL PRESENCE WITH A WIDESPREAD DISTRIBUTION
Presence
80+ countries
across Europe, NAFTA, LATAM & RoW
Global Resource Deployment
500+
Distributors
525+
CAPEX incurred in 9MFY25* Rs. 268 Cr.
* Plus related revenue expenditure on registrations
Over the years, the Company has built a strong brand franchise within our global markets; we are benefiting through the economies of scale in our portfolio and leveraging value of our supply chain to deliver value to our customers across geographies
In addition to newer markets, the wide global presence has allowed us to find new, specialised sales and local marketing talent.
Successfully adopted a factory-to- farmer approach to become a one- stop solution provider to our global customers
Strengthening and widening the sales force in Europe, USA, Canada, Mexico, Colombia, South Africa, India, and rest of the world, in addition to third party distributors with a goal to enhance its presence in the agrochemical value chain
It enables the Company to penetrate its formulations and generic active ingredients in various countries backed by the third-party distributors and presence of its own sales force
Company has gained a great deal from globalization, including new customers and diverse geocentric revenue streams. Over the years, we have mastered flexibility and adopted innovative ways to grow our business overseas
7
The Sharda Advantage
Global Reach
Wide Product Range
Healthy Relationships with Suppliers
Quality with Affordability
Faster Sales Service
One Stop Solution Provider for Crop Care Products
WAY FORWARD
Forward Integration - Build Sales Force
✓ Leverage market presence and execution capabilities
✓ Adopt the factory to farmer approach and be a one stop
solution provider
✓ Strategy on ground in different regions of NAFTA, Europe,
LATAM and other key markets in ROW
1
3
Expand & Strengthen Distribution Presence
✓ Expand geographical reach using existing library of dossiers
✓ Two-fold strategy of further penetrating existing markets and
entering new markets
2
4
Continual Investment in Product Registrations
✓ Continue to identify generic molecules going off patent
✓ Investing in preparing dossiers and seeking registrations in
own name
Focus on Operational Efficiencies
✓ Accelerated focus on revenue generating investments
✓ Margin improvements
✓ Better cost management and eliminate NVAs
9
INDUSTRY OUTLOOK & GROWTH DRIVERS
Global crop protection (In Billion USD) – CAGR of 4.2%
INDUSTRY DRIVERS
+4.2%
134.7
92.2
FY23
FY32e
Source: https://www.imarcgroup.com/crop-protection-chemicals-market
A Growing Population: Global population is set to increase by 1.2 billion by 2030 and 2 billion by 2050, while the middle class will more than double to 4.9 billion by 2030
A growing middle class fuels demand for increased food and protein production, which in turn drives demand for grain to support growth
Fewer arable acres per capita means that products need to continue to maximise farmer yields; arable land is expected to decrease from half an acre per person today to less than one-third of an acre per person by 2050
10
Experienced Management
Mr. Ramprakash V. Bubna Chairman & Managing Director
Mr. Ashish Bubna Whole Time Director
Mr. Manish Bubna Whole Time Director
✓ Holds a Bachelor’s Degree of Technology in Chemical
✓ Holds a Bachelor’s Degree in Commerce from the
Engineering from IIT, Bombay
University of Mumbai
✓ Holds a Bachelor’s Degree in Chemical Engineering from the Department of Chemical Technology, Bombay University
✓ He has over 56 years of experience in chemicals,
✓ Over 33 years of experience in marketing of chemicals,
✓ Over 31 years of experience in chemicals, agrochemicals and
agrochemicals and related businesses
agrochemicals and related businesses.
related businesses
✓ He is responsible for the Company’s overall business
✓ Instrumental in strategizing early investment in product
✓ Spearheaded the Company’s foray into the conveyor belt and
operations and strategy
registrations and building the library of product dossiers
✓ Responsible for marketing, procurement, registrations and logistics functions of the agrochemical business
general chemicals business
✓ Also oversees the information technology, logistics and
documentation functions of the Company
Q3 FY25 Financial Highlights
Q3 FY25: SEGMENT WISE HIGHLIGHTS
Agrochemical Segment
Non-Agrochemical Segment
TOTAL REVENUES
Cr.
80%
83%
20%
17%
% of Revenue
100%
100%
+51%
769
+30%
160
508
124
+47%
929
632
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
On Consolidated Basis
13
Q3 FY25: PRODUCT WISE HIGHLIGHTS (Agrochemical Segment)
Herbicides
Insecticides
Fungicides
Cr.
TOTAL REVENUES (Agrochemical Segment)
55%
61%
23%
19%
22%
20%
% of Revenue
100%
100%
+68%
469
+26%
147
+37%
153
280
117
111
+51%
769
508
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
14
Q3 FY25: REGION WISE BREAKUP (Agrochemical Segment)
Europe
+22%
38%
294
47%
241
NAFTA Region
+95%
47%
359
37%
184
Cr.
TOTAL REVENUES (Agrochemical Segment)
+51%
769
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
508
LATAM Region
6%
33
+65%
7%
54
RoW
+21%
8%
62
10%
50
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
% of Revenue
On Consolidated Basis
15
Q3 FY25: REGION WISE BREAKUP (Non - Agrochemical Segment)
Europe
-29%
20%
24
11%
17
NAFTA Region
60%
75
+52%
70%
113
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
LATAM Region
+138%
11%
17
6%
7
RoW
-26%
14%
18
8%
13
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
Cr.
TOTAL REVENUES (Non - Agrochemical Segment)
+30%
160
124
Q3 FY24
Q3 FY25
% of Revenue
On Consolidated Basis
16
Q3 FY25 : FINANCIAL HIGHLIGHTS
Revenues & GP Margin
26.2%
32.7%
+47%
929
632
EBITDA
+232%
157
Cr.
Profit After Tax
31
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
Q3 FY24
Q3 FY25
47
5
✓ Revenue in Q3 FY25 increased by 47% primarily driven by higher volumes and a gradual price increase. We saw volume growth across all regions, with Europe and NAFTA being key contributors
✓ Agrochemical volumes grew by 49.5% in Q3 FY25
✓ Non-Agrochemical volumes grew by 42.4% in Q3 FY25
✓ Gross Margins have improved by 660 basis points to 32.7%. It is expected to improve further in this financial year with prices expected to increase
✓ EBITDA for the quarter stood at Rs. 157 crores as compared to Rs. 47 crores in Q3 FY24 with EBITDA Margins improving to 16.9% (up by 940 bps on Y-o-Y basis)
✓ PAT for the quarter stood at Rs. 31 crores as compared to Rs. 5 crores in Q3 FY24
On Consolidated Basis
17
9M FY25 Financial Highlights
9M FY25: SEGMENT WISE HIGHLIGHTS
Agrochemical Segment
Non-Agrochemical Segment
TOTAL REVENUES
Cr.
77%
84%
23%
16%
% of Revenue
100%
100%
+46%
2,082
-4%
427
409
1,424
+35%
2,491
1,851
9M FY24
9M FY25
9M FY24
9M FY25
9M FY24
9M FY25
On Consolidated Basis
19
9M FY25: PRODUCT WISE HIGHLIGHTS (Agrochemical Segment)
Herbicides
Insecticides
Fungicides
Cr.
TOTAL REVENUES (Agrochemical Segment)
54%
55%
24%
21%
22%
24%
% of Revenue
100%
100%
+48%
1,146
+26%
438
+63%
498
772
347
305
+46%
2,082
1,424
9M FY24
9M FY25
9M FY24
9M FY25
9M FY24
9M FY25
9M FY24
9M FY25
20
9M FY25: REGION WISE BREAKUP (Agrochemical Segment)
Europe
+48%
51%
1,062
50%
718
NAFTA Region
34%
482
+52%
35%
734
Cr.
TOTAL REVENUES (Agrochemical Segment)
+46%
2,082
9M FY24
9M FY25
9M FY24
9M FY25
1,424
LATAM Region
9%
123
+24%
7%
152
RoW
+33%
6%
134
7%
101
9M FY24
9M FY25
9M FY24
9M FY25
9M FY24
9M FY25
% of Revenue
On Consolidated Basis
21
9M FY25: REGION WISE BREAKUP (Non - Agrochemical Segment)
Europe
-16%
16%
69
14%
58
NAFTA Region
57%
245
+12%
67%
273
9M FY24
9M FY25
9M FY24
9M FY25
LATAM Region
6%
26
+39%
9%
36
RoW
-52%
20%
87
10%
42
9M FY24
9M FY25
9M FY24
9M FY25
Cr.
TOTAL REVENUES (Non - Agrochemical Segment)
-4%
427
409
9M FY24
9M FY25
% of Revenue
On Consolidated Basis
22
9M FY25 : FINANCIAL HIGHLIGHTS
Revenues & GP Margin
EBITDA
Profit After Tax
Cr.
30.0%
+35%
2,491
19.8%
1,851
330
101
9M FY24
9M FY25
19
9M FY24
9M FY25
-112 9M FY24
9M FY25
✓ Revenue in 9M FY25 increased by 35% primarily driven by higher volumes. We saw volume growth across all regions, with Europe and NAFTA being key contributors
✓ Agrochemical volumes grew by 40.8% in 9M FY25
✓ Non-Agrochemical volumes de-grew by 12% in 9M FY25
✓ Gross Margins have improved by 1,020 basis points to 30.0%
✓ EBITDA for the 9M FY25 stood at Rs. 330 crores as compared to Rs. 19 crores in 9M FY24 with EBITDA Margins improving to 13.2% (9M FY24 was 1.0%)
✓ PAT for 9M FY25 stood at Rs. 101 crores as compared to a loss of Rs. 112 crores in 9M FY24
On Consolidated Basis
23
STRONG BALANCE SHEET
Working Capital (in Days)
Total Equity
131 days
158 days
98 days
144
134
121
123
192
157
123
115
91
Dec-23
Mar-24
Dec-24
Inventory Days
Recievable Days
Creditor Days
Rs. 2,316 crores
Rs. 2,237 crores as on Mar’24
Cash, Bank & Liquid Investments
Rs. 742 crores
Rs. 375 crores as on Mar’24
On Consolidated Basis
24
Annexure
Q3 & 9M FY25 FINANCIAL HIGHLIGHTS
Particulars
Revenue from Operations
COGS
Gross Profit
Gross Margin %
Employee Expenses
Other Expenses
EBITDA*
EBITDA Margin %
Forex (Gain)/Loss
Depreciation / Amortization
Other Income
EBIT
EBIT Margin %
Finance Cost
PBT
Tax Expense
PAT
PAT Margin %
Earnings Per Share (EPS) In Rs.
Cr.
Y-o-Y
35%
104%
1,653%
Q3 FY25
Q3 FY24
929.3
625.1
304.2
32.7%
12.3
137.8
156.6
16.9%
39.5
68.9
0.6
46.4
5.0%
0.5
45.9
14.8
31.1
3.4%
3.45
632.5
466.9
165.6
26.2%
9.4
109.6
47.2
7.5%
(22.8)
68.6
12.2
13.0
2.1%
0.9
12.1
7.5
4.6
0.7%
0.51
Y-o-Y
47%
84%
232%
256%
279%
571%
9M FY25
2,491.3
1,743.6
747.8
30.0%
33.8
393.1
329.8
13.2%
28.4
202.8
34.3
123.9
5.0%
1.7
122.2
21.4
100.8
4.0%
11.17
9M FY24
1,851.0
1,484.1
366.8
19.8%
27.7
326.3
18.8
1.0%
(18.6)
212.9
61.8
(119.7)
(6.5%)
6.8
(126.5)
-15.0
(111.6)
(6.0%)
(12.37)
* EBITDA is excluding IA & IAUD write-off (Rs. 2.4 cr. in Q3 FY25; Rs. 0.5 cr. in Q3 FY24; Rs.8.9 cr. in 9M FY25; Rs.6.0 cr. in 9M FY24)
On Consolidated Basis
26
KEY FINANCIAL PERFORMANCE INDICES
Revenue
EBITDA & EBITDA Margin*
Profit After Tax & PAT Margin
Cr.
3,580
4,045
3,163
2,003
2,396
17.6%
19.0%
20.4%
17.6%
10.1%
8.2%
9.6%
9.8%
8.5%
1.0%
729
713
349
342
352
455
318
165
229
32
FY20
FY21
FY22
FY23
FY24
FY20
FY21
FY22
FY23
FY24
FY20
FY21
FY22
FY23
FY24
RoCE
25.7%
RoE
19.8%
20.2%
20.8%
13.9%
15.2%
12.3%
16.5%
Cash, Bank & Liquid Investments^
269
276
262
325
375
FY20
FY21
FY22
FY23
FY24
FY20
FY21
FY22
FY23
* EBITDA is excluding IA & IAUD write-off
3.4%
1.4%
FY24
FY20
FY21
FY22
FY23
FY24
^ Total Cash & Cash Equivalents (Includes FDs of Rs. 128 crores clubbed in Non Current Other Financial Assets)
On Consolidated Basis
27
HISTORICAL PROFIT & LOSS
Particulars
Revenue from Operations
COGS
Gross Profit
Gross Margin %
Employee Expenses
Other Expenses
EBITDA*
EBITDA Margin %
Forex (Gain)/Loss
Depreciation
Other Income
EBIT
EBIT Margin %
Finance Cost
PBT
Tax Expense
PAT
PAT Margin %
Earnings Per Share (EPS) In Rs.
* EBITDA is excluding IA & IAUD write-off
FY24
3,163.0
2,342.4
820.6
25.9%
42.4
494.9
318.1
10.1%
0.4
267.1
59.8
75.5
2.4%
3.6
71.9
40.0
31.9
1.0%
3.53
FY23
4,045.2
2,860.8
1,184.4
29.3%
44.8
438.9
712.6
17.6%
57.6
248.1
40.3
435.3
10.8%
4.5
430.7
88.8
342.0
8.5%
37.90
FY22
3,579.8
2,499.8
1,080.0
30.2%
44.2
336.4
728.6
20.4%
16.5
245.3
28.9
466.5
13.0%
2.2
464.2
115.0
349.3
9.8%
38.71
FY21
2,395.6
1,636.0
759.7
31.7%
37.3
305.5
455.2
19.0%
-19.9
170.4
45.9
312.2
13.0%
2.8
309.5
80.2
229.2
9.6%
25.40
Cr.
FY20
2,003.0
1,388.8
614.3
30.7%
34.9
282.4
351.7
17.6%
15.1
137.1
42.1
186.8
9.3%
1.9
184.9
20.2
164.7
8.2%
18.25
On Consolidated Basis
28
BALANCE SHEET – EQUITY & LIABILITIES
Equities & Liabilities Shareholder's Funds Equity and Share Capital Other Equity Non-controlling Interest Total Equity
Non-Current Liabilities Borrowings Trade Payables Lease Liabilities Other Financial Liabilities Provisions Deferred Tax Liabilities (net) Total Non-Current Liabilities
Current Liabilities Borrowings Lease Liabilities Trade Payables Other Financial Liabilities Other Current Liabilities Current Tax Liabilities Provisions Total Current Liabilities Total Equity & Liabilities
FY24
90.2 2,146.9 0.4 2,237.5
7.8 58.4 1.4 152.8 220.3
3.4 7.2 921.2 502.5 69.0 76.0 1.5 1,580.5 4,038.3
FY23
90.2 2,141.8 0.4 2,232.4
- - - 1.7 2.7 143.4 147.9
3.0 0.0 1,377.6 431.4 78.1 61.4 19.1 1,970.6 4,350.8
FY22
90.2 1,822.2 0.3 1,912.8
- 2.4 3.5 1.6 2.3 128.9 138.6
38.0 5.1 1,177.6 324.8 55.4 4.2 86.7 1,691.8 3,743.1
FY21
90.2 1,524.1 0.3 1,614.6
- 2.4 8.4 3.2 3.0 92.9 109.9
67.8 4.5 806.8 149.1 58.0 3.2 50.0 1,139.4 2,863.9
Cr.
FY20
90.2 1,312.6 0.3 1,403.1
0.1 2.4 - 13.1 2.7 69.3 87.5
0.0 - 686.7 89.7 54.4 1.5 24.4 856.7 2,347.2
On Consolidated Basis
29
BALANCE SHEET – ASSETS
ASSETS Assets Non-Current Assets Property, Plant and Equipment Right to Use Assets Goodwill Other Intangible assets Intangible assets under development Deferred Tax Assets (net) Non-Current Tax Assets Other financial assets Other Non Current Assets Total Non-Current Assets
Current Assets Inventories Investments Trade Receivables Cash & Cash equivalents Other Bank balances Loans Other Financial Assets Other Current Assets Total Current Assets Total Assets
FY24
FY23
3.8 14.4 0.0 690.0 282.9 10.3 72.1 5.3 21.7 1,100.4
991.6 158.9 1,498.0 87.3 0.6 0.0 128.1 73.4 2,937.9 4,038.3
5.0 0.0 0.0 663.0 203.9 7.9 72.3 120.7 19.9 1,092.7
1,134.3 31.9 1,833.3 176.4 0.2 0.0 5.5 76.5 3,258.2 4,350.8
FY22
14.4 - 0.0 577.4 212.2 4.9 71.6 11.2 0.0 891.7
892.8 134.4 1,540.0 56.7 109.3 0.5 48.9 68.9 2,851.5 3,743.1
FY21
20.9 - 0.4 523.1 131.0 6.0 73.6 9.4 0.0 764.5
525.5 83.0 1,162.6 85.6 175.0 - 28.1 39.6 2,099.3 2,863.9
Cr.
FY20
27.8 - 0.4 388.1 161.4 3.9 72.5 11.6 0.0 665.7
382.2 115.5 988.4 77.8 75.7 - 11.3 29.6 1,681.5 2,347.2
On Consolidated Basis
30
CSR ACTIVITIES
CSR initiatives taken up by the Company are in the areas of Promoting Education, Healthcare, Eradicating Hunger, Empowerment of Women, Animal Welfare, Promotion of Sports and Rural Development Projects
Promoting Education
Animal Welfare
Medical Aid & Relief
31
SECURING HARVESTS, NURTURING FUTURES.
THANK YOU
Company: Sharda Cropchem Limited
Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd.
CIN: L51909MH2004PLC145007
CIN: U74140MH2010PTC204285
Mr. Shailesh Mehendale – CFO cfo@shardaintl.com/ finance@shardaintl.com Tel: +91 22 6678 2800
Mr. Deven Dhruva deven.dhruva@sgapl.net Tel: +91 98333 73300