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#Dhanukaagritech Q3 22 Concall Highlights 🧪🧪

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Operational Highlights

1. Revenues from Operations stood at ₹356.86 Crores in Q3 FY2021-22 vs ₹295.66 Crores in Q3 FY2020-21.

2. EBITDA stood at ₹61.74 Cr with EBITDA margins at 17%

3. 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

1. Steep increase in prices for few molecules were more than 100% and the incremental pass on are happening deferred basis

2. The company has signed MoU with 2 agricultural universities to jointly conduct research in crop protection chemicals

3. Focus on expanding portfolio and reaching out on digital platforms
EBITDA expectation in the range on 18% in FY22

4. “Markar” product sales doubled in the year compared to previous year

CIBRC registration approvals for new products:

1. 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.

Dhanuka will market this product under the brand name “janet” used mainly in horticulture crops

2. 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

3. Etofenprox + Diafenthturon,This product is developed in collaboration with M/s. Mitsut Chemicals Ltd, Japan.

Dhanuka 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

1. Dahej phase 1 formulation project on track and confident on previous guidance of completion in the March 2022

2. 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