Sharda Cropchem

Sharda Cropchem is a crop protection chemical company largely operating across Europe, NAFTA and Latin America across fungicides, herbicides and insecticides. It operates with an asset light business model focused on identification and registration of potential molecules. As of 31st March 2017, Sharda owns 2,174 registrations and filed 845 applications for registrations globally pending at different stages. The company also runs a non-agrochemical business comprising of order-based procurement and supply of non-agrochemical products including conveyor belts and general chemicals, dyes and dyes intermediates.

The company for Q4FY17 posted a 14% (YoY) increase in total revenues at Rs.595 crore, primarily driven by volume growth of 19.5%, and adverse currency movement of 4%. In terms of region-wise growth, Europe rose 4.5%, NAFTA rose by 96% on the back of increase in new registration, Latin America by 21% and RoW rose 25%, mainly on account of growth in Morocco.

EBITDA for the quarter was up 3% at Rs.157 crore and margins actually slipped from 29.1% to 26.4%. The company ended the quarter with a net profit at Rs.99 crore, down 2% and PAT margins also showed a sharp slip to 16.6% from 19.2%. It was the non-agrochemicals unit which did not do too well, with revenue down 15% but its contribution to total income is less than 9%.

Promoters at end of FY17 held 74.78% stake, DIIs hold a large 13.92% and FIIs hold 5.88%; leaving a very low floating stock of 5.42%. Market cap stands at over Rs.4500 crore.