Dhanuka AgriTech Q3 2022 Concall Highlights

Operational Highlights

  • Revenues from Operations stood at ₹356.86 Crores in Q3 FY2021-22 vs ₹295.66 Crores in Q3 FY2020-21. 
  • EBITDA stood at ₹61.74 Cr with EBITDA margins at 17%
  • Q3FY22 revenue split – Specialty Contributed 60% & Generic contributed 40%

Products contribution to revenues

  • Insecticides 32%
  •  Fungicides 19%
  • Herbicides 36%
  • Others 13%

Geography wise revenues contribution

  • North 21%
  • South 37%
  • East 11%
  • West 31%
  • Growth is driven by new products and largely driven by herbicides.Volume growth were 18% during the quarter (1.8% for 9MFY22) partly along with price hikes
  • Steep increase in prices for few molecules were more than 100%  and the incremental pass on are happening deferred basis
  • The company has signed MoU with 2 agricultural universities to jointly conduct research in crop protection chemicals
  • Focus on expanding portfolio and reaching out on digital platforms 
  • EBITDA expectation in the range on 18% in FY22
  • “Markar” product  sales doubled in the year compared to previous year

CIBRC registration approvals for new products:

  • Thiophanate Methyl + Kasugamycin, This product is developed jointly in partnership with M/s. Nippon Soda Co Ltd, Japan and M/s.Hokko Chemicals Co. Ltd., Japan.Dhamuka will market this product under the brand name “janet” used mainly in horticulture crops
  • Halosulfuron Methyl + Atrazine,This product is developed in collaboration with M/s. Nissan Chemicals Corporation, Japan. Dhanuka will market this molecule under brand name “cornax” herbicide product
  • Etofenprox + Diafenthturon,This product is developed in collaboration with M/s. Mitsut Chemicals Ltd, Japan. Dhamuka will market this product under the brand name “Decide” used mainly in cotton and chilli crops
  • All these products are expected to be launched in Q1FY23 
  • Small farmers uses the generic products whereas progressive farmers use specialty products

Capex

  • Dahej phase 1 formulation project on track and confident on previous guidance of completion in the March 2022
  • Phase 2 will be more into technical intermediates and  expected to be completed by the end of 2023 and revenues will start reflecting in 2024

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