Sharda Cropchem Q2 - Elevated Utility, Freight Costs, Negative Forex Movements Are Key Concerns: Dolat Capital
Ebitda witnessed a de-growth dragged down by higher input costs and higher opex which led to an Ebitda margin contraction.
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Dolat Capital Report
Sharda Cropchem Ltd.’s Q2 FY23 revenue grew by 12.2% YoY to Rs 7.2 billion (our estimate : Rs 8.1 billion) impacted by weak performance in Europe (up 11% YoY) and Latin America region (down 10% YoY).
Ebitda witnessed a de-growth of 27.5% YoY to Rs 651 million dragged down by higher input costs and higher opex (up 55.3% YoY) which led to an Ebitda margin contraction of 494 bps YoY to 9%.
Sharda Cropchem's profit after tax too took a significant hit declining by 62.3% YoY to Rs 121 million (our estimate: Rs 225 million) impacted by higher forex losses of Rs 387 million versus Rs 131 million in Q2 FY22.
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