Replying to Yash Ved of IIFL, M K Dhanuka says "Our production can be all time high in this year if the rainfall as per forecast is received at regular intervals with proper distribution.”
Give us the overview on the financials?
We have registered a growth of 5.57% increase in its net turnover for the FY16, at Rs. 828.79 crores as against Rs. 785.08 crores for last year. The company reported PAT of Rs.107.31 crores for FY16 compared to Rs.106.08 crores, for the previous fiscal.
How was the performance for the newly launched products-SEMPRA and COVER?
The performance of recently launched products i.e. SEMPRA and COVER is very enthusiastic.
The company is promoting SEMPRA which is only Weedicide available to control notorious weed Cyperus Rotundus, at the grass root level. The yield demonstrations are showing 12-15% increase in the yield in sugarcane where SEMPRA was used.
The Company received excellent response from the farmers for COVER in the first year itself and company could do sizable volumes of COVER in FY 15-16.
We hope these molecules will contribute substantially in the topline and bottom-line of the company.
What are the new products launches for the current year?
Dhanuka will be launching two 9(3) molecules as under:
MAXXSOY (Herbicide) a tie-up product of Nissan Chemicals, Japan for controlling all kind of weeds in Soybean. Dhanuka received first of its kind CIB registration for combo pack of three products. CONIKA (Fungicide) a tie-up product of Hokko Chemicals, Japan for controlling various fungal diseases in various crops.
Besides this, three to four molecules under section 9(4) will also be introduced out of which FUJITA (Isoprothiolane 40%EC) and DELIGHT (Propiconazole 13.9% + Difenconazole 13.9% EC:) have already been finalized.
How is the demand for agri inputs?
The major consumption of pesticides takes place from July onwards, post rainfall and sowing. The demand for agri inputs will start getting momentum from mid-June onwards.
What outlook do you see for operating profit margin?
Our first priority remains to sustain the current operating profit margins. The management is giving guidance for sustaining the same. However there is a possibility of a few bps improvements in the margins.
Your growth target for the current fiscal?
The company expects 20% + growth in the current fiscal.We are well positioned to pursue our strong growth potential and are moving forward with introducing our new products.
Any plans to shift production from its current manufacturing facility in Gurgaon to the new plant?
The company has started commercial production at its new unit at Keshwana (Rajasthan) from March, 2016 onwards. Few molecules from the Gurgaon unit have been shifted to the new facility.
Brief us about your plans for the road ahead?
The company expects CAPEX of approximately Rs. 10 crores in current fiscal to complete the 2nd phase at Keshwana Unit. Overall, Dhanuka expects financial year 2016-17 to be quite good for Indian farming community, Indian Agriculture, Agri input companies and the Indian economy.
Our production can be all time high in this year if the rainfall as per forecast is received at regular intervals with proper distribution.