Q4 2024 Sumitomo Chemical India Ltd Earnings Call Transcript
Key Points
- Sumitomo Chemical India Ltd (BOM:542920) recorded a 3% year-over-year increase in Q4 FY23/24 revenue, reaching INR674 crore.
- Gross margin improved significantly to 41.7% in Q4 FY23/24, up by 1,042 basis points compared to the same period last year.
- EBITDA saw a substantial increase of 74% year-over-year in Q4 FY23/24, reaching INR140 crore.
- The company successfully liquidated high-cost inventory and improved procurement efficiencies, contributing to better financial performance.
- Sumitomo Chemical India Ltd (BOM:542920) maintained strong cash and cash equivalents of INR1,207 crore as of March 31, 2024, after paying an interim dividend.
- Revenue from operations for FY23/24 decreased by 19% year-over-year, from INR3,511 crore to INR2,844 crore.
- The export revenue proportion dropped from 25% in FY22/23 to 20% in FY23/24 due to pricing pressures and elevated inventory levels.
- EBITDA margin for FY23/24 decreased to 16.7% from 19% in the previous year.
- Profit after tax for FY23/24 declined to INR370 crore from INR502 crore in FY22/23, reflecting challenging market conditions.
- The company faced significant challenges in the agrochemical sector, including adverse weather conditions, poor demand, and supply chain disruptions.
Ladies and gentlemen, good day, and welcome to Sumitomo Chemical India Limited Q4 and FY24 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
From the management today, we have on the call Mr. Chetan Shah, Managing Director; Mr. Masanori Uzawa, Non-Executive Director; Mr. Sushil Marfatia, Executive Director; Dr. Suresh Ramachandran, Whole-Time Director and Chief Commercial Officer; Mr. Kunal Mittal, Senior VP, Planning and Coordination Office; Mr. Anil Nawal, Chief Financial Officer; Mrs. Deepika Trivedi, Company Secretary and Compliance Officer; and colleagues from SGA, their Investor Relations advisers. Now I hand over the conference to Mr. Chetan Shah, Managing Director of Sumitomo Chemical India Limited. Thank you, and over to you, Mr. Shah.
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