• Revenue (Q2 FY24-25): INR 988 crore, up from INR 903 crore in Q2 FY23-24.

• Sequential Revenue Growth: 18% increase from INR 839 crore in Q1 FY24-25.

• Gross Margin (Q2 FY24-25): 42.6%, up by 421 basis points from 38.4% in Q2 FY23-24.

• EBITDA (Q2 FY24-25): INR 245 crore, a 31% increase from INR 188 crore in Q2 FY23-24.

• EBITDA Margin (Q2 FY24-25): 24.8%, up by 402 basis points from 20.8% in Q2 FY23-24.

• Profit After Tax (Q2 FY24-25): INR 193 crore, a 34% increase from INR 143 crore in Q2 FY23-24.

• PAT Margin (Q2 FY24-25): 19.5%, up by 360 basis points from 15.9% in Q2 FY23-24.

• Revenue (H1 FY24-25): INR 1,827 crore, up by 12% from INR 1,628 crore in H1 FY23-24.

• EBITDA (H1 FY24-25): INR 406 crore, a 51% increase from INR 269 crore in H1 FY23-24.

• EBITDA Margin (H1 FY24-25): 22.2%, up from 16.5% in H1 FY23-24.

• Profit After Tax (H1 FY24-25): INR 319 crore, a 56% increase from INR 205 crore in H1 FY23-24.

• Export Revenue Contribution (H1 FY24-25): Increased to 17% from 11% in H1 FY23-24.

• Sales Growth in South America and Japan (H1 FY24-25): 167% and 102% increase respectively.

• Warning! GuruFocus has detected 3 Warning Sign with BOM:542920.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sumitomo Chemical India Ltd (BOM:542920) reported a significant increase in gross profit margin, expanding by 421 basis points year over year to 42.6%.

• The company experienced a robust sales rebound in key export markets, including Japan and South America, reflecting a positive shift in global demand.

• New product launches, such as Mashi Army and Portion, drove a 65% year-over-year growth in sales, indicating successful adoption.

• The company's 'Everyday Farmers Day' campaign enhanced engagement with farmers, resulting in increased product awareness and adoption.

• Sumitomo Chemical India Ltd (BOM:542920) maintained strong financial discipline, with tight controls over collections and minimizing sales returns.

Negative Points

• Excess and uneven rainfall disrupted crop protection activities, affecting the consumption of agrochemical products.

• Cotton acreage declined sharply, particularly in North India, leading to reduced pesticide consumption.

• Delayed monsoon withdrawals damaged several crops, including rice, cotton, soybean, corn, and pulses in certain regions.

• The domestic agrochemical revenue growth was modest at 5% for H1, indicating challenges in the domestic market.

• The company faced a 15% average decline in product prices, impacting revenue growth despite increased volumes.