00:00 Hello and welcome to NDTV Profit. I am Varsha Chandani. Today we will be discussing Q3 FY24
00:06 numbers of Sharda Crop Camp. To discuss with us we have Mr. R. V. Bhubna, Managing Director
00:12 of the company. Hello sir and welcome to the show.
00:15 Hello madam.
00:16 So sir, if I just see your numbers, if you see revenue was down 37% while net profit
00:24 was down 95%. So what is the reason for this kind of weakness as you were expecting good
00:30 demand of your products in Q3 FY24?
00:34 No madam, Q3 FY24 has gone fairly as per our expectations. We are not expecting something
00:43 more than what we have achieved.
00:47 Sir, on that point if you see you had volume growth of 19% in last quarter. While this
00:54 quarter, correct me if I am wrong, volume growth was negative. So what has changed in
00:58 this quarter?
00:59 Sir, the main factor is demand and adverse weather conditions.
01:05 Sir, can you elaborate more on this? I mean, so which were the reasons, regions where you
01:12 see that there was no demand for your products?
01:17 Madam in Europe, there has been a drought this year which is quite significant. And
01:26 in USA, North America also there were storms and the weather was not so friendly.
01:35 And sir, when do you expect revival in these regions?
01:39 Revival in what?
01:41 When do you expect revival in these regions?
01:44 Madam, it is a question of nature. Nature does not stay at the same situation. It automatically
01:53 improves. So we are hoping that the fourth quarter would be better than third quarter.
02:00 And sir, so considering the China dumping, so how was the drop in prices for this quarter
02:06 and also do you expect it to continue due to unused capacity and higher supplies?
02:12 Madam, let me tell you the situation remains more or less the same. We do not see any increase
02:21 in the demand beyond their expectation, beyond their expectation. And the prices have also
02:30 not started improving.
02:33 So then my other question to this would be what is your strategy, meaning how will you
02:39 end FY24 and what is the outlook for FY25 if you have any?
02:43 Madam, outlook for FY25, it is too early to say. As far as strategy is concerned, we are
02:51 very much alert. We are taking stock of the situation and all the factors very closely
02:59 and trying to decide our policies accordingly. Our target is that we have a green, I mean
03:08 our profit should be on the positive side, not in the negative side which has been happening
03:15 in the last first three quarters.
03:17 And sir, any new launches that you are into, I mean can we expect new launches in coming
03:24 quarters?
03:25 Madam, we are receiving registrations. So new products are being introduced. But the
03:32 market situation is very pessimistic. So we do not expect a very big event, very big results
03:41 out of that.
03:42 And sir, everybody was actually expecting H2, I mean the problems will be solved from
03:49 H2 FY24. But currently we are seeing that there is still pressures coming from China.
03:55 So any views on China dumping and going forward, what do you expect?
04:02 Madam, China is, I would not use the word dumping. They are sitting with very heavy
04:08 amount of stocks, large amount of stocks. And they are also waiting and watching the
04:13 situation as if the demand comes up and they are able to reduce their stock, then I expect
04:21 some kind of enthusiasm in them. At present they are just waiting and watching for the
04:26 situation.
04:27 And then sir, considering the current situations, what are your CAPEX plans, I mean if not for
04:34 FY24 but for FY25?
04:37 Madam, our CAPEX plan will continue more or less at the same level as it has been happening
04:45 in the past.
04:46 And sir,
04:47 Because we cannot change those CAPEX strategies abruptly. They are worked out on a long-term
04:55 basis. And the registration process is also fairly long. So we cannot do any alteration
05:03 at this stage. If we do any reduction, then we will be unnecessarily delaying the receipt
05:10 of registrations and it will go against our interest in the near future, for the future
05:16 years, which we do not want to happen.
05:20 Sir, any kind of guidance that you would want to give with respect to top line and margins
05:25 going forward, maybe for FY25?
05:28 Madam, it is very difficult to say at this stage. As I have told you, we hope that it
05:35 will be better than the Q3 of this year. But it may not be as good as Q4 of last financial
05:44 year.
05:45 Alright sir, thank you so much for answering our questions. It was a pleasure speaking
05:50 to you.
05:51 Thank you so much, Madam Barsha. Thank you so much.
05:53 Thank you.
05:54 Thank you.
05:55 Thank you.
05:56 (dramatic music)
05:59 [music]
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