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Sharda Cropchem Ltd.

BSE: 538666 Sector: Agri and agri inputs
NSE: SHARDACROP ISIN Code: INE221J01015
BSE 00:00 | 03 Dec 311.80 0.05
(0.02%)
OPEN

312.90

HIGH

316.60

LOW

311.15

NSE 00:00 | 03 Dec 312.55 1.10
(0.35%)
OPEN

314.95

HIGH

318.00

LOW

310.75

OPEN 312.90
PREVIOUS CLOSE 311.75
VOLUME 3845
52-Week high 387.05
52-Week low 230.75
P/E 11.34
Mkt Cap.(Rs cr) 2,813
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 312.90
CLOSE 311.75
VOLUME 3845
52-Week high 387.05
52-Week low 230.75
P/E 11.34
Mkt Cap.(Rs cr) 2,813
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sharda Cropchem Ltd. (SHARDACROP) - Chairman Speech

Company chairman speech

Dear Shareholders

Fiscal FY21 will be remembered as the year of COVID-19. For Sharda Cropchem it was atale of resilience in terms of our team's hard work and determination in facing thechallenges; which were met to deliver the performance. We closed FY21 with revenues growthby 19.6% YOY backed by strong demand for our various products across the globe. Ourability to rapidly respond to the challenges demonstrates the unique value we bring to ourglobal clients and the resilience of our business across geographies. We are proud thatduring fiscal FY21 "Team Sharda Cropchem" continued to deliver on ourcommitments . And at one of the most challenging times in world history we have emergedstronger. We enter fiscal FY22 with the same disciplined commitment and passion to performand are ready to navigate through new challenges.

Our financial performance underscoring our resilience

We delivered strong performance in fiscal FY21 reflecting continued growth ahead ofthe market strong profitability and record free cash flow driving superior shareholdervalue.

During the fiscal year of FY21 our revenues grew by 19.6% YoY from Rs 2003 crores inFY20 to Rs 2396 crores in FY21. This was the result of our strong overall volume growthof 21.5%. Regionally speaking we saw solid performance from Europe which grew by 20.2%from the NAFTA region which grew by 23.6% and from the LATAM region which grew by 30.6%.In contrast we saw a modest decline in RoW regions by 3.7%. Exchange gain was favourableduring the year by 6.1% which was negated by product mix and price impact to the extent of8%.

Our Agrochemicals to Non-Agrochemicals mix stood at 86:14. The Agrochemicals businessgrew by 22.2%. Europe grew by 20.0% NAFTA grew by 26.0% LATAM grew by 24.6% and RoW grewby 17.1%. The Formulation to AI mix stood at 93:7 in FY21. The Non-Agrochemicals businessgrew by 6.0%. Europe grew by 22.4% NAFTA grew by 12.7% and LATAM grew by 87.1%. On theother hand RoW degrew by 33.4%.

In terms of contributions our Gross profit grew by 23.6% YoY from Rs 614 crores inFY20 to Rs 760 crores in FY21. Our Gross margin expanded by 104 bps from 30.7% in FY20 to31.7% in FY21 due to a favourable product mix. Our EBIDTA too grew by 29.8% YoY from Rs351 crores in FY20 to Rs 455 crores in FY21. The EBIDTA margin expanded by 150 bps to19.0% in FY21 predominantly led by favourable product mix and various cost efficiencies.In terms of our net contribution our Profit after Tax grew by 39.2% YoY from Rs 165crores in FY20 to Rs 229 crores in FY21. I am pleased to inform you that our PAT marginexpanded by 135bps YoY to 9.6% in FY21. Our Cash Profit stood at Rs 400 Crores in FY21 ascompared to Rs 302 Crores in FY20 and our Net working capital days stood at 86 days inFY21 as against 74 days in FY20.

During the year Board of Directors have declared interim dividend of Rs 2 per equityshare and recommended final dividend of Rs 3 per equity share subject to approval ofshareholders. The aggregate amount of dividend including final dividend is Rs 4511.02lakhs subject to TDS as applicable.

Resilience from having a rich portfolio

At Sharda we use market driven systematic approach in creating product variants in thepursuit of growth and delivering added value to our esteemed customers. We continue tobuild on our core capability to pick out interesting and hard-to-enter molecules to make ageneric entry into advanced and regulated markets with critical entry barriers.

Despite the COVID 19 disruption your Company has not let up in its investmentcommitments for their product registrations and we have continued to strengthen ourproduct portfolio by prudently investing in new registrations. We almost doubled our capexin FY21 to Rs 309 Crores vis--vis Rs 162 Crores in FY20. As of March 312021 thecompany has obtained 2543 product registrations.

Our vast and growing library of dossiers and IPRs provide us foundations for growth inthe global marketplace especially in Advanced Markets such as Europe and North America.It equips us with the ability to operate in a diversified range of formulations andgeneric active ingredients space globally.

Your Company continues to embark on its Product Portfolio expansion journey with afirm registration pipeline and as at March 31 2021 we have 1128 new applications atdifferent stages made globally.

A stakeholder to mission-critical global food security

We continue to pursue our strategy of further penetrating of existing markets andentering new markets. As a global player taking part in markets across all continentsyour Company continues to expand and strengthen its relationships with its customers &business partners. Today we are a fast-growing global agrochemicals company with a peerposition in the generic crop protection chemicals industry. Making deeper inroads into theevolving global markets has enabled us to improve our relevance competitiveness andcreate value in an unstoppable world.

We are blessed by the fact that we belong to one of the world's most essential industrywhich is indirectly contributing towards the essential food security for the world'spopulation. This fact also provides us another form of resilience from being part of theevergreen agriculture industry which must play the lead role in increasing the world'sfood production by around 70% to support the population by 2050.

Given these fundamentals we stand on firm ground to keep growing to support foodsecurity for the world.

Rising stronger from the crisis

Our culture is differentiated by shared success based on our commitment to make apositive difference together with our clients our people our shareholders our partnersand our communities. Our formula for market influence is enduring as we continuallyimprove our business and embrace change to create more value for our customers. We viewfiscal FY22 as turning a page - we are no longer navigating a crisis - we are facing a newreality and we are ready.

Throughout our history the people of Sharda Cropchem have embraced change. Today is nodifferent. I want to thank all our people for their dedication perseverance andcommitment. I also want to thank all our shareholders for their continued trust andsupport . We expect your similar support in future as well which helps us perform better.

Stay safe stay healthy.

Sincerely

R. V. BUBNA

Chairman & Managing Director

.