Q2 2025 Dhanuka Agritech Ltd Earnings Call Transcript
Key Points
- Dhanuka Agritech Ltd (BOM:507717) reported a 6% growth in revenues from operations for Q2 FY25 compared to the same period last year.
- The company achieved a 13% growth in EBITDA for the quarter, indicating improved operational efficiency.
- New product launches, such as Lani and Micro Super, have been well-received in the market, contributing positively to sales.
- Dhanuka Agritech Ltd has a strong R&D division and international collaborations, which help in introducing the latest agrochemical technologies in India.
- The company has a robust distribution network with a pan-India presence, reaching over 10 million farmers, which supports its market penetration and sales growth.
- Sales returns increased significantly in Q2 due to less consumption of insecticides caused by continuous rainfall, impacting revenue.
- There was a 5% price reduction impact on revenue compared to Q2 of the previous year, indicating pricing pressures in the market.
- The company's B2B segment reported a negative EBITDA contribution, highlighting challenges in achieving profitability in this area.
- Inventory levels were higher due to continuous rain and sales returns, which could affect cash flow and working capital management.
- The company revised its revenue growth guidance for the full year from 18% to 16%, reflecting a more cautious outlook.
Ladies and gentlemen, good day, and welcome to Dhanuka Agritech Q2 FY25 conference call hosted by Antique Stock Broking. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Manish Mahawar from Antique Stock Broking. Thank you, and over to you, sir.
Am I audible?
Yes, sir.
Yes. Thank you. On behalf of Antique Stock Broking, a warm welcome to all our participants on the 2Q FY25 earnings call of Dhanuka Agritech. Today, we have Mr. MK Dhanuka, Chairman; Mr. Rahul Dhanuka, Managing Director; Mr. Harsh Dhanuka, Executive Director; and Mr. VK Bansal, CFO, on the call. Without further a do, I would like to hand over the call to Mr. MK Dhanuka for opening remarks. Post which, we will open the close for Q&A.
Thank you and over to Mr. Dhanuka.
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