Monday saw a remarkable surge in the shares of the leading agrochemical firm, soaring by 9.5% to hit an intraday peak of ₹394.70 per share. This surge was propelled by the company’s staggering 2760% increase in net profit on a quarter-over-quarter basis.
At 12:45 p.m, Sharda Cropchem Ltd shares were trading at ₹388.40 per share, up 7.84% from the previous close price on the National Stock Exchange and the company has a market capitalization of ₹3,522 crores.
In Q4FY24, Sharda Cropchem Ltd achieved a standalone net profit of ₹143 crores, soaring by 2760% from the ₹5 crores in Q3FY24. Additionally, the company experienced a significant upswing in total revenue from operations for the quarter, reaching ₹1,312 crores, reflecting a remarkable 107% increase compared to the revenue of ₹632 crores in the previous quarter of the year.
In the fiscal year 2023-24, the company faced significant challenges, with its consolidated net profit plummeting by 90% to ₹32 crores from the previous fiscal year’s ₹342 crores (FY22-23). Similarly, total revenue took a hit, dropping by 28% to ₹3,163 crores compared to ₹4,045 crores in FY22-23, according to the company’s filings.
Despite these setbacks, the company maintains a global presence in over 80 countries. In FY24, it invested ₹420 crores in capital expenditures.
In Q4FY24, the company saw declines in both its Agrochemical and Non-Agrochemical segments, with decreases of 8% and 42%, respectively.
However, there were some positive indicators. Overall volumes increased by 24.9% year-on-year in Q4 FY24, with Agrochemicals experiencing a growth of 28.2%, while Non-Agrochemicals declined by 41.9% year-on-year.
The drop in revenues can be attributed to lower product price realizations across all regions. Despite this, there was a silver lining as gross margins improved by 300 basis points to 34.6% in Q4 FY24.
EBITDA for the quarter stood at Rs. 303 crores, a slight decrease from ₹ 312 crores in the previous year, with EBITDA margins increasing to 23.1%.
Over the past six months, Sharda Cropchem Ltd’s shares have experienced a 7% decrease, followed by a 23% decline over the course of the last twelve months.
Sharda Cropchem is principally engaged in the export of agrochemicals (technical grade and formulations) and non-agro products such as conveyor belts, rubber belts/sheets, dyes, and dye intermediates to various countries across the world.
Written by Omkar Chitnis
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