Dharmaj Crop Guard Ltd (NSE: DHARMAJ) Q4 2025 Earnings Call dated Jun. 03, 2025
Corporate Participants:
Sayam Pokharna — Call Moderator
Rameshbhai Ravajibhai Talavia — Chairman and Managing Director
Vikas Mohanlal Agarwal — Chief Financial Officer
Jamankumar Hansarajbhai Talavia — Whole Time Director
Analysts:
Ankit Minocha — Analyst
Rajat Setiya — Analyst
Sanjay — Analyst
Pavan Kumar — Analyst
Smit Shah — Analyst
Kartik — Analyst
Gaurav Sud — Analyst
Meghna Agarwal — Analyst
Madhur Rathi — Analyst
Shreyas Sette — Analyst
Vaibhav — Analyst
Maitri Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Dharmaj Crop Guard Limited Q4 and FY ’25 Earnings Conference Call hosted by TIL Advisors. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone. Thank you. I now hand the conference over to Mr Sayam from TIL Advisors. Thank you, and over to you, sir.
Sayam Pokharna — Call Moderator
Thank you. Thank you, Steel. Welcome, everyone. Good afternoon, and thank you for taking out the time to join us in this earnings conference call of Crop Guard Limited. The investor updates have already been uploaded on the stock exchange and on the company website.
To take us through today’s results, we have with us from the management team, Mr Ramesh, Chairman and Managing Director; Mr Janan; Jaman Talavia, Whole-Time Director; Mr Vishal Domadia, Chief Executive Officer; and Mr Vikas Agarwal, Chief Financial Officer. We will start with a brief opening remark on the business performance from Ramesh sir, followed by opening remarks on the financial performance by Mr Vikas Agarwal and then open the floor for Q&A session.
I would like to remind you all that anything and everything that is said on this call that represents any outlook for the future, which can be construed as a forward-looking statement must be viewed in conjunction with the risks and uncertainties that we face. These risks and uncertainties have been mentioned in our annual reports.
With that said, I would now like to hand over the call to Ramesh, sir. Over to you.
Rameshbhai Ravajibhai Talavia — Chairman and Managing Director
Good afternoon, everyone, and thank you for joining us today. The past year has continued to be challenging for the Indian agrochemical industry, adding to the sluggish environment of ’23, ’24 marked by challenging environment, pricing pressure and disruption in key export markets. Despite this headwind, has continued to demonstrate notable drop-in its scale of operation, be it in existing formulation business or the emerging active ingredient business. Our revenue from operation for quarter-four stood at INR210 crores, a significant increase of 81% over the previous year.
This growth was possible due to the formulation business both branded and institutional and encouraging progress of our new growth engine that is active in. The Ravi season unfolded as per our expectation, driving strong growth in second-half of FY ’25 and allowing us to partially offset the impact of irregular monsoon during the tariff season, particularly in August and September ’24. As a result, we successfully delivered our top-line target for FY ’25 of INR951 crores, registering a healthy 45% growth year-on-year. So it is important to recognize that this top-line performance was delivered despite a lower pricing environment and ongoing industry challenges.
Our volume growth has been to the turn of 25% to 30% across the majority products. Even though value growth doesn’t fully capture this on account of lower realization. We also faced in export business particularly in the early part of year due to the social and political disruption in-markets like Bangladesh. However, our strong revenue growth has not translated into higher profitability. Lower product price and front-loaded expense-related to our Saika facility have compressed our margin, especially in this new active ingredient segment, while Saika has ramped-up well in its first full financial year of operation, which operated below financial even due to this industry-wide price pressure.
Nevertheless, we have met our production in-production and capacity utilization target. And we are confident that the groundwork led this year will yield stronger results as we move forward. Looking ahead, we are optimistic about the future. The ongoing season has begun positively supported by favorable monsoon forecast from the Indianological department, which project stand 106% of long period average. This bonds well for agriculate agriculture economy and by extension our business, we are eyeing healthy growth in the ongoing curric season.
Our focus remains clear, we will continue to scale our formulation business and accelerate the ramp-up of active ingredient business. Aiming for improved profitability as the industry environment improves, we are also excited our new product launches and our recent geographical expansion, which position us well for continued momentum in FY ’26 and beyond. Additionally, the export market recover and the new product come through. We anticipate growth to come back-in export and thus diversify our revenue stream.
I also want to highlight — highlight that during this entire downtown, has been consistently winning more market-share in the industry. We have been consistently outgoing the industry by healthy performance, thus securing a stronger position within the industry, which will help us leverage our position as the industry environment becomes more confusing.
So with some highlights on financial, I would like to invite our CFO, Mr Vikas Agarwal to do the retail. Thank you.
Vikas Mohanlal Agarwal — Chief Financial Officer
Thank you, sir. Good afternoon, everyone. While most key points have already been addressed by sir, I would like to highlight a few additional aspects for everyone benefit. On the working capital front, we have observed an increase in trade receivables. This is primarily due to higher sales growth reported in Q4 and to some extent in Q3.
A significant portion of our trade receivables, around 75% is attributable to sales made from Q4 onward, resulting in a relatively low-return aging profile. Similarly, there has been a notable rise in trade paybers, which relate to procurement activities in the latter part of the year, again a direct contribution of the increased volume during H2 FY ’25. As a result, net-to-net our cash conversion cycle has improved, decreasing from 84 days last year to 67 days this year. This improvement has also contributed to stronger cash-flow operation from in FY ’25. It is important to clarify that part of the increase of inventory is linked to the active business, which by nature involves longer manufacturing cycle. The remaining inventory is in preparation of for the upcoming season.
At Saika, we have achieved a comfortable ramp-up in operation. In its first full-year, revenue from operations for Active Indian reached to INR217 crore with domestic sale accounting to INR200 crores. We anticipate future growth in export sales in the coming year as forex revenue from in-progress. With INR217 crores in sales, contributed to some EBITDA loss, while the PBT loss was even higher on account of higher depreciation and interest.
On the leverage front, we continue to maintain a motor debt-equity ratio of 0.29, a slight improvement from last year of 0.31. Borrowings related to the new plant have reduced to INR75 crores from INR86 crores with the remainder consisting of short-term working capital limits. Our debt servicing ratio remained robust and we continue to maintain healthy liquidity supported by unutilized working capital limits.
With that sir, we would like to open the floor for Q&A for question-answers.
Questions and Answers:
Operator
Thank you very much, sir. We will begin the question-and-answer session. We would like to request all participants that we would prefer if the questions are asked in the anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. All participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ankit from Ventures. Please go-ahead.
Ankit Minocha
Yeah, hi, good morning. Am I audible? Good morning. Yeah., FY ’26 outlook, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
The top-line growth [Foreign Speech]
Ankit Minocha
Also EBITDA margin outlook?
Rameshbhai Ravajibhai Talavia
EBITDA margin improve on that 1%.
Ankit Minocha
Year-on-year, what was last year, say 1% last quarter say 1%.
Vikas Mohanlal Agarwal
Sir, it will be 1% from formulasm. Overall, it should be improved, it should be around 95 — around 9.5% for overall.
Ankit Minocha
Thank you. Thank you. Secondly, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Ankit Minocha
Competition
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Ankit Minocha
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Jamankumar Hansarajbhai Talavia
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Rameshbhai Ravajibhai Talavia
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Ankit Minocha
Thank you. And secondly,[Foreign Speech]
Rameshbhai Ravajibhai Talavia
No, EBITDA [Foreign Speech]
Operator
To interrupt. The line for the management has been disconnected. Please wait while we reconnect them ladies and gentlemen, the line for the management has been reconnected. Yes, sir, please go-ahead.
Rameshbhai Ravajibhai Talavia
Hello.
Ankit Minocha
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Ankit Minocha
Sir, [Foreign Speech]
Jamankumar Hansarajbhai Talavia
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Ankit Minocha
[Foreign Speech]
Vikas Mohanlal Agarwal
Our EBITDA margin is around 11%.
Ankit Minocha
Okay. Thank you very much. Thank you.
Rameshbhai Ravajibhai Talavia
Yeah. Thank you.
Operator
Thank you. Our next question is from the line of Rajat Setia from PMS. Please go-ahead.
Rajat Setiya
Thanks for the opportunity. Sir, [Foreign Speech]
Vikas Mohanlal Agarwal
[Foreign Speech]
Rajat Setiya
[Foreign Speech]
Vikas Mohanlal Agarwal
[Foreign Speech]
Rajat Setiya
Okay. Okay. [Foreign Speech]
Vikas Mohanlal Agarwal
[Foreign Speech]
Rajat Setiya
Okay. Okay. [Foreign Speech]
Rameshbhai Ravajibhai Talavia
Yeah, [Foreign Speech]
Rajat Setiya
Okay. So sir, methane and our main product, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
Major products are. [Foreign Speech]
Rajat Setiya
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
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Rajat Setiya
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Rameshbhai Ravajibhai Talavia
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Rajat Setiya
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Rameshbhai Ravajibhai Talavia
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Rajat Setiya
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Rajat Setiya
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Rameshbhai Ravajibhai Talavia
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Rajat Setiya
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Rameshbhai Ravajibhai Talavia
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Rajat Setiya
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Rameshbhai Ravajibhai Talavia
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Rajat Setiya
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Rameshbhai Ravajibhai Talavia
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Rajat Setiya
Okay.
Rameshbhai Ravajibhai Talavia
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Rajat Setiya
Okay. Okay.
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Rajat Setiya
Sure, sir. Thank you so much. Back into all the to say Q&A. Thank you.
Operator
Thank you. The next question is from the line of Sanjay from Research. Please go-ahead.
Sanjay
Hi, sir. Thank you for the opportunity and congratulations on a very good set of numbers, sir. Sir, I [Foreign Speech] 35% 40% growth [Foreign Speech] growth lower the guidance [Foreign Speech] conservative side, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
So some conservative number will be, sir. [Foreign Speech]
Sanjay
Okay, just sir. Thank you so much. And sir, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Sanjay
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
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Sanjay
Okay.
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Sanjay
Correct.
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Sanjay
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Sanjay
Okay, sir. Thank you so much,. Thank you so much. Thank you.
Rameshbhai Ravajibhai Talavia
Thank you.
Operator
Thank you. The next question is from the line of Kumar from Ratnataria Capital. Please go-ahead.
Pavan Kumar
So sir, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
Yes. 100%.
Pavan Kumar
Okay. Sir, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Pavan Kumar
Okay, [Foreign Speech] Okay. [Foreign Speech]
Rameshbhai Ravajibhai Talavia
INR200 crores [Foreign Speech]
Pavan Kumar
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
All right.
Pavan Kumar
Okay. Okay, okay. Okay. [Foreign Speech] revenues are up [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Pavan Kumar
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Pavan Kumar
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
Major capex [Foreign Speech] existing formulation [Foreign Speech]
Pavan Kumar
Thank you, thank you.
Rameshbhai Ravajibhai Talavia
Okay, sir. Thank you.
Operator
The next question is from the line of Smith Shah from JHP Securities. Please go-ahead.
Smit Shah
Yeah, hi, sir. [Foreign Speech] 20% growth guidance [Foreign Speech] for FY ’26. [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Smit Shah
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
Non possible [Foreign Speech] 250 crore to INR260 crores [Foreign Speech]
Smit Shah
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
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Smit Shah
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
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Smit Shah
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech] EBITDA margin [Foreign Speech] 16% around.
Smit Shah
Okay. [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Smit Shah
Okay. That INR2.5 crores, sir
Rameshbhai Ravajibhai Talavia
Yeah, right.
Smit Shah
Okay, okay., it’s my sir. Thank you so much.
Rameshbhai Ravajibhai Talavia
Okay. Great.
Smit Shah
Thank you. The next question is from the line of from Samatra. Please go-ahead.
Kartik
Sir [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Kartik
[Foreign Speech] Okay. Thank you, sir. [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Kartik
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Vikas Mohanlal Agarwal
So interest-rate is 9% and because it is in terms we can take it 4% to 5% interest cost.
Kartik
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Kartik
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Jamankumar Hansarajbhai Talavia
[Foreign Speech] FY ’24 [Foreign Speech]
Kartik
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
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Kartik
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Rameshbhai Ravajibhai Talavia
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Kartik
Correct.
Rameshbhai Ravajibhai Talavia
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Kartik
[Foreign Speech] clarification.
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Kartik
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
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Kartik
Thank you. Thank you, sir. And all the best for your future. Thank you, sir.
Rameshbhai Ravajibhai Talavia
Thank you. Thank you, sir.
Operator
Thank you. Thank you. The next question is from the line of Gaurav Su from Capital. Please go-ahead.
Gaurav Sud
Hello.
Rameshbhai Ravajibhai Talavia
Hello
Gaurav Sud
Sir [Foreign Speech] congratulations, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
Gross margin, sir, on an average [Foreign Speech]
Gaurav Sud
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Gaurav Sud
So sir, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Gaurav Sud
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Gaurav Sud
Okay. [Foreign Speech] PBT level pay INR25 crores [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Gaurav Sud
[Foreign Speech]
Vikas Mohanlal Agarwal
[Foreign Speech] So EBITDA level, we definitely we are going to break. So-far as PBT level, it depends actually how the pricing will go actually.
Gaurav Sud
Okay. o sir the current monsoon [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Gaurav Sud
[Foreign Speech] Okay. Sir, final question is [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Gaurav Sud
[Foreign Speech]
Jamankumar Hansarajbhai Talavia
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Gaurav Sud
Okay. [Foreign Speech] final question [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Gaurav Sud
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
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Gaurav Sud
So thank you,
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Gaurav Sud
[Foreign Speech] Thank you again with my questions. Thank you.
Operator
Thank you. The next question is from the line of Megna Agarwal from Mount Intra. Please go-ahead
Meghna Agarwal
Hello I just wanted to know some real aspect that you are expecting. I think I can answer, but I want know if what are you expecting it to continue or to talk now to continue in the future and how does it look like and your city
Rameshbhai Ravajibhai Talavia
Hello.
Meghna Agarwal
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Meghna Agarwal
I’m audible. And I was asking to whatever [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Operator
Can you please use your handset?
Rameshbhai Ravajibhai Talavia
You can’t get you hello,
Meghna Agarwal
Hello, is it better now?
Rameshbhai Ravajibhai Talavia
Yeah,
Meghna Agarwal
Hello. Yeah. I was asking about the rainfall outlook that you’re expecting in a broader has the monsoon started coming in or expecting it to stop and then to come later [Foreign Speech]
Jamankumar Hansarajbhai Talavia
[Foreign Speech] 106% [Foreign Speech]
Meghna Agarwal
Okay, thank you. Thank you so much thank you.
Operator
Thank you. The next question is from the line of Madhuj Rathi from CounterCyclical Investments. Please go-ahead.
Madhur Rathi
Thank you for the opportunity [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Madhur Rathi
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech] Hello,
Madhur Rathi
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Madhur Rathi
[Foreign Speech] formulation, the 16% EBITDA margin [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Madhur Rathi
Okay, sir. Okay. [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Madhur Rathi
[Foreign Speech] But
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Madhur Rathi
Sir, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Meghna Agarwal
Okay, sir. And sir, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Madhur Rathi
Thank you very much on behalf of the sir. Thank you so much and all the best.
Rameshbhai Ravajibhai Talavia
Yeah, right. Thank you.
Operator
The next question is from the line of Sette, an Individual Investor. Please go-ahead.
Shreyas Sette
Hello, sir.
Rameshbhai Ravajibhai Talavia
Hello.
Shreyas Sette
From a promoter’s perspective, [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Shreyas Sette
[Foreign Speech] thank you. Wish you all the best.
Rameshbhai Ravajibhai Talavia
Thank you.
Operator
The next question is from the line of from Eye. Please go-ahead
Vaibhav
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
Technical plant
Vaibhav
Yes
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Vaibhav
Pat margin guidance
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Vaibhav
Okay. Okay, take it. Thank you.
Rameshbhai Ravajibhai Talavia
Okay.
Operator
Thank you. Ladies and gentlemen, this will be our last question. It’s from the line of Maitri Shah from Sapphire Capital. Please go-ahead.
Maitri Shah
Yeah, hi, sir. How’s your. Congratulations [Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Maitri Shah
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Maitri Shah
[Foreign Speech]overall we are expecting a
Rameshbhai Ravajibhai Talavia
Margin be parallel improved.
Maitri Shah
So there will be improvement over 11% okay. Or EBITDA [Foreign Speech]
Vikas Mohanlal Agarwal
Approximately
Maitri Shah
[Foreign Speech] like 60, 40, 70, 30 30%
Rameshbhai Ravajibhai Talavia
Technical around 30% 35%.
Maitri Shah
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Maitri Shah
[Foreign Speech]
Rameshbhai Ravajibhai Talavia
[Foreign Speech]
Maitri Shah
Okay. Thank you so much.
Rameshbhai Ravajibhai Talavia
Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question. With that, we conclude today’s conference call. On behalf of TIL Advisors, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you