Nath Bio-Genes (India) Limited (NATHBIOGEN) Q4 FY23 Earnings Concall Transcript

Nath Bio-Genes (India) Limited (NSE:NATHBIOGEN) Q4 FY23 Earnings Concall dated Apr. 24, 2023.

Corporate Participants:

Unidentified Speaker —

Devinder Khurana — Chief Financial Officer

Satish Kagliwal — Managing Director

Harish Pandey — Director

Analysts:

Deepika Sharma — Go India Advisors — Analyst

Saman Bansari — — Analyst

Unidentified Participant — — Analyst

Darshan Zaveri — — Analyst

Adhithya Sen — — Analyst

Tarang — — Analyst

Amit — — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Nath Bio-Gene’s Q4 FY ’23 Earnings Conference Call, hosted by Go India 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. [Operator Instructions].

I now hand the conference over to Ms. Deepika Sharma from Go India Advisors. Thank you and over to you ma’am.

Deepika Sharma — Go India Advisors — Analyst

Thank you, Faizan [Phonetic]. Good afternoon, everyone, and welcome to Nath Bio-Genes Limited Earnings Call to discuss Q4 FY ’23 results. We have on the call [Technical Issues].

Unidentified Speaker —

[Technical Issues] bidding integrated with molecular markers, helped us achieve what we like to call a green product basket. This green product basket will form the basis and focus areas of all our future growth. This will also form the basis for effective product cycle management that will make the sales and marketing updated with new products, periodically. The key constituents of this basket are, our top-ranked cotton hybrid, Sanket.

Most Popular Bajra Seeds in the market Super 27. Three fast-growing paddy hybrids [Indecipherable] and unparalleled hybrid tomato seed [Indecipherable]. NCH-495 which is a unique chilli hybrid that is hot pepper, first-ever product in the industry, showing high tolerance to Black trees. Besides many more other winning products in crops like maize, cucumber, bittergourd et-cetera. France will continue to build a pipeline of exceptional products and use our well-invested pan-India distribution network, along with over Gerald oriented one sales team to reach our products to farmers at right place and time. Before I hand over to Mr. Khurana, for his comments, I would like to say that just as a tiny seed and small seed deliver power and potential to transform into a multi tree. We are confident that our power packed customizing seeds will transform our company into a leading seed company, very soon. Thank you. Over to Mr. Khurana.

Devinder Khurana — Chief Financial Officer

Thank you sir. Good afternoon, ladies and gentlemen and thank you for joining us today. Well I mean, the presentation has been uploaded on the exchanges and I’m sure you would have seen the same. As Mr. Kagliwal pointed out after two very difficult quarter duals, we are getting back on-track. Our revenue was are pretty much back to the pre-COVID levels and financial year ’23 is around 301 CRS, compared to 278 in the last year. Before I discuss the financial performance, I would like to talk about the operating highlights. I want to focus on balancing the product portfolio remains intact. As our NCP, that is non-cotton non-paddy portfolio contribution has in-house from 40% to 45% from 41% last year. We plan to continue to give people to this segment, which has decent margins make NCP as around 50% of our topline with cotton and paddy, contributing to the balance 50%.

We sold almost 13.8 lakh cotton packets in FY ’23, which is an increase of around 16% year to year. This reiterates by telling you that we will continue to focus on cotton in a stable fashion. Our highly condeseeds and has been a key driver of this performance and it continues to be a top-ranked cotton seed in the country. Paddy was generally maintained in volume and value. Our focus to promote Hybrid paddy with better margins is also on-track. Pajera segment delivered a strong growth in value and volume terms, both, with the volumes increasing by 58% and the value increasing by 66%, to INR32 crores. Wheat segment had a unique year with zero sales results. It grew in volume by 23% and value by 36%. Vegetable segment also grew in value by 16% to INR33.49 crores.

Though volumetrically, it declined by 13%. This means our focus on high-value, high-margin products, delivering a better price per kg is on. As Mr. Kagliwal pointed out, our dream product basket delivering ahead of our expectations and the market is that is good. I would also like to add here that we have entered into a joint-venture in Uzbekistan, with 90% shareholding. But they’re subject of this company is cotton seed production and marketing subsequently entering into other crops. We have presented the result as standalone and consolidated both. However, this year, the moment uzbekistan is almost nil this being the first year. I will now discuss the financial performance in detail. Revenues are back to pre-COVID levels and the club INR301crore. We continue to maintain our gross margin at 50% plus. Our PAT has increased by almost 1.6 times INR35 crores. Adonically the advanced booking this year grew by 67% over financial year ’22. This reflects our product acceptance in the market. They continue to be a zero-debt company with no long-term loans. Now, working capital continues to improve and they have reduced by almost 50 days this year. The inventory turnover reduced by 37 days. Debtors are maintained at 110 days, but I would like to point out that in case we reduce advance booking from renewables, it would be a debtor turnover of 38 days only. The company also clubbed a very around positive operating cash-flow of INR38.36 crores. The Board has once again recommended a dividend of 20% to the shareholders. This would be third year in a row.

Finally, we are confident of a good growth this year and are working towards the 10% to 15% top-line growth, while maintaining our gross margins. We would continue to have a steady growth in cotton and paddy. However, we continue to plan to give impetus to other feed crop vegetable for enhanced growth.

With this, I would like to open the floor for questions.

Questions and Answers:

Operator

Thank you very much. [Operator Instructions] The first question is from the line of Saman Bansari from Perpetual debentures. Please go-ahead.

Saman Bansari — — Analyst

Hi, sir. Sir, two questions. First is, ranged earning a formation that there have been reports that to earning in formation, monsoon will be a little weak. So, what impact do you see of the same on the demand for seed? And second question is that what have been the vegetable segment contribution this quarter, which ever the key products and which and which performed well in this segment. I just wanted to get a picture on that. Thank you.

Unidentified Speaker —

The first question Sathish sir.

Satish Kagliwal — Managing Director

[Indecipherable] There are, the reports of only note and then there are going to report also that the not being debt. So, I would like to volatility. But in any case, we have had some situations of volumes putting in and we are their partners, I have experienced this. In terms of Cropping pattern, not much changes due to same manner. So we, I think that is getting on the little bit of delays in planting based on the dividend part, but otherwise the segment and the, give anything, as I said, we have done recently and we are very confident that quarterly demand in cotton, which is the main drop-in will remain robust and very positive. That’s about the first question. And second question on divergence, last quarter was while, I would say generally okay, but that’s not that good. The reverse could be many. The amount of seeds was not that much high in the last quarter.

All the expectations was there that demand should pickup, but maybe the market balances within the various other reasons and also this unseasonal rains also affected the farmer’s confidence planting seeds. Last quarter was not that good that will continue to have good sales in products like our speciality in Raddish and also chilly especially chilly with the month of March. So they will do running production in the last quarter and with the debentures. Thank you.

Devinder Khurana — Chief Financial Officer

I would like to add here that in our, since I give very question in my investor community or the analysts to not to go on Q1 basis because we are unable to fathom because quarterly is also based on the sales return and the season flowing from one quarter to another, but we had around INR72 crore coming up in the second-half. Although that from 20 was vegetable only, so it was almost around, say, 25% plus. So, vegetable is definitely our mainstay and it is going to grow even faster. This year also, like I said earlier that we have had a vegetable up of almost about 32 in INR33 crores budget.

Saman Bansari — — Analyst

Okay sir, thank you and all the best.

Operator

Thank you. The next question is from the line of Kashwid from Centra Advisors. Please go-ahead.

Unidentified Participant — — Analyst

Yeah, thank you for the opportunity. Today I have four questions. The first one is on, what is the update on illegal BT under any hedging. And the second would be on the market-share, what is the market-share for individual cotton. Thank you.

Unidentified Speaker —

We have Mr. Harish Pandey our business lead. And he handles this on day-to day basis, and I request simple answer on illegal BT.

Harish Pandey — Director

Illegal BT. Okay, so I’ll talk about illegal BT. The percentage of the illegal BT comes around 18% to 19%, the majority is in Gujarat and Maharashtra, followed by Telangana and Andhra. So this year it won’t impact much because the last year performance of BT, the STB have not received well so happy with the region. So this year we will, because the project well. Hello.

Unidentified Participant — — Analyst

Yeah, we can hear you.

Harish Pandey — Director

Yeah, that’s all from my side.

Unidentified Speaker —

Okay, yeah, okay,

Unidentified Participant — — Analyst

And what is the market-share for that.Okay, thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Darshan Zaveri from Crown Capital, please go-ahead.

Darshan Zaveri — — Analyst

Hello, it’s. Thank you so much for taking the question. Congratulations on a great set of results. So far, I just want to show some after all kind of opinion. Can

Operator

Sorry to interrupt, please use the handset mode. Sir, the audio.

Darshan Zaveri — — Analyst

Yeah, little bit of. To ask about what– we said in the opening comment is about our so-so, in total 10% to 15% growth a bit on the conservative side or because we are having good traction, outperform that. And what impact Ebited margin would be the around

Operator

Very sorry to interrupt again. The audio is breaking sir, from your line.

Darshan Zaveri — — Analyst

Hello, Brigitte. I’m sorry for that. Hello.

Unidentified Speaker —

We just had that, you said 10% to 15%, is it conservative, I can answer that, but you’re also adding something else to that.

Darshan Zaveri — — Analyst

Yeah, but so first about our.

Operator

Mr. Zaveri I request you to rejoin the queue.

Unidentified Speaker —

Yeah, in the meantime, I will answer the question that he’s asked while audible. When we say it 10% to 15%, we are just trying to be practical. We would like to say that we wanted to do it. We have done it maybe a little more than going back and saying, sorry.

Operator

Thank you. [Operator Instructions] The next question is from the line of Adhithya Sen from Rovo Capital, please go-ahead.

Adhithya Sen — — Analyst

Hi, So I’ve got a couple of questions. So the first one would be, we got a guidance that we are increasing the dealer network from 7,000 to 20,000, so where are we presently in this scheme. Have you made any progress?

Unidentified Speaker —

Where did you get this guidance? did we did I?

Adhithya Sen — — Analyst

Actually, this is on the annual report, I’ve seen that.

Unidentified Speaker —

On the annual report, okay. Actually technically, what is happening is, we have tried to make three verticals. Our field crop, including cotton, and vegetable crop and Plant Nutrient supplement. Last year we found it was becoming a little untenable. So we have merged the crop, as well as the PMS. That is a brand-new supplement when and others, okay. The Company is currently operating two verticals, one vegetable and one non-vegetable I would Call-IT. So there, we already have on-board by 4000, 5000, 6,000 distributors this team would have rather. We don’t like to sell to the dealer level, because it becomes too cumbersome. So we are trying to expand our territories on need-based business. So currently, we don’t plan to go to 20,000. I think there is some this quarter but we with original already head is expanding into the, which are unchartered, where we have not yet been before and trying to enhance our business.

Adhithya Sen — — Analyst

Okay, so there is no plan as such to expand the distributor network,

Unidentified Speaker —

No. I know never said that. I said, we are expanding need-based distributor network.

Adhithya Sen — — Analyst

Okay, but there little explicitly that we are improving our direct retail to reach over 20,000, so that’s the way I hear this question.

Unidentified Speaker —

We do not plan to the retail business, we will stay with with the distributors only, okay.

Adhithya Sen — — Analyst

Okay. Okay and regarding the revenue, we had some nice targets to few years back-in the queue for 20 con-call also you said that 350, 400 Cr revenue will be possible. So any guidance on revenue front for this FY ’24 or FY ’25?

Unidentified Speaker —

I lready said, if you are comparing our targets with pre-COVID and saying, why the company would not go to 400, 500. I think the whole real that this. Well, let me keep that in mind, there’s no point then falling back to my 2020 conference call and say that we are expecting that you neither you nor me nor the world was expecting COVID, right. Two seasons of covid excessive build returned the company has bounced back. I think they have done a good job. Secondly as compare as coming to the– growth expected for the ’24. I have said, we expect top-line of enhancement of around 10% to 15%. We will maintain that if we go beyond that we’ll will be very happy.

Adhithya Sen — — Analyst

Sure, sir. I just asked for the forward guidance. I didn’t ask why we didn’t achieve that 350, 400

Unidentified Speaker —

[Multiple Speakers] 2020 you said $400 crores, $500 crores, that is why I had to go there. Otherwise, I’m fine with whatever guidance I’ve given okay.

Adhithya Sen — — Analyst

Okay, understood. Okay, I’ll follow back-in the queue. I’ll come back later.

Operator

Thank you. [Operator Instructions] The next question is from the line of Mikhail from Grubber systems. Please go-ahead.

Unidentified Participant — — Analyst

I have two questions for you today. One, government of India and United Nation has been aggressively promoting millets. Since it’s supposedly great crop for fighting climate change, than paddy and other crops. So how is our company since position to take this opportunity, right. And the second question is, what is our company’s vision that is where do we see a company in the next three to five years horizon. Thank you.

Unidentified Speaker —

I will request Dr. Kulkarni to handle the middle part and vision can definitely we handle, up.

Devinder Khurana — Chief Financial Officer

But then it is in the question. This is a proud moment for Nath Bio-Genes India Limited, because our millet hybrid is one of the most popular called hybrid in the market. Suppose is a before we are declaring the millet year, we were already in the moment of India. Our permanent bidding and so the bidding very strong. So in the market, one which is actually showing the best performance and it is highest prices in the net farmers are paying for us because of its performance. We are also having a better pipeline for the lease maturity and we are working on that. In addition to that, we have we are leaving high think high item 40 million, which are going to be nutritious also not only from security, we are also working on a nutritious facility the farmers, and we are part of as part of the millet moment. Thank you sir. And regarding Vijay, I would request Satish to please.

Satish Kagliwal — Managing Director

It’s very in such growing industry, which is. So any crops in so many geographies to support. Our Vijay is two crores, INR500 crores, topline in three years’ time, that’s the that’s the basic very simple state but FX. But this should take it as a forward-looking statement and this is what begin each okay.

Unidentified Participant — — Analyst

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Tarang from Old Bridge Capital. Please go-ahead.

Tarang — — Analyst

Hi, good evening. I just wanted to refer back to your opening comments, when you gave, give a hint on advance bookings and corresponding debtor turnover to be 38 days instead of 118 days, which if I were to calculate on the basis of what’s seeing what’s being seen on the balance sheet. So just wanted to get a sense PE, is are there any specific rroducts where you’re seeing more traction or is it across your portfolio? And how has this has been. I mean, that’s what you. I think you said it versus FY ’22, would it mean is versus what we saw in March ’22?

Satish Kagliwal — Managing Director

Advance booking, is something which comes to us based on the products which are demand into the market. And the people expect that they may not be available in the demand. There’s going to be a demand-supply gap. So we get advance booking is mostly cotton with other crops also joining ahead and there. When I say comparison of the advanced booking window for last year, it is FY 122 FY 123. There has been a good jump a good growth in advanced bookings. As can be as regards debtors, I said that because book income from the same customer for B2B E-money to us. So, technically, it does that asset and liability getting scared off. We don’t do it in the balance sheet because we need to keep it separate for official and audit results. I was just giving that was the calculation.

Tarang — — Analyst

Sure, so would it be fair to presume that about INR55 to INR60 crores is the advance booking number. Yeah, I gave that number, what was the number, what was the number, yes. I was looking. Yeah, it is around 55 crores. Okay. Yeah, that’s helpful, sir. Thank you. Is that how Palo.

Satish Kagliwal — Managing Director

Yes please.

Tarang — — Analyst

Yes, is there is that also the reason why our inventory levels are lower as of March ’23, versus what we saw in the PV cells.

Satish Kagliwal — Managing Director

Inventory levels may have and it got automatically in half sometime in ’21 pursuant to COVID and excessive sales they done it all. I made a statement in more of the earlier con-call that we are reducing on production, making it only need base so that our existing stocks and also be liquidity into the market. This year has been good, wherein we have been able to liquidate, quite a few of the ’21 stocks. So as and when the inventory is going down by inventory is likely to go up because our sales next year are projected to be more but they on an overall fashion by inventory has definitely gone up by 37 days.

Tarang — — Analyst

Got it, got it. And the final question, other than the advance booking and the product that you might have sold-out for the season. Is is there any more potential for write-offs in the business.

Satish Kagliwal — Managing Director

No, definitely not.

Tarang — — Analyst

Okay, and last if. I look at.FY >23, and I compare it to The pre-COVID your of. FY 21, right, a good year of FY 21 where you had done similar number similar revenue line. See your selling and distribution expenses increased materially versus what it was in FY ’21, what could one attribute this to.

Unidentified Speaker —

There are two-ways of marketing. One is, could you give the latest credit to the trade. And then the products. They demand and the goal for themselves, but then we want to enhance that distributed line when we want to announce the top-line to give a little more of the credit to the better selling expenses schemes to the distributors, so that our top-line can increase. What our marketing people, though, will they also apply and also MRP or the selling price partially cater for this. But yes, we have increased our revenue expenses 70%, 80% almost about 43% down.

Unidentified Participant — — Analyst

Okay, got it. This is good, sir. Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Amit, an Individual Investor. Please go-ahead.

Amit — — Analyst

Hello. Hello.

Unidentified Speaker —

Yes. I mean, correct.

Amit — — Analyst

Yeah, good evening, sir. Sir, I have one question. In the financial year ’22, we have written-off advances to the tune of INR88 crore and at that time in that earnings Call, it was given to understand that, it is likely to be recovered in the coming financial year. Well, I just wanted to know the update status of those advances, it was around INR88 crores, INR89 crores. Yeah, this is pre-size the 88 something, yeah. Secondly, if you go through my. Con-call briefing on this issue. It is actually mentioned the reason for the same. So I’m not going back into that. Coming back to your question that it was

Unidentified Speaker —

Yeah, this is pre-size the 88 something, yeah. Secondly, if you go through my. Con-call briefing on this issue. It is actually mentioned the reason for the same. So I’m not going back into that. Coming back to your question that it was give the stand that they will be recovered in the financial year. Kindly please understand nowhere did we say that will be recovered this financial year.The reason behind INR88 crores is farming community. There are major come out there about distributor there basically fibers. And to push the fibers, when we are trying to get our production from the same areas,Iit’s a little difficult. This year, there has been hardly any recovery, although we are trying to recover part of it through, the production program given to the same people trying to recover 20, 30 was from that. So I’m hoping something else may get recovered, but we have already taken the bidding and profit and loss account.

So that will not suffer anymore because of this. And somebody asked me anymore write-off. I said, definitely not.

Amit — — Analyst

Okay, okay. Thank you sir.

Operator

Thank you. The next question is from the line of Darshan Zaveri from Crown Capital, please go-ahead.

Darshan Zaveri — — Analyst

Yeah, so sir. I actually just. I think you’ve been very clear about the revenue, so. I would not want to ask about that, but our margins could we benefit of premiumization operating leverage as our revenue increases. So what would be the steady-state margin that we would be targeting, sir.

Devinder Khurana — Chief Financial Officer

Like, in my on opening I said, that we are maintaining a gross margin of around 50% plus, that will be maintained. It varies from crop to crop variety to variety place to place. The whole thing apart from cotton is demand-supply game. If your product is in-demand, let’s say, forget is in-demand is hugely in demand and we are unable to increase the price and charged any premium. If it is selling in black, then the distributors are making money out of it, we don’t. But all other production, it is demand-supply, we maintained our gross margins, 250% plus for last so many years now with enhancement of sales and not increasing the bottom-line expenses give me a better profit.

Darshan Zaveri — — Analyst

Okay sir. And sir with regards to our selling and distribution increase that we have seen this year. So would that be the same that you might continue for the next one-two years or would that we would be that would more as yes.

Saman Bansari — — Analyst

Mostly yes.

Darshan Zaveri — — Analyst

Okay, so figure. Thank you saw that has and all the best for your results. Thank you.

Saman Bansari — — Analyst

Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Siddharth, an Individual Investor. Please go-ahead.

Unidentified Participant — — Analyst

Hi, sir. Yeah, hello.

Devinder Khurana — Chief Financial Officer

Yeah, we can hear you, please go on.

Unidentified Participant — — Analyst

[Foreign Speech]

Devinder Khurana — Chief Financial Officer

[Foreign Speech] And I am expecting growth of basically an EBITDA to around 16% to 18%, and, around 11% to 14%, this is our conservative look out for the coming year. [Foreign Speech]

Unidentified Participant — — Analyst

Okay sir, thank you sir. Thank you sir, thank you very much.

Operator

Thank you. [Operator Instructions] The next question is from the line of Jeremy, an Individual Investor. Please go-ahead.

Unidentified Participant — — Analyst

Hi everyone, thanks for giving this opportunity. I wanted to know like what the margins are not growing and sector growth is not that much.

Satish Kagliwal — Managing Director

All, I can go up, margins are not going. I could not understand can please elaborate?

Unidentified Participant — — Analyst

So if I see the previous quarter we had, I mean 22%. [Multiple Speakers]

Devinder Khurana — Chief Financial Officer

Two things you please take it from me. One is that kindly don’t compare us on quarter-to-quarter basis, because Q1 and Q2 are generally merged in H1 and which gives me that unbooked the final figures. The same happened in the second half. As far as margins are concerned, EBITDA, net profit I already mentioned earlier for gross margin, I said, we have been maintaining fifty-fifty one 52%, which is a good margin for this kind of industry. Paddy, we are buying the product mix from more to hybrid, which gives us definitely much better partners that is taking a little time because the products have to be accepted into the market to be sold and volumes and quantums. But we are headed hasn’t declined. It has maintained almost maintained. Cotton has gone up, all other crops have gone up. We don’t expect all the crops to go about the, please.

Unidentified Participant — — Analyst

Okay, okay, thank you for your answer. And we also wanted to know like what efforts we are making to recover the 9,000 Max. That is. Provision last March.

Devinder Khurana — Chief Financial Officer

I just want to say that in the earlier question that if go through. This question was asked by the British.

Unidentified Participant — — Analyst

Yes, yes, listen, that’s a you mentioned that it didn’t we recorded in coming years. But what efforts, we are trying to make to recover it because

Devinder Khurana — Chief Financial Officer

There are only there are only two-ways or three ways of going on it. One is the farmers who are unable to pay. I give them some more production. And I try and contribute them to a few percentage or whatever, that is they were giving up on the lag. I will say, both our side you don’t get the look of our. I would recover, you’re already it’s a time-consuming process, but one which is the most safe and which is a slow and steady way of buying. Secondly I legal, it doesn’t make a difference. One of the farmer commit suicide everything goes for adults. I’m not going to get into that political and Rogelio. We have got going on that view. Thirdly, I’ve already created provisions, they would be the happiest to recover whatever best we can. The recovery process always be on by softer and settle, because we can’t go forcibly on the issues.

Unidentified Participant — — Analyst

Okay, sir. I appreciate your response on the results. And I hope we’ll have good rainfall and good sales this year.

Devinder Khurana — Chief Financial Officer

Yeah, thank you very much, thanks very much, that is one positive way of pushing us all. Thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Aditya Sen Rovo Capital please go ahead.

Adhithya Sen — — Analyst

Hi guys, this is just a small question on the paddy realizations. I see that the paddy realizations have increased nearly. It’s like, it’s much better than what we expected and what we heard in the previous con-calls. So I just wanted to confirm, will this sustain going-forward or how will the strength.

Satish Kagliwal — Managing Director

Paddy said this year, it just maintained over last year, okay. There are no stupendous growth in paddy, this year, and I gave the reason that we are trying to move more into hybrid then by research. The third-party is more volume with less margin Hybrid is less volume, but more partners, but we have a very strong research line-of-credit of the has already been briefing that retirement again, and we expect paddy and cotton to be our mainstay and contribute around 50% to the top-line. And balance would be worse than we would like to add to non-cotton not portfolios so that finally we have a balanced product mix, it is already down to 55, 45.

Adhithya Sen — — Analyst

Right. Great. So any vision on the paddy realizations going-forward. Since we are increasing the hybrid portfolio. So, in what proportion proportion should it increase.

Satish Kagliwal — Managing Director

Proportion there as of now is a little difficult to put across. But like margin-wise, definitely it is much better. So let me it but H1 one, maybe we’ll be able to get a better picture.

Adhithya Sen — — Analyst

Got it, okay. Thank.

Operator

Thank you. As there are no further questions. I would now like to hand the conference over to the management for closing comments. We have one question came in the queue from the line of Tarang from Old Bridge Capital. Please go-ahead.

Tarang — — Analyst

So if you add there. Starting off your address we gave a guidance that you probably expect though business to grow by about 10% to 15% in FY ’24. Is it is it on account. I mean is there something different or is that a market-related growth that you think what’s going to drive this 10% to 15% growth in your opinion.

Satish Kagliwal — Managing Director

Say, we have to take-in all sectors in play. It would be available on-market available or products available funds available of, you know, the season and all those sectors, together, I said that we would, we are growing by 10% to 15%. Somebody asked me whether this is a conservative opinion. I said yes. So it does a mix of all the factors put together, but let’s see behaves and then I think we’ll be able to give a better picture one carry with over.

Tarang — — Analyst

Okay, better. Thanks.

Operator

Thank you. As there are no further questions. I would now like to hand the conference over to the management for closing comments.

Satish Kagliwal — Managing Director

Okay then and thank you again. Thanks a lot, volume is time that you give to our company. And I always find that by interest in this company is always good because our business is quite. Lucrative good margins because of certain things, like over two years of excessive test it on and farmer got coming out for joining. We also want to put on the back bench, but then over a period of this year, we are trying to come back to normalcy. I’m happy to announce that we are already, we are almost there and if this year meant is the way we plan to maintain, we should be back on the part. As far as the product portfolio balancing is concerned, it is reasonably getting balanced with all crops contributing to the topline and the bottom-line. Our product being well-accepted into the market, the demand from the market, including of which is evident in advanced bookings, that also is looking good.

So as a result, we are on the track and we request all of you to play that we continue to work on that, we in any case, we’ll be working on that. Thank you. Thank you very much.

Operator

[Operator Closing Remarks]