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Dhanuka Agritech Ltd (BOM:507717) Q3 FY25 Earnings Call Highlights: Strong Revenue and Profit ...

In This Article:

  • Revenue: INR 445.27 crores in Q3 FY25, up 10.4% from INR 403.24 crores in Q3 FY24.

  • EBITDA: INR 75.56 crores in Q3 FY25, up 21.55% from INR 62.16 crores in Q3 FY24.

  • Profit After Tax: INR 55.04 crores in Q3 FY25, up 21.33% from INR 45.37 crores in Q3 FY24.

  • Zone-wise Turnover Share: North India 22.63%, East India 11.8%, West India 27.57%, South India 38.62%.

  • Product Category Turnover Share: Insecticide 29.99%, Fungicide 19.96%, Herbicide 34.71%, Other 15.34%.

Release Date: February 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Dhanuka Agritech Ltd (BOM:507717) reported a 10.4% increase in revenue for Q3 FY25 compared to the previous year, reaching INR445.27 crores.

  • EBITDA for Q3 FY25 increased by 21.55% to INR75.56 crores, indicating improved operational efficiency.

  • Profit after tax rose by 21.33% to INR55.04 crores, showcasing strong bottom-line growth.

  • The company successfully launched new products, LaNevo and MYCORe Super, which were well-received by farmers.

  • Dhanuka Agritech Ltd acquired international rights to active ingredients from Bayer AG, expanding its global footprint and product portfolio.

Negative Points

  • Sales of key fungicides were lower due to reduced disease appearance in crops like potato, grapes, and chilli.

  • The company faced challenges with carryover inventory from the previous season, affecting commodity prices and sales space.

  • The Dahej manufacturing facility reported an EBITDA loss of INR4.25 crore in Q3, indicating underutilization.

  • Global registration processes for new products are time-consuming, posing a challenge for international expansion.

  • The company anticipates difficulty in maintaining the current high gross margins in FY26 due to market conditions.

Q & A Highlights

Q: Can you explain the strategy behind not acquiring the brand name for triadimenol despite its significant market share? A: Rahul Dhanuka, Joint Managing Director: The brand names associated with triadimenol were part of a series of products with Bayer's branding, which could not be transferred to Dhanuka. Hence, we did not acquire those brand names.

Q: What challenges do you foresee in expanding your business model internationally, and how do you plan to overcome them? A: Rahul Dhanuka, Joint Managing Director: The main challenge is the time-consuming global registration process. We are building a specialist team for international business and plan to expand our product basket through organic or inorganic means.