Bhaskar Agrochemicals Ltd Management Discussions

The global economy continued to experience volatility during FY 2024-25, impacted by persistent inflationary pressures, global supply chain disruptions, and geopolitical tensions. According to IMF projections, global growth is estimated at 3.0% in 2024 and is expected to stabilize at 3.2% in 2025.

India retained its position as one of the fastest-growing major economies, with GDP growth projected at 6.7% in FY 2024-25.

The Indian agrochemical sector maintained strong growth momentum, driven by robust export demand and steady domestic consumption. The market size is estimated to have reached USD 36.5 billion, marking a growth rate of 10-12%. Technological advancements, including precision farming, drone-based spraying, IoT-enabled monitoring, and AI-driven crop protection, have continued to drive efficiencies and improve agrochemical utilization.

• Supportive government policies including PM-Kisan, soil health initiatives, crop insurance schemes, and higher minimum support prices.

• Rising adoption of biopesticides and sustainable farming practices, accounting for 15-18% of the domestic market.

• Growing awareness and training programs promoting responsible use of agrochemicals.

• Higher inventory levels in certain regions, leading to pricing pressures.

• Volatility in raw material prices due to global supply disruptions.

• Fluctuations in export demand from key international markets.

• Increasing competition from both domestic and multinational players.

During FY 2024-25, the Company achieved a revenue of Rs.9059.33 Lakhs compared to Rs.6,668.67 Lakhs in FY 2023-24, registering a 35.85% growth.

Profit after tax stood at Rs. 389.70 Lakhs against Rs.174.18 Lakhs in the previous year, reflecting improved operational efficiencies and better cost optimization strategies.

The management remains committed to expanding product offerings, strengthening relationships with domestic and international customers, and leveraging emerging opportunities in biopesticides and export markets. However, given the highly competitive market environment, the Company maintains a cautiously optimistic outlook for FY 2025-26.

The Company follows a structured Risk Management Framework to identify, monitor, and mitigate potential risks, including:

• Market Risks - Demand fluctuations and competitive pricing pressures.

• Operational Risks - Supply chain disruptions, raw material shortages, and production delays.

• Regulatory Risks - Changes in government policies and environmental regulations.

• Financial Risks - Currency volatility and interest rate fluctuations.

The Company has robust internal control systems designed to safeguard assets, ensure accuracy of accounting records, and enhance operational efficiency. Regular internal audits and system audits are conducted, and findings are reviewed by the Audit Committee. Corrective actions are implemented promptly to strengthen overall governance and compliance.

The detailed financial performance has been presented in the Boards Report under the section Financial Summary and Highlights.

The Company continues to focus on talent retention, training, and employee welfare. As on 31st March 2025, the Company has 130 permanent employees, compared to 114 employees in the previous year. Employee engagement initiatives, skill development programs, and safety awareness sessions were conducted to enhance workforce efficiency and morale.

The Company has not carried out any treatment different from that prescribed in the applicable Accounting Standards.

Statements in this Management Discussion and Analysis Report may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results may differ materially from those expressed or implied due to factors such as economic conditions, government policies, pricing dynamics, raw material availability, and regulatory changes.