This Agrochemical stock which deals in the business of exporting agrochemicals including technical grade and formulations and non-agro products such as conveyor belts, rubber belts, or sheets was down by 9 percent despite announcing a net profit jump of 570 percent year on year.
Price Movement
In Monday’s trading session, Sharda Cropchem Ltd’s share price touched a day’s low of Rs. 555.65, which was down by 8.7 percent. The share price reiterated from the day’s low and was trading at Rs. 562.65, which is 7.56 percent lower than the previous closing price of Rs. 608.65. In the past year, the stock has delivered around 42 percent and has outperformed the Nifty Index.
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 929.32 crore which increased by 46.93 percent year on year, from Rs. 632.46 crore in Q3FY24 and a 19.62 percent increase from Rs. 776.89 crore in Q2FY25. Their net profit increased by 570.81 percent year on year, from Rs. 4.64 crores in Q3FY24 to Rs. 31.14 crores in Q3FY25. Quarterly, the profits were down by 26 percent from Rs. 42.41 crore.
Revenue Segments
The company’s revenue from operations from Agrochemicals which contributes 82.72 percent and the remaining 17.27 percent from the Non-Agrochemical segment as of Q3FY25. However, Agrochemical with a higher revenue has made a contribution of 16.14 percent for operating profit and the remaining 83.85 percent from Non-Agrochemical business. Despite a lower profit margin, they have turned profitable from a loss in the previous quarter.
Geographical business growth
Sharda Cropchem was able to grow its business year-on-year in the Agrochemical segment in this quarter. From Europe the revenues grew by 22 percent, the NAFTA region grew by 95 percent, LATAM region grew by 65 percent. For the Non-Agrichemical segment, the Europe region fell by 29 percent, NAFTA grew by 52 percent and LATAM grew by 138 percent for Q3FY25.
Capex Plans
The company expects a capex plan of Rs. 400 to Rs. 450 crore for this financial year. The revenue and EBITDA guidance is in the range of 15 percent to 18 percent.
About the company
Sharda Cropchem Limited is a global agrochemicals company that specializes in crop protection chemicals while offering formulations and generic active ingredients across insecticides, fungicides, and herbicides with a strong export presence.
Written by Santhosh S
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