Thread by @TYMFinance

Sharda Cropchem conducted the conference today for Q3.

Here are the conference call highlights
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Business Updates:

• Business growth was all over the sector. Below is the region wise growth of the company.
• Product registration stood 2365 at Dec. 1,099 globally are at different stage of approval.
• Freight cost improved significantly this quarter.
• Cash Profit: 161cr

Industry Updates:

• Mgmt expect industry outlook to be positive with increase in demand of agro products.
• Mgmt expect industry growth to be sustainable.
• Mgmt expect RM cost to be declining & easiness in availability of RM, with expectation of worst is over.

Volume & Margins:

Volume:
- Europe: 43.5 Lac KG (36%)
- NAFTA: 32 LAc KG (37%)
- LM: 7.7 LAc KG (14%)
- ROW: 10Lac KG (23%)

Overall Volume Growth: 53%

Gross Margins:
- Europe: 36%
- NAFTA: 37%
- LM: 14%
- ROW: 23%
Overall: 34%

Agrochemical:
(Segmental results shown in the image)

• Inventory has remain a key concern, however this problem is getting solved out.
• Market share is not more than 10% in every region, which signifies the huge market available for Sharda

CAPEX / New Products:

• Product Registration & cost for registration difference changes from region to region.
• Europe is costly for product registration, while time frame has been highest for 8-9 years.
• Focus now remains to enlarge the product portfolio in existing region

Customers:

• Most of the product are sold to distributors / wholesalers. Feedback is taken from farmers in terms of understanding the product viability.
• For agrochemical, co.has seen very limited product related complain over the period of time.

Other:

• Working Capital Days stood at 72 days.
• Price rise taken in Q3 is 25%.
• Mgmt is looking for capital allocation to award the shareholder as well.
• Price of product is is kept by Sharda at +-10% of market leader.
• Most of cash from sales is received on time.