Sharda Cropchem Limited (NSE: SHARDACROP) Q3 2025 Earnings Call dated Jan. 24, 2025
Corporate Participants:
Manish Mahawar — Antique Stock Broking
Manish R. Bubna — Managing Director
Shailesh Anant Mehendale — Chief Financial Officer
Analysts:
Unidentified Participant
Rohit Nagraj — Analyst
Pritesh Chheda — Analyst
S. Ramesh — Analyst
Shubham Sehgal — Analyst
Ahmed Madha — Analyst
Rajat Setiya — Analyst
Himanshu Binani — Analyst
Saket Kapoor — Analyst
Riju Dalui — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Q3 and Nine Months FY ’25 Earnings Conference Call of Sharda Cropchem Limited. 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 zero on your touchstone phone. 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, Mr Manish.
Manish Mahawar — Antique Stock Broking
Thank you,. On behalf of Antique Stock Broking, warm welcome to all the participants on the 3Q FY ’25 earnings call of Shagar Top Chem. Today, we have Mr RV Bhutna, Chairman and Managing Director; and Mr Shailesh Bandale, CFO on the call. Without any delay, I would like to hand over the call to Mr Bhutna for opening remarks. Post which we will open the floor for Q&A. Thank you, and thank you. And over to Mr Bhutna.
Manish R. Bubna — Managing Director
Thank you,. Thank you very much. Good evening and very warm welcome to everyone present on this call. Along with me, I have Mr Mahindrale, our CFO; Mr, Company Secretary and our — and SG, our Investor Relations Advisors. Hope you all have received our investor deck by now. For those who have not, you can view them on the stock exchanges and the company website. As you are aware, we are engaged in marketing and distribution of wide range of agrochemical products, that is herbicide, insecticide, fungicide and biosides catering to diverse global customer-base. We prepare comprehensive dossiers, seek registrations in our own name in all the countries that we market our products to.
We allocate substantial resources and establish a foothold in the market by way of registrations. Our total registration — our total product registration stood at 2,948 as on 31st December 2024. Additionally, 1,047 applications of the project negations globally are in the pipeline at the approval stage. In Q3 FY ’25, the total revenues have grown by 47% to INR929 crores with substantial overall volume growth of 49% year-on-year. Europe, LatAm and NAFTA have been our key distributors in the agrochemical segment. Volumes from agrochemical segment grew by 50% year-on-year, year-on-year, whereas non-agrochemicals segment grew by 42% year-on-year.
With raw-material pricing stabilizing, gross margins have improved by 660 basis-points to 32.7%. EBITDA for the quarter has shown a year-on-year growth of 232%, which stands at INR157 crores. On similar lines, PAT of the quarter stands at INR31 crores. Overall growth is attributable to revival in the demand in agrochemical segment and cost optimization at companies level. The CapEx for the Nine-Month FY ’25 stood at INR268 crores and we expect the capex to be in the range of INR400 crores to INR450 crores for the full-year. This has been the best Q3 in Sada Crop Chem’s history in terms of revenues and profitability and we expect the momentum to carry-on forward in Q4 this year as well as FY ’26.As we step into last quarter of FY ’25, we are optimistic on delivering high-growth backed by substantial surge in-demand, gradual price increase. Also, through our dedicated efforts to optimize cost, we should meet our FY ’25 EBITDA margins guidance of 15% to 18%. To reward the shareholders for their continued support and confidence in the company, the Board of Directors have approved an interim dividend of INR3 per equity share.
With the above overview, I would now like to hand over the call to our CFO, Mr Mahindale, for discussing our financial performance — performance.
Shailesh Anant Mehendale — Chief Financial Officer
Thank you, everybody. Thank you so much. Yeah. Thank you, sir. Good evening, everyone. Coming to the quarter three FY ’25 performance, revenue stood at INR929 crores in Q3 FY ’25 versus INR632 crores in Q3 FY ’24, an increase of 47% year-on-year. Coming to split, agrochemical business increased by 15% year-on-year to INR769 crores, whereas the non-agrochemical business increased by 30% year-on-year to INR160 crores. Gross margins stood at 32.7% in Q3 FY ’25 as against 26.2% in Q3 FY ’24, an increase of 660 basis-points. EBITDA for the quarter increased by 232% to INR157 crores versus INR47 crores in-quarter three FY ’24 with EBITDA margin at 16.9%. PAT stood at INR31 crores in Q3 FY ’25 as against INR4.6 crore in Q3 FY ’24.
Coming to nine months FY ’25 performance, revenue stood at INR2,491 crores in Nine-Month FY ’25 versus INR1851 crores in nine months FY ’24, an increase of 35% year-on-year. Coming to the split, agrochemical business increased by 46% year-on-year to INR2082 crores, whereas the non-agrochemical business decreased by 4% year-on-year to INR409 crores. Gross margin stood at 30% in nine months FY ’25 as against 19.8% in nine months FY ’24. EBITDA for the nine months period stood at INR330 crores with EBITDA margin at 13.2%. PAT stood at INR101 crores in Nine-Month FY ’25 from a loss of INR112 crores in nine months FY ’24. Working capital days stand at 98 days, an improvement by 60 days as compared to as 31st March ’24. We remain net debt-free company and have cash bank and liquid investment of INR742 crores as on 31st December 2024.
We can now open the floor for the question-and-answers. Thank you.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wished to ask question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset only while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Viraj from Simple. Please go-ahead. Yeah
Unidentified Participant
. Hi, am I audible?
Operator
Yes, sir. Please go-ahead with the questions.
Unidentified Participant
Thanks for the opportunity and congratulations on good set of numbers in such a challenging environment. Sir, just couple of questions. First is in the business, what was the outperformance in terms of volume growth for us when I compare versus the end-market and say, euro, North-America. So can you just give some perspective whom did we gain the market-share from? And usually in, Q4 is the main season for us. So is that largely a channel filling and do we see any risk of sales return.
Manish R. Bubna
Hello. MR. Viraj, your voices and words are getting mixed up. Can you speak a little slowly and little more loudly?
Unidentified Participant
Am I audible now? Hello?
Manish R. Bubna
Yeah, you are auditable.
Unidentified Participant
Yeah. So sir, I have two questions to start in the business.
Manish R. Bubna
One is two questions. What is about yours?
Unidentified Participant
So I have two questions. First question is in the volume growth we saw in agrochemical business in Europe and in North-America, whom did we gain the market-share from? So can you give some perspective on the competitive landscape and market-share gains?
Manish R. Bubna
Sir, that is going to be a guesswork. They are getting market-share from the market and from all the players who are in the market, it’s very difficult to identify whose share we are getting.
Unidentified Participant
Okay. Sorry.
Manish R. Bubna
It is from the market.
Unidentified Participant
No, sir, okay. So I’ll put it differently.
Manish R. Bubna
No, no, again, your voice is getting cut.
Unidentified Participant
Yeah, Q4 is the peak season for us.
Manish R. Bubna
Yes.
Unidentified Participant
The growth in Q3 was largely a channel filling and do you see any risk of sales return?
Manish R. Bubna
Can you repeat the question once again? Your words are not very audible.
Unidentified Participant
So the growth — volume growth we saw in-quarter three,
Manish R. Bubna
Yes,
Unidentified Participant
Is that largely channel filling and do we see any risk of sales return in Q4?
Manish R. Bubna
We don’t see any risk of say goods getting returned. It’s a normal sale.
Unidentified Participant
Okay. Second question is, you know you see a lot of global MNCs selling legacy portfolio brands in last six to eight months and there is use of increase
Manish R. Bubna
For negative portfolio brand.
Unidentified Participant
Like legacy portfolio brands, a lot of MNCE — global MNCs are selling their old brands to third-parties and you’re also seeing a very heightened — I mean, you’ve seen some aggression of Chinese players in the market. So anything you are reading in the competitive intensity or competitive landscape from Chinese?
Manish R. Bubna
MR. Viraj, your words are getting mixed up and the voice is getting cut again. Can you speak one question and then get — wait for an answer and then go to the second question. What was your first question? Question is selling.
Unidentified Participant
Are you seeing any competition intensity from Chinese players in the market?
Manish R. Bubna
No. We are not seeing.
Unidentified Participant
Okay. Just one last question and I’ll come back-in queue. You know our depreciation run-rate is around —
Operator
We are not able to hear you very clearly. May we please request you to rejoin?
Unidentified Participant
Sure.
Operator
Yeah. Thank you. We have our next question from the line of Rohit Nagraj from B&K Securities. Please go-ahead.
Rohit Nagraj
Thanks for the opportunity and congrats on a very good set of numbers. Sir, first question is on the agrochemicals segment. So we have seen that the EBIT margins have been hardly 1% during the quarter. So what is the understanding here? Is it that we are not able to make money despite we have been successfully able to sell the products in terms of volumes, but on the margins front, the margins still look pretty benign. So just your understanding on the same. Thank you.
Manish R. Bubna
One minute. Say EBIT margin for the quarter is only 1%. 16.9%. Hello, Mr Nagraj, where did you get the figure of 1% of the EBIT quarter in this margin in this quarter?
Rohit Nagraj
The agrochemical segment, agrochemicals segment EBIT is —
Manish R. Bubna
It is not 1%, sir. It is from a surging point. 15.9% Mr Nagraj.
Rohit Nagraj
Okay. Maybe I’ll recheck the sector.
Manish R. Bubna
Agrochemical sector, this is overall says that you cannot call at company-level including agro and non-agro.
Rohit Nagraj
Right. And the segmental split-up that we have given in our results, in that we have made about INR7 crores of EBIT for the quarter. And in agrochemicals and non-agrochemicals, it is INR35 crores. So my question was related.
Manish R. Bubna
Yeah. I think EBIT margins are not split agro and non-agro. It is what is it? Where-is the EBIT margin? Your EBIT margin is. So there is no EBIT margin product-wise.
Rohit Nagraj
Okay. Fair enough, sir. No worries. No, I’ll take that offline. Sir, second question is in terms of the guidance you again reiterated that our EBITDA growth will be in the range of 15% to 18% as we had suggested earlier. If I look at the Nine-Month numbers, our EBITDA percentage is closer to say, 13% 14%. So effectively in next quarter, we will have to have more than 17% 18% of EBITDA. And given that
Manish R. Bubna
One minute, Mr Nagarag, these nine months consist of the first two quarters which are not doing so well. Right, right. In-spite of that, all these things put together is close to 14%. But if you take the — each quarter’s, we had 16.9%. The EBIT margin for the quarter three alone is almost 17%.
Rohit Nagraj
Correct. So we are fairly confident that last quarter also we will be able to have similar or better margins to achieve the guidance for FY?
Manish R. Bubna
We are sure. We are confident and we are sure.
Rohit Nagraj
Right. And just one last clarification. In terms of pricing of the, what is your sense during the month of January? I know it’s very early to say that given China is probably not working as of today, but is there any gradual improvement in prices of the agrochemicals? And how is the customer feedback on the same? Thank you.
Manish R. Bubna
Sir, there is an improvement, but again, it is very slow. It is not very fast, the improvement is very slow and the competition still remains there, which is not permitting the price levels to go up.
Rohit Nagraj
Thanks for attending all the best and I’ll come back-in the queue.
Manish R. Bubna
Okay.
Operator
Thank you. We have our next question from the line of Pritesh Chheda from Lucky Investments. Please go-ahead.
Pritesh Chheda
Sir, on the question which the previous participant asked, so on a base of 100, let’s say at the beginning of this financial year in terms of pricing, in 3/4 where we would have moved on pricing of agrochemicals, we would be higher than 100 at 100 or lower than 100. And what is 100 is the pricing of last year at the beginning of the year.
Manish R. Bubna
Last year’s prices at this time prices is more than 100.
Pritesh Chheda
Okay. And we are seeing gradual improvement every quarter?
Manish R. Bubna
Yes.
Pritesh Chheda
Can you quantify the extent of improvement? Is it 4%, 3%, 5%, 10%, any number you want to to it?
Manish R. Bubna
MR. Pritesh, it depends on product-to-product and the sector of the product.
Pritesh Chheda
If you have to take basket as a whole for you, then…
Manish R. Bubna
We don’t — we don’t do that calculation. And if you want, we can do that and you can come back to us later on.
Pritesh Chheda
Okay. But as a direction, as a general direction, the prices are in — are up that yes. Okay. Yes. Thank you very much. Okay. So the other — the other question if I want to ask here, this is first year where we are seeing the pricing up. Do you have any comment on it, any specific input on the pricing part?
Manish R. Bubna
I can’t understand. What could I have as a specific input.
Pritesh Chheda
In sense that you have any reading on this pricing improvement because last two years the pricing was on downtrend on general, they were, 15% 20%, 25% fall. So any comment you have or you don’t have any observation?
Manish R. Bubna
No, sir, the prices have not — have stopped going down, I think for the last 3/4. Yes. In these 3/4, the prices are gradually improving, but not to the extent which prevailed about two years back.
Pritesh Chheda
Correct. Is there any supply shrinkage in the system or it just takes slightly better demand or any other — any other observations?
Manish R. Bubna
MR., there is no supply shrinkage and this is all guided by the improved demand.
Pritesh Chheda
Okay. Okay. Thank you very much, sir.
Manish R. Bubna
Thank you.
Operator
Thank you. We have our next question from the line of S. Ramesh from Nirmal Bang Equities. Please go-ahead.
S. Ramesh
Thank you, and good evening. So the first question is, if you look at your overall portfolio performance, you’ve seen a very healthy growth in LatAm, although on a lower base and you also seen the herbicide segment do very well this quarter. So in terms of the outlook for 4th-quarter and then FY ’26, do you see the similar trend in terms of the growth in each region and the categories like herbicides, insecticides and-or do you see some changes in terms of the growth rates in different regions and across the categories.
Manish R. Bubna
I will answer your long question and very few words. We see general growth in all the sectors.
S. Ramesh
Okay. So how do you see the LatAm season shaping up since October when they started the planting season, you see that kind of delivering growth in terms of the acreage and the demand for crop protection chemicals? And is the inventory situation in LatAm now largely under control.
Manish R. Bubna
So inventory situation with the customers, I cannot comment, but the general demand is growing, but LatAm has a very serious issues of the economy of various important countries. This will come in the way. The currencies are slowly devaluating against dollar and euro. So these are some counter factors. But at the end-of-the day, they are growing.
S. Ramesh
Okay. So if you look at the Chinese situation, any insight you have in terms of any reduction in-production there because it seems to be adding a lot of capacity. So — and the second thing is in China, they are also talking about entering formulation market for exports. So how do you see these two aspects, the additional supply from China and the competition in formulations?
Manish R. Bubna
Our additional supply from China is growing and the products are available. Now competition from China in the international market at this stage is very insignificant.
S. Ramesh
Yeah, but I understand that they are planning to enter formulations and they already started. So do you see that as a competitive threat for companies like you? Or is there enough space
Manish R. Bubna
For not in the near-future
S. Ramesh
? Okay. Thank you very much and wish you all the best.
Manish R. Bubna
Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the in the meeting, please restrict your questions to two per participant. Should you have a follow-up questions, you may please rejoin the queue. The next question is from the line of Shubham Sehgal from Skill Ventures. Please go-ahead,
Shubham Sehgal
Am I audible?
Operator
Yes. Hello. Hello.
Manish R. Bubna
Yes.
Shubham Sehgal
Yes. So my first question is on depreciation. So like we have been doing like increasing capex spends, but our depreciation run-rate still remains low. So what does — like can you like explain this? And also what would be the sustainable run-rate of depreciation going-forward?
Manish R. Bubna
Just one minute depreciation run-rate will remain — you have to look at overall nine months period and accordingly, you take this into the consideration. Our run-rate will remain more or less same. If you look at, it is quarterly it is INR69 crores. So it will continue even in-quarter four. Only there will be some — some small change in view of the capitalization, but run-rate remains same.
Shubham Sehgal
Okay. And another question is on cash. So like even if we consider our capex of around INR400 crore INR500 crores and like even after that, our cash position would be healthy. So do we have any plans for utilization of this cash reserves that we’ll have.
Manish R. Bubna
See, right now, our hands are full and we don’t have any plan to utilize the cash. We are keeping it ready for any next future, some ideas or opportunities we may get. But right now, okay. We are only concentrating on investment in the non-tangible assets properties, which are registrations.
Shubham Sehgal
Okay, got it. And lastly on our non-agrochem market. So can you give any perspective on what is driving the growth and like we saw like good growth this quarter. So what could be driving our growth and what would be the sustainable margins in this business. As previously, we’ve seen that the average margins were around, 17%, 18%, but recently in last one, two years, we are doing above 20% margins even in a bad environment. So what’s like driving the growth and what would be the sustainable margins in this business going-forward in the non-agrochem market?
Manish R. Bubna
And we are very confident that this level will continue.
Shubham Sehgal
But can you give any idea of what is driving the growth like the growth we got in this quarter, like what is driving that? Yeah.
Manish R. Bubna
A good relationship with the customers, customer satisfaction, good service, timely deliveries and no of quality.
Shubham Sehgal
Has there like any demand shift because like these are the reasons we have there in our company, like those are the strong points, but like the market was going-in a — there was a bad environment going since one, two years. So is there like any shift in-demand or the environment is good? Like can you give any perspective on that?
Manish R. Bubna
Sir, your question has been very long and the words were getting cut in-between. So if you can make your question precise and then wait for the reply, that will be helpful. Otherwise, yes, yes.
Shubham Sehgal
Yes, yes. I’ll repeat my question. So I just mean to ask that has there been any change in the environment that we are getting this good growth in non-Ag chem?
Manish R. Bubna
I didn’t get that word change in and then the word got disappeared. What is the change?
Shubham Sehgal
What change in the market, like has the change in the market or environment?
Manish R. Bubna
No, there is no change in the market or environment, particularly for the non-agro business.
Shubham Sehgal
Okay. But like so this quarter we got 30% growth. So like any idea on that?
Manish R. Bubna
Again, that question was not very clear. Can you repeat it once again? What’s I getting up?
Shubham Sehgal
Okay. Am I clear right now? Hello?
Manish R. Bubna
Yes, you are clear right now. Yes, I mean to ask that since the past four, five quarters, we have seen de-growth in our non-agrochem business, right? So what caused like 30% growth in this quarter? That is what I’m meaning to ask you. See, the de-growth was mainly because of COVID and very long period of transit. Transit from China to the various Western destinations, the time period has grown and the customers are not able to get their supplies on-time, but now all those things are getting normalized and the growth is continuing.
Shubham Sehgal
Okay. So like all the supply-chain issues have resolved, that’s why we are seeing good growth, right?
Operator
Sorry, interrupt, sir. May we please request you to rejoin the queue.
Shubham Sehgal
Okay. Thank you.
Operator
Ladies and gentlemen, please restrict yourself to two questions per participant. We have our next question from the line of Madha from Unifi Capital. Please go-ahead.
Ahmed Madha
Thank you for the opportunity. I just have a simple question. If I just want to understand the ForEx losses. Is this because we have the receivables in euros and we make the payments to our suppliers in dollars. So because of the euro depreciation, we have incurred these losses. Is it the correct understanding?
Manish R. Bubna
Very correct. I’m very happy that you put the question and you also provided the answer.
Ahmed Madha
And sir, do you see further impact similar in the next quarter as well because of the currency?
Manish R. Bubna
My astrologist doesn’t tell me how the euro is going to behave and how much — how —
Ahmed Madha
But considering how much hedge you have and what is the current dollar — current euro exchange rate,
Manish R. Bubna
There is a trend in euro improving, strengthening against the dollar and this trend is very healthy for our business.
Ahmed Madha
Got it, sir.
Manish R. Bubna
Then we will not have exchange loss, we’ll have exchange gain.
Ahmed Madha
Okay, sir. And how much do we hedge in generally to avoid the major ForEx fluctuation on the P&L?
Manish R. Bubna
We — we hedged nominal, not very heavily because whenever you ask the experts how will the euro be in the next two weeks or next one month, the answer is very vague. So we have a hedged very nominal. Yeah. And one more thing, we also have a natural hedge. All our sourcing is mostly in US dollars and we have — apart from Europe, all other currencies also, we don’t have much of a variation between dollar and those things. Wherever the currencies are depreciating and we have to invoice the customers in the — their currencies, that is where we have a chance of ForEx losses..
Ahmed Madha
Got it, sir. Final question, what will be your guidance for full-year revenue growth and EBITDA margins for FY ’25?
Manish R. Bubna
It will be better than FY ’24.
Ahmed Madha
Got it, sir. Thank you.
Manish R. Bubna
Thank you.
Operator
Thank you. We have our next question from the line of Rajat Setiya from ithought PMS. Please go-ahead.
Rajat Setiya
Hi, thanks for the opportunity. Around segmental numbers, I thought Sat profit Usme sales to move to Kafika like 80% margin. So.
Manish R. Bubna
One minute. Can you repeat your question once again?
Rajat Setiya
[Foreign Speech]
Manish R. Bubna
One minute, one minute gentlemen this is after depreciation.
Rajat Setiya
[Foreign Speech]
Manish R. Bubna
This is a small technical question I’ll give to my CFO, let him reply to you.
Shailesh Anant Mehendale
Can you repeat the question?
Rajat Setiya
Yeah. So question is basically [Foreign Speech] Historically, we used to make 10%, 12%, 13% as well. So why are we — I mean, I think we have been guiding for 15% to 18% margins overall. So why are we not able to make money on the segmental basis in the agrochemicals?
Shailesh Anant Mehendale
Yeah. So I’ll just answer your question. See, this segment results, if you’re referring, is covering the — after taking the deprecision amortization hit in case of agrochemical because see agrochemical requires the product registration and that requires the amortization, which will — which has come in this after knitting of this INR676 crores — 6.76 is your agrochemical result, whereas non-agrochemical doesn’t have that kind of amortization. And the guidance which we have given so-far for 15% to 18% will stand even for the financial year and will be better-off then compared to last financial year.
Rajat Setiya
Okay. [Foreign Speech] I guess we are saying that on the basis of — I mean, losses, right, we are talking about 17% margins in this quarter, right?
Shailesh Anant Mehendale
Yeah. And that is how that — yeah, 17% is be pre-Forex losses, right?
Rajat Setiya
Okay. The ForEx loss, does it really result in any cash-flow expenses for us or is it just accounting this is…
Shailesh Anant Mehendale
See, this is as per the accounting or since we are operating in global markets, so there will be foreign currency receivables payables that needs to be realigned. So that is coming in as unrealized losses in our books. It is not realized.
Rajat Setiya
Okay.
Shailesh Anant Mehendale
So if the currency stay this major component is unrealized.
Rajat Setiya
Okay. So if the currency stayed this way, then it can — it can actually become a loss, right, in a —
Shailesh Anant Mehendale
If it continues at a time of either actual realized or received or payment, that time, yes, it will come as a realized, but it is presently unrealized.
Rajat Setiya
Understood. And sir, can you please share the — yeah, sorry, sorry.
Shailesh Anant Mehendale
One minute. No, no, continue.
Rajat Setiya
Okay. Can you please share the region-wise gross margin that we share every time like Europe and NAFTA and LatAm.
Manish R. Bubna
Hello. Sir, your time is over. The gentlemen, I said ask two questions and I would request you to other people also.
Rajat Setiya
Sure, sir. Thank you so much.
Operator
Thank you. Ladies and gentlemen, please restrict yourself to two questions per participant. We have our next question from the line of Himanshu Binani from Anand Rathi. Please go-ahead.
Himanshu Binani
Sir, hi. Thank you for taking my question and congratulations on a good set of numbers. So sir, coming back to the previous participants’ question in terms of the — when I actually look into the segmental revenue and the segmental results basically. So what the reported PDF says is that the agrochemical revenues have been somewhere around INR768 crores, while the results on the agrochemicals have posted somewhere around INR6.76 crore of segmental EBIT. So the EBIT margin is coming to somewhere around less than 1%. So this was the question basically. I want to have a clarity on that. Sir, have you understood?
Manish R. Bubna
Yeah. MR. Will answer this question.
Himanshu Binani
Sure, sir.
Shailesh Anant Mehendale
Yeah. So I think I have explained in the earlier — to earlier participant also, as per the disclosure of the segment results, this agrochemicals numbers, which is reported of INR6.76 crore is after taking the adjustment of the depreciation amortization, which is only there in case of agrochemical business. So those itself is around INR7 — if you can say INR69 crores, which is this agrochemical result is after adjusting INR69 crores of depreciation. So you have to look at that. So accordingly, reporting is done.
Himanshu Binani
Got it. Got it, sir. And the second — second question was largely on this, when we actually look into some news articles stating that there are the concerns in the rate seal that has been like subsiding. So any sense you get-in terms of the business, how one should actually look into the freight cost going-forward into the subsequent quarters because the prices have been on the increasing trend and this is what the commentaries have been like suggesting. So if that can help the margins, how should one actually look into that? Thank you.
Manish R. Bubna
See, my friend, freight costs have — we have been able to easily pass-on to our customers. So freight cost is not directly affecting us, except sometimes because of the delays in the transition transit period, the customers get affected by — because of non-recept of the goods on-time. The cost is not so significant in case of agrochemicals. It is a little more significant in the non-agrochemicals, but now they are also getting very — very normalized.
Himanshu Binani
Okay. Got it, sir. Got it.
Manish R. Bubna
Yes, please. Thank you.
Operator
Thank you. Thank you. We have our next question from the line of Saket Kapoor from Kapoorko. Please go-ahead.
Saket Kapoor
Navaskar, sir and thank you for this opportunity. Sir, firstly, out-of-the total sales, [Foreign Speech].
Manish R. Bubna
[Foreign Speech] local sale is less than 1%, okay all throughout. And that too, it is being done by one of our subsidiary companies. Sarda Crop Chem Limited is not selling anything locally.
Saket Kapoor
Okay, sir. [Foreign Speech] who are we competing with in that — in this space? India [Foreign Speech]?
Manish R. Bubna
[Foreign Speech] comparison because we are not operating in India.
Saket Kapoor
Okay, sir. [Foreign Speech]
Manish R. Bubna
[Foreign Speech].
Saket Kapoor
[Foreign Speech]
Manish R. Bubna
Agrochemical sector may volume growth is 49.5% and non-agrochemical sectors it is around 43%. So the volume which is driving our business.
Saket Kapoor
Right, but I was only looking for the underlying factor that contributed to this volume increase and their continuity in the near-future.
Manish R. Bubna
So the underlying factor is the demand and the customer satisfaction with our services of timely deliveries and good-quality.
Saket Kapoor
[Foreign Speech
Operator
Thank you. We have our next question from the line of Riju from Antique Stock Broking. Please go-ahead.
Riju Dalui
Hi, sir, thanks for the opportunity. Am I audible?
Operator
Hello please I can’t hear anything, sir.
Riju Dalui
Hello, sir. Am I audible?
Manish R. Bubna
Yeah. Now these words are audible, but you may see many more other words, they get cut-off. Let us try.
Riju Dalui
Yeah. Yes. So our overall volume growth or like our overall growth for the quarter was 47%, right? How much it was like volume-driven and currency-driven and the pricing. So if you could break it up by volume, price and currency?
Manish R. Bubna
One minute, hello, volume growth has been 49.1%, FX impact has been 0.4%, product and product mix is negative 2.5% and total growth is 47%.
Riju Dalui
Okay. Understood, understood. And if you could provide us the breakup of the registration by geography.
Manish R. Bubna
Yes, one minute, see we have 2,948 registration overall. If you go by geography then Europe accounts for 1,634 after 307, Latin-America, 760 and rest of the world 248.
Riju Dalui
Understood. And if you allow me for one more question. So earlier we used to give the region-wise gross margin for Agrochem. So if you could break it up, the gross margin region-wise for Agrochem.
Manish R. Bubna
No, that information is not available right now
Riju Dalui
And sir if it is available like the sales volume for agro game region-wise
Manish R. Bubna
One minute. I have that gross margin figures now.
Riju Dalui
Yeah, sure.
Manish R. Bubna
Europe is about 38%. NAFTA 31%, LatAm 35% and rest of the world 40%.
Riju Dalui
Thank you. And the region-wise sales volume for agro
Manish R. Bubna
Region-wise sales volume region-wise sales volume is Europe. Europe is some 4.9 million units, NAFTA is also 4.9 million units. Latin-America 0.75 and rest of the world 0.9.
Riju Dalui
Okay. Thank you, sir. Thanks for the clarification. That’s all from my side.
Manish R. Bubna
Thank you.
Operator
Thank you. We have our next question from the line of Rakesh Sharma, a shareholder. Please go-ahead.
Unidentified Participant
So thanks for the opportunity and I’m audible, sir.
Manish R. Bubna
Yes, please.
Unidentified Participant
See I have just one question. Sir, as the market situation is improving, but our net profit margin has decreased from 5.4% — 41% in Q2 to 3.34%. What is the reason for this?
Manish R. Bubna
Let me see. This sounds a little surprising to me also that the margins have decreased comp in the compared to quarter two, but let us see PAT margin is PAT margin?
Unidentified Participant
Yes, sir.
Manish R. Bubna
PAT margin, sir. Or gross margin, PAT margins of PAT margin. PAT margin is 3.1%.
Unidentified Participant
Whereas in Q2, it was 5.4%, sir.
Manish R. Bubna
Let me see. Hello, the main reason is forex — forex loss only. Euro has gone substantially down in this quarter, which has impacted our margins adversely. So all our sourcing is in dollars and if euro is weaker, then realization from the same quantity is lesser.
Unidentified Participant
Thank you, sir. Thank you.
Manish R. Bubna
Okay.
Operator
Thank you. We have our next question from the line of Viraj from Simple. Please go-ahead.
Unidentified Participant
Yeah, just two questions. One is on depreciation again. If the capex run-rate is around INR400 to 450, then why is the depreciation moderating? I mean, the annual depreciation seems to be moderating. So what explains that? Is there any change in accounting policy or any write-off of intangible we have taken in nine months?
Manish R. Bubna
I gave the mic to Mr.
Shailesh Anant Mehendale
Yeah. So see, our amortization — deploy amortization will remain in that level only. There is — if anything is — we are — product restrictions are discontinued, then we take it as a hit in P&L. But other by and large, we are — we will follow that what we have given the guidance on the depreciation side.
Unidentified Participant
Okay. And second question, continue. So please go-ahead. No, no, I have said that you have to look at the overall our year-end run-rate, which we are we are having around INR69 crore to INR70 crores at quarterly, so around INR270 crores INR278 crores 280 crore will be our annual P&L charge on account of depreciation, around INR270 crores. Okay, understood. And sir, second question is for the gross margin for different reasons for. Can you give a similar figure for the last quarters — last year similar quarter?
Shailesh Anant Mehendale
Yeah. So quarter three of last year same period.
Europe is 35%. NAFTA is 12% LATAM is 31% and rest of world is 28%. Total is 26%.
This is. I’m talking about agro.
Unidentified Participant
Yeah, understood.
Okay, these are the two questions I had. Thank you very much. Good luck.
Operator
Thank you. Thank you. We have our next question from the line of Rohit Nagaraj from BNK Securities.
Please go ahead.
Rohit Nagraj
Yeah, thanks for the follow up. So just one question again talking about the competitive intensity from China.
Given that you might be traveling to multiple geographies from business perspective, have we seen Chinese companies registering their products in other geographies the way we have been doing our business since fairly long time. Thank you.
Manish R. Bubna
There are some stray incidences.
Some Chinese companies are trying and registering their products.
Rohit Nagraj
Okay, fair enough. That’s all from my side.
Thank you.
Manish R. Bubna
Okay.
Operator
Thank you.
We have our next question from the line of S. Ramesh from Nirmal Bang equities. Please go ahead.
S. Ramesh
Yeah. So if you look at your past performance and if you look at the numbers you’re given in your presentation, what is the timeline you can envisage to achieve say 4000 crores revenue? Assuming the current volume growth and demand sustained. And once you achieve that kind of scale in terms of top line, do you think you will be able to achieve the kind of profitability you have seen in the past period?
Manish R. Bubna
See, I think we will be trying to reach this target this year of 4000 crores.
S. Ramesh
Okay. And if I might squeeze in one more question in terms of the growth diverse, given the kind of base we have in terms of high volume growth in the next one or two years you see volume growth in the double digits. And to the extent that you get price increase, will you see the volume growth and price increase contributing to top line growth? How do you see that performance? We see the same that your. Your question suggests. When this will grow, the top line will also grow. Okay. Thank you very much.
Manish R. Bubna
Thank you.
Operator
Thank you. The next question is from the line of Shubham Sehgal from Skill Ventures. Please go ahead.
Shubham Sehgal
Hello.
Now. Yeah.
Manish R. Bubna
Yeah.
Shubham Sehgal
My question is on our non aggroam business. So if you see in the past the margin we used to get around 16 to 18%. But in the last one to two years we are, we are getting consistently above 20% margins like north of 20, 25%. So are we doing anything differently here that we are getting better margins even after such bad environment?
Manish R. Bubna
I think, I mean some opportunities where our competitors are not able to meet the requirements of the customers and we are.
Shubham Sehgal
Okay. And like are we sourcing better now? That’s where margins have increased or is this just the opportunities we are tackling?
Manish R. Bubna
Sourcing? What
Shubham Sehgal
Have we like improved Our sourcing? That’s where the margins are improving or just the opportunities you mentioned?
Manish R. Bubna
I think it’s both the opportunities as well as our relationship with our suppliers.
Shubham Sehgal
Okay. All right. That’s.
That’s just my question. Thank you.
Operator
Thank you. We have our next question from the line of Rajat Setia from. iThought PMS. Please go ahead. Mr. Rajat, please go ahead with the questions. As there is no response, we’ll move on to the next question. The next question is from the line of Raja Kumar, our shareholder. Please go ahead.
Unidentified Participant
Yeah. Good evening, sir. Thanks for the opportunity. Sir, my question is. In the previous call, you mentioned that the guidance that you gave for FY25 was based on FY23. You said from that top line number, we will do 15%. So if I see March 23, you did 4,000 crores top line. So which means will you be doing 4600 plus in FY25?
Manish R. Bubna
No, 4600 is two MBC set target. I think we’ll. We’ll be doing around 4000.
Unidentified Participant
Okay. So it will be better than the Q4 of the last year. That’s because you did 1300 crores top.
Manish R. Bubna
Yeah, it’ll be quite better than Q3 Q4 of last year.
Unidentified Participant
Okay, sir. And. And what would. So we will be able to maintain a bit of about 18 to 19% for Q4. So. So as to meet overall EBITDA number of 15%.
Manish R. Bubna
Yes, please.
Unidentified Participant
Yeah.
Okay, sir. Thanks a lot.
Operator
Thank you. Thank you. We have our next question from the line of Vivek Rathi, an individual investor. Please go ahead.
Unidentified Participant
Hello sir. Thanks for the opportunity. So, just wanted to ask the part on the depreciation which you said. I know because of the depreciation this time around revenue of 600 odd crores. We’ve got this around 1% of the margin. But is it is it related to this particular quarter or we will see this happening over next few quarters as well.
Manish R. Bubna
Sir, one minute. I’m not able to grasp your questions. Either the words are getting mixed up or the quality of line is not so clear Again recommend. Please speak slowly and little loudly.
Unidentified Participant
Okay, sure. My question was on the one person the margin. I think for agrochemical we got 600 odd crores and 1% is 7 crore or reported as EBITDA. You mentioned in previous answer that it was because of the depreciation. Is that only 1/4 scenario or are we expecting it to continue? Further in few other quarters.
Shailesh Anant Mehendale
See, I think you are again referring to the segment disclosure. Right, right, right. Yeah. So this is as per the segment reporting disclosure. This. This figures has to be after taking the charge. Depreciation charge into account. Right. And this will be. This will continue or whatever depreciation on quarterly basis is this report numbers are coming after taking the depression charge. So it will continue.
Unidentified Participant
Okay, thank you. Yeah. Yeah, thanks. One last question. The registration. I remember in no last few conference calls the chairman mentioned that the registration process is complex across geographies for the. For the known different products. So that continue to the same even if companies in China or any other countries resting that process remains the same. Right.
Manish R. Bubna
You are referring registration process.
Unidentified Participant
Yeah, registration process for the. No, for the various products which we have.
Manish R. Bubna
Yeah. So what is your question
Unidentified Participant
In different geographies. So I recollect in last few quarters, I mean even before the team has mentioned that it is difficult to get it. It’s a complex process. Not easy and it takes years.
It’s not.
Shailesh Anant Mehendale
That’s correct. You are right. You are right on this. Right. So there is a. Yeah, yeah. It is complex process and takes time. You have to have patience to get registration. Yes, it will. It is right.
Unidentified Participant
And it is for every country. Not. I mean let’s say if somebody is applying for other countries. The process remains the same. There’s no. No, no leverage for anyone else as well. Right?
Shailesh Anant Mehendale
No.
Unidentified Participant
Okay. Thank you.
Shailesh Anant Mehendale
Yeah. Thank you.
Operator
Thank you ladies and gentlemen. That would be the last question for today. And I now hand the conference over to the management for closing comments. Over to you, sir.
Manish R. Bubna
Hello.
Operator
Yes sir. Any closing comments?
Manish R. Bubna
Yeah. I want to say in the end, thank you everyone for joining us. I hope we have been able to answer all your queries. We look forward to such interactions in the future. We hope to meet your expectations in future too. In case you require any further details, you may contact Mr. Devendruva from SGA, our investor relations partner. Thank you.
Operator
[Operator Closing Remarks]