-
Revenue: INR 276.07 crores, a year-to-year growth of 7% compared to H1 FY '24.
-
Gross Profit Margin: Maintained at 51%.
-
EBIT: INR 42.18 crores for the first half.
-
Profit After Tax: INR 36.78 crores.
-
Cotton Segment Growth: 11% increase in value.
-
Cotton and Paddy Segment Growth: 8.1% year-to-year growth.
-
Paddy Volume: Dropped by 4.5%, but value increased by 5.48%.
-
Maize Growth: Year-to-year value growth of 35.18%.
-
Bajra Growth: Value growth of 7.6%.
-
Field Crops Volume Growth: 2.3% increase.
-
Field Crops Value Growth: 9.62% increase.
-
NCP Portfolio Growth: Expanded by 7.3% in value.
-
Vegetable Segment Growth: 12.3% increase in value.
-
Debt Position: Zero debt.
-
Operating Cash Flows: Remain positive.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Nath Bio-Genes (India) Ltd (BOM:537291) reported a 7% year-over-year growth in top-line revenue for the first half of FY '25, reaching INR 276.07 crores.
-
The company maintained a strong gross profit margin of 51%, indicating effective cost management and pricing strategies.
-
Cotton and paddy segments showed significant growth, with cotton value increasing by 11% and paddy value by 5.48%, despite a drop in paddy volume.
-
The company's credit rating was upgraded from BBB to BBB+, reflecting improved operational stability and financial health.
-
Nath Bio-Genes is expanding its international presence, with successful advancements in its joint venture in Uzbekistan and trial marketing preparations in the Philippines.
Negative Points
-
The paddy segment experienced a 4.5% drop in volume, which could indicate challenges in market demand or production issues.
-
Despite overall growth, the company faces fluctuations in product volumes, which may impact future revenue stability.
-
The company has a high inventory level of INR 160 crores at the end of Q2, which could tie up working capital and affect liquidity.
-
The joint venture in Uzbekistan is still in its early stages, with no immediate revenue contribution, impacting consolidated profits.
-
The company has not yet achieved significant sales in the Philippines, indicating potential delays in international market expansion.
Q & A Highlights
Q: How has the recent increase in minimum support price for Rabi crops influenced the overall strategy and sales outlook? A: Harish Pandey, Vice President of Sales and Marketing, explained that the increase in MSP is beneficial as it encourages farmers to purchase better seeds, which in turn can lead to better pricing at the time of sale. This is expected to positively impact seed sales.