Dhanuka Agritech Q3 2026 Dhanuka Agritech Ltd Earnings Call | AllMind AI Earnings | AllMind AI
Q3 2026 Dhanuka Agritech Ltd Earnings Call
Speaker #1: Ltd. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. I now hand the conference over to Mr. Rajiv Daloe from Antik Stock Broking Ltd. Thank you, and over to you.
Speaker #1: sir. Thank you.
[Translator]: Thank you. Good afternoon, everyone. I am pleased to host today's earnings call of Dhanuka Agritech. We have leadership team represented by Mr. M. K.
Speaker #2: Good afternoon, everyone. I'm pleased to host today's learning call of Dhanuka Agritech. We have the leadership team represented by Mr. M. K. Dhanuka, Chairman; Mr. Rahul Dhanuka, Managing Director; Mr. Harsh Dhanuka, Executive Director; and Mr. V.
Operator: धानुका, चेयरमैन; मिस्टर राहुल धानुका, मैनेजिंग डायरेक्टर; मिस्टर हर्ष धानुका, एक्जीक्यूटिव डायरेक्टर; एंड मिस्टर वी. के. बंसल, CFO ऑन दी कॉल। विदाउट एनी डिले, आई वुड लाइक टू इनवाइट मिस्टर एम. के. धानुका टू स्टार्ट विद ओपनिंग कमेंट्स, पोस्ट विच यू विल ओपन दी फ्लोर फॉर Q&A। थैंक यू, एंड ओवर टू यू, सर। थैंक यू, रिजू। गुड आफ्टरनून, लेडीज़ एंड जेंटलमैन। आई एम एम. के. धानुका, चेयरमैन ऑफ़ धानुका एग्रीटेक लिमिटेड। वेलकम यू ऑल टू दी Q3 FY26 अर्निंग कॉल। आई हैव विथ मी मिस्टर राहुल धानुका, मैनेजिंग डायरेक्टर; मिस्टर हर्ष धानुका, एग्जीक्यूटिव डायरेक्टर; एंड मिस्टर वी. के.
Mahendra Kumar Dhanuka: धानुका, चेयरमैन; मिस्टर राहुल धानुका, मैनेजिंग डायरेक्टर; मिस्टर हर्ष धानुका, एक्जीक्यूटिव डायरेक्टर; एंड मिस्टर वी. के. बंसल, CFO ऑन दी कॉल। विदाउट एनी डिले, आई वुड लाइक टू इनवाइट मिस्टर एम. के. धानुका टू स्टार्ट विद ओपनिंग कमेंट्स, पोस्ट विच यू विल ओपन दी फ्लोर फॉर Q&A। थैंक यू, एंड ओवर टू यू, सर। थैंक यू, रिजू। गुड आफ्टरनून, लेडीज़ एंड जेंटलमैन। आई एम एम. के. धानुका, चेयरमैन ऑफ़ धानुका एग्रीटेक लिमिटेड। वेलकम यू ऑल टू दी Q3 FY26 अर्निंग कॉल। आई हैव विथ मी मिस्टर राहुल धानुका, मैनेजिंग डायरेक्टर; मिस्टर हर्ष धानुका, एग्जीक्यूटिव डायरेक्टर; एंड मिस्टर वी. के.
Speaker #2: K. Bansul, CFO, on the call. Without any delay, I would like to invite Mr. M. K. Dhanuka to start with opening comments, post which we will open the floor for Q&A.
Speaker #2: Thank you, and over to you, sir.
Speaker #3: Thank you, Rajiv. Good afternoon, ladies and gentlemen. I am M. K. Dhanuka, Chairman of Dhanuka Agritech Ltd. I welcome you all to the Q3 FY26 earnings call.
Speaker #3: I have with me Mr. Rahul Dhanuka, Managing Director, Mr. Harsh Dhanuka, Executive Director, and Mr. V. K. Bansul, CFO of the company. As you are aware, Dhanuka Agritech is a leading Indian agrochemical company.
Operator: Bansal, CFO of the company. As you are aware, Dhanuka Agritech is a leading Indian agrochemical company. Dhanuka is working with the vision of through agriculture. We have a pan India presence in all major states to reach out to more than 10 million farmers with our products and services. Dhanuka's focus has been on introduction of novel chemistry and extensive product development, distinguishing us from the rest of the industry. Over last couple of years, we have set up two research and technology centers to enhance our focus on innovation and research. One of the centers is focused on applied chemistry and working for establishment of new products and new formulation development. The second laboratory is focused on innovation in chemical synthesis for generic and late stage patented products. To support our investment in innovation, we have significantly enhanced our regulatory team to speed up our India as international registration initiative, providing us fast access to international markets and quicker introduction of new products. Dhanuka is in international collaboration with 10 leading global agrochemical companies from Japan, US and Europe, which helps us to introduce the latest technology in India. With four manufacturing units and 41 warehouses across India, we cater to around 6,500 distributors and 80,000 retailers. Dhanuka has a strong sales and marketing team to promote and develop new products. During this quarter, agrochemical demand remained weak due to stressed demand drivers, weather issues, low crop prices, leading to industry wide volume decline. Farmer interest reduced in making investment in crop production chemicals due to lower crop prices. South and West India saw sharp demand declines, while East and North remained stable. Indian farmers delayed purchase due to significantly extended rainfall and weaker commodity realization. Lower farm income reduced spending on crop production products, impacting domestic sales. Further, I am happy to share that we have commercialized the second product from Dahej plant in Q3 FY26. We are working for making Dahej operations EBITDA positive in FY27 and try to reach 80% capacity utilization of the existing plant. Also, we are in the final stage of working for the business plan for MPP 2 and will be concluding the same within this year. Now, moving on to the financial performance for the last quarter, our revenue from operations stood at ₹409.92 crores in Q3 FY25-26 versus ₹445.27 crores in Q3 FY24-25. EBITDA stood at ₹58.66 crores in Q3 FY25-26 versus ₹75.56 crores in Q3 FY24-25. Profit after tax stood at ₹40 crores in Q3 FY25-26 versus ₹55.04 crores in Q3 of FY24-25. FY25-26 with two straight negative quarters has been a blemish on an otherwise decent performance from Dhanuka over the years. I can assure the stakeholders that the bad phase is over now and now in future, it is going to be good only. I would like to assure our shareholders and our stakeholders that our strategy is well laid out with continuous extension in rural market penetration, new product introduction, technical manufacturing and international market expansion. We are confident on delivering our long term objective of achieving double digital CAGR. Zone wise percentage share of turnover for Q3 FY25-26: North India 25%, East India 11%, West India 30% and South India 34%. Product category wise percentage share of turnover for Q3 FY25-26: Insecticides 28%, Fungicides 21%, Herbicides 37%, Others 14%. Dhanuka considers itself responsible towards securing the farmers' welfare and preserving food security of the nation. We continue to strengthen our association with the agriculture university, Krishi Vigyan Kendra and other critical institutions to impart knowledge and latest technology to the farmers. Thank you very much for your kind attention. And now, we would like to open the forum to take the questions. Thank you. Thank you very much. We will now begin the question answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prashant Biyani from Elara Securities. Please go ahead. Thank you for the opportunity. Sir, how is the current demand scenario for agrochemicals?
[Translator]: Bansal, CFO of the company. As you are aware, Dhanuka Agritech is a leading Indian agrochemical company. Dhanuka is working with the vision of through agriculture. We have a pan India presence in all major states to reach out to more than 10 million farmers with our products and services. Dhanuka's focus has been on introduction of novel chemistry and extensive product development, distinguishing us from the rest of the industry. Over last couple of years, we have set up two research and technology centers to enhance our focus on innovation and research. One of the centers is focused on applied chemistry and working for establishment of new products and new formulation development. The second laboratory is focused on innovation in chemical synthesis for generic and late stage patented products. To support our investment in innovation, we have significantly enhanced our regulatory team to speed up our India as international registration initiative, providing us fast access to international markets and quicker introduction of new products. Dhanuka is in international collaboration with 10 leading global agrochemical companies from Japan, US and Europe, which helps us to introduce the latest technology in India. With four manufacturing units and 41 warehouses across India, we cater to around 6,500 distributors and 80,000 retailers. Dhanuka has a strong sales and marketing team to promote and develop new products. During this quarter, agrochemical demand remained weak due to stressed demand drivers, weather issues, low crop prices, leading to industry wide volume decline. Farmer interest reduced in making investment in crop production chemicals due to lower crop prices. South and West India saw sharp demand declines, while East and North remained stable. Indian farmers delayed purchase due to significantly extended rainfall and weaker commodity realization. Lower farm income reduced spending on crop production products, impacting domestic sales. Further, I am happy to share that we have commercialized the second product from Dahej plant in Q3 FY26. We are working for making Dahej operations EBITDA positive in FY27 and try to reach 80% capacity utilization of the existing plant. Also, we are in the final stage of working for the business plan for MPP 2 and will be concluding the same within this year. Now, moving on to the financial performance for the last quarter, our revenue from operations stood at ₹409.92 crores in Q3 FY25-26 versus ₹445.27 crores in Q3 FY24-25. EBITDA stood at ₹58.66 crores in Q3 FY25-26 versus ₹75.56 crores in Q3 FY24-25. Profit after tax stood at ₹40 crores in Q3 FY25-26 versus ₹55.04 crores in Q3 of FY24-25. FY25-26 with two straight negative quarters has been a blemish on an otherwise decent performance from Dhanuka over the years. I can assure the stakeholders that the bad phase is over now and now in future, it is going to be good only. I would like to assure our shareholders and our stakeholders that our strategy is well laid out with continuous extension in rural market penetration, new product introduction, technical manufacturing and international market expansion. We are confident on delivering our long term objective of achieving double digital CAGR. Zone wise percentage share of turnover for Q3 FY25-26: North India 25%, East India 11%, West India 30% and South India 34%. Product category wise percentage share of turnover for Q3 FY25-26: Insecticides 28%, Fungicides 21%, Herbicides 37%, Others 14%. Dhanuka considers itself responsible towards securing the farmers' welfare and preserving food security of the nation. We continue to strengthen our association with the agriculture university, Krishi Vigyan Kendra and other critical institutions to impart knowledge and latest technology to the farmers. Thank you very much for your kind attention. And now, we would like to open the forum to take the questions. Thank you.
Speaker #3: Dhanuka is working with the vision of growth through agriculture. We have a pan-India presence in all major states to reach out to more than 10 million farmers with our products and services.
Speaker #3: Dhanuka's key focus has been on introduction of novel chemistries and extensive product development, distinguishing us from the rest of the industry. Over the last couple of years, we have set up two research and technology centers to enhance our focus on innovation and research.
Speaker #3: One of the centers is focused on applied chemistry and working for establishment of new products and new formulation development. The second laboratory is focused on innovation in chemical synthesis for generic and late-stage patented products.
Speaker #3: To support our investment in innovation, we have significantly enhanced our regulatory team to speed up our Indian international registration initiatives, providing us faster access to international markets and quicker introduction of new products.
Speaker #3: Dhanuka has international collaborations with 10 leading global agrochemical companies from Japan, US, and Europe, which helps us to introduce the latest technology in India.
Speaker #3: With four manufacturing units and 41 warehouses across India, we reach approximately 6,500 distributors and 80,000 retailers. Dhanuka has a strong sales and marketing team to promote and develop new products.
Speaker #3: During this quarter, agrochemical demand remained weak due to stressed demand drivers, weather issues, and low crop prices, leading to an industry-wide volume decline. Farmer interest reduced in making investments in crop production chemicals due to lower crop prices.
Speaker #3: South and West India saw sharp demand declines while East and North remained stable. Indian farmers delayed purchases due to significantly extended rainfall and weaker commodity realizations.
Speaker #3: Lower farm incomes reduced spending on crop production products impacting domestic sales. Further, I am happy to share that we have commercialized the second product from Dahesh plant in Q3 FY26.
Speaker #3: We are working for making Dahesh operations a beta positive in FY27 and try to reach 80% capacity utilization of the existing plant. Also, we are in the final stages of working for the business plan for MPP2 and will be concluding the same within this year.
Speaker #3: Now, moving on to the financial performance for the last quarter, our revenue from operations stood at Rs. 409.92 crores in Q3 FY25-26 versus Rs.
Speaker #3: Revenue stood at ₹445.27 crore in Q3 FY24-25. EBITDA stood at ₹58.66 crore in Q3 FY25-26 versus ₹75.56 crore in Q3 FY24-25. Profit after tax stood at ₹...
Speaker #3: Rs. 40 crore in FY25-26 versus Rs. 55.04 crore in Q3 of FY25-26, with two straight negative quarters, has been a blemish on an otherwise decent performance from Dhanuka.
Speaker #3: Over the years, I can assure the stakeholders that the bad phases are over now, and in the future, it is going to be good only.
Speaker #3: I would like to assure our shareholders and our stakeholders that our strategy is well laid out, with continuous extension in rural market penetration, new product introduction, technical manufacturing, and international market expansion.
Speaker #3: We are confident on delivering our long-term objective of achieving double-digit CAGR. Zone-wise percentage share of turnover for Q3 FY25-26, North India 25%, East India 11%, West India 30%, and South India 34%.
Speaker #3: Product category-wise percentage share of turnover for Q3 FY25-26, insecticides 28%, fungicides 21%, herbicides 37%, others 14%. Dhanuka considers itself responsible towards securing the farmers' welfare and preserving food security of the nation.
Speaker #3: We continue to strengthen our association with the agriculture universities Krishi Vigyan Kend and other critical institutions to impart knowledge and latest technology to the farmers.
Speaker #3: Thank you very much for your kind attention. And now, we would like to open the forum to take the questions. Thank you.
Operator: Thank you very much. We will now begin the question answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prashant Biyani from Elara Securities. Please go ahead.
Speaker #3: you. Thank you very much.
Speaker #2: We will now begin the question-and-answer session. Anyone who wishes to ask a question may press * and 1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press * and 2.
Speaker #2: Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Prashant Biyani from Elara Securities.
Prashant Biyani: Thank you for the opportunity. Sir, how is the current demand scenario for agrochemicals?
Speaker #2: Please go ahead. Thank you for the—
Speaker #3: opportunity. Sir, how is the current demand scenario for agrochemicals? While we understand Q3 was weak, but how is Q4 doing and what is your expectation from Qarif
Operator: Right, so Q4 has really started well. January has done well for us. South Indian paddy, East India paddy is looking really good. Wheat crop has been good and the relevant consumption of wheat herbicide has happened extending from late Q3 to early Q4. So all that is looking bright. We are looking at a good harvest of rabi and then getting in a good kharif. Right now, it will be too early to kind of indicate anything for the upcoming kharif. We would still be waiting for weather forecast coming in late March and early April before we really form up our kharif plans. Right, and sir, out of the total top line, how much is the contribution from technical sales and revenue from the molecule of Bayer that we had bought, both in Q3 as well as 9 months?
[Translator]: Right, so Q4 has really started well. January has done well for us. South Indian paddy, East India paddy is looking really good. Wheat crop has been good and the relevant consumption of wheat herbicide has happened extending from late Q3 to early Q4. So all that is looking bright. We are looking at a good harvest of rabi and then getting in a good kharif. Right now, it will be too early to kind of indicate anything for the upcoming kharif. We would still be waiting for weather forecast coming in late March and early April before we really form up our kharif plans.
Speaker #4: Q4 has really started well. January has done well for us. South Indian paddy and East India paddy are looking really good. Wheat crop has been good, and the relevant consumption of wheat herbicide has happened, extending from late Q3 to early Q4.
Speaker #4: So all that is looking bright. We are looking into a good harvest of rabi and then getting into a be too early to the upcoming Qarif.
Speaker #4: We would still be waiting for weather forecast coming in late March and early April before we really firm up our Qarif plans.
Prashant Biyani: Right, and sir, out of the total top line, how much is the contribution from technical sales and revenue from the molecule of Bayer that we had bought, both in Q3 as well as 9 months?
Speaker #3: Right. And sir, out of the total top line, how much is the contribution from technical sales and revenue from the molecules of Bayer that we had bought, both in Q3 as well as nine?
Speaker #3: months? You see, revenue
Operator: यू सी, रेवेन्यू फ्रॉम बायर मॉलिक्यूल इन दी बैलेंस शीट ऑफ धानुका इस अराउंड INR 25 तू 27 करोड़। राइट, राइट। एंड विद रिगार्ड तू सेकंड पार्ट ऑफ योर क्वेश्चन, विद रिगार्ड तू टेक्निकल सेल्स, इस इस अराउंड INR 50 करोड़। सर, आई प्रिज्यूम दिस विल बी फॉर 9 मंथ्स। फॉर दी क्वार्टर, हो मच इस इट? सी, टेक्निकल सेल इस नॉट मच इन क्वार्टर थ्री। इस इस हार्डली अराउंड INR 34 करोड़। एंड विद रिगार्ड तू दिस बायर प्रोडक्ट, दिस वास मेजर इन Q3। हो या सर, दिस INR 25 तू 27 करोड़ इस ऑल टॉप लाइन और सम ऑफ इट इस नेट इकोनॉमिक बेनिफिट एज वेल। नो, इट इस दी टॉप लाइन। नेट इकोनॉमिक बेनिफिट इस सेपरेट। ओके, विच इस अराउंड INR 6 करोड़ इन क्वार्टर थ्री एंड ओवरऑल इस अराउंड INR 19.5 करोड़ इन 9 मंथ्स। सर, फ्रॉम हियर ऑन, दी नेट इकोनॉमिक बेनिफिट विल कंटिन्यू तू फ्लो या इट विल स्टॉप?
Vinod Kumar Bansal: यू सी, रेवेन्यू फ्रॉम बायर मॉलिक्यूल इन दी बैलेंस शीट ऑफ धानुका इस अराउंड INR 25 तू 27 करोड़। राइट, राइट। एंड विद रिगार्ड तू सेकंड पार्ट ऑफ योर क्वेश्चन, विद रिगार्ड तू टेक्निकल सेल्स, इस इस अराउंड INR 50 करोड़। सर, आई प्रिज्यूम दिस विल बी फॉर 9 मंथ्स। फॉर दी क्वार्टर, हो मच इस इट? सी, टेक्निकल सेल इस नॉट मच इन क्वार्टर थ्री। इस इस हार्डली अराउंड INR 34 करोड़। एंड विद रिगार्ड तू दिस बायर प्रोडक्ट, दिस वास मेजर इन Q3। हो या सर, दिस INR 25 तू 27 करोड़ इस ऑल टॉप लाइन और सम ऑफ इट इस नेट इकोनॉमिक बेनिफिट एज वेल। नो, इट इस दी टॉप लाइन। नेट इकोनॉमिक बेनिफिट इस सेपरेट। ओके, विच इस अराउंड INR 6 करोड़ इन क्वार्टर थ्री एंड ओवरऑल इस अराउंड INR 19.5 करोड़ इन 9 मंथ्स। सर, फ्रॉम हियर ऑन, दी नेट इकोनॉमिक बेनिफिट विल कंटिन्यू तू फ्लो या इट विल स्टॉप?
Speaker #4: from buyer molecule in the balance sheet of Dhanuka is around 25 to 27 crores. Right? And with
Speaker #3: Right.
Speaker #4: regard to second part of your question, with regard to technical sales, it is around 50 CR?
Speaker #3: Sir, I presume this will be for nine months for the quarter. How much is
Speaker #3: it? You see, in
Speaker #4: technical sale, it is not much in quarter three. It is hardly around three, four crores. And with regard to this buyer product, this was a major in Q3.
Speaker #4: Yeah.
Speaker #3: Sir, this ₹25 to ₹27 crores—is this all top line, or is some of it net economic benefit as well?
Speaker #3: well? No, it is the top
Speaker #4: Line. Net economic benefit is separate, which is around—
Speaker #3: Okay.
Speaker #4: 6 CR in quarter three and overall is around 19.5 CR in nine months.
Speaker #3: And sir, from here on, the net economic benefit will continue to flow, or it will
Speaker #3: stop? No, it will
Operator: नहीं, यह निश्चित रूप से रुक जाएगा। आंदोलन पूरा नियंत्रण ले लेगा। शुद्ध आर्थिक लाभ निश्चित रूप से बंद हो जाएगा। तो अगले वित्तीय वर्ष से, जो FY27 है, कुछ निर्यात बिक्री हमारी बैलेंस शीट में दिखाई देना शुरू हो जाएगी। और वित्तीय वर्ष के अंत तक, मुझे लगता है कि हम समग्र राजस्व को नियंत्रित कर रहे होंगे। जिसका मतलब है, जिसका मतलब है कि वर्ष FY28 में, कोई शुद्ध लाभ नहीं होना चाहिए। लेकिन हां, अगले वित्तीय वर्ष में, शुद्ध आर्थिक लाभ होगा, लेकिन वर्तमान वर्ष की तुलना में काफी कम। ठीक है, तो सर, अगले साल, तकनीकी के साथ-साथ बायर के इन दो अणुओं से क्या योगदान हो सकता है? डॉलर बैलेंस शीट में?
Vinod Kumar Bansal: नहीं, यह निश्चित रूप से रुक जाएगा। आंदोलन पूरा नियंत्रण ले लेगा। शुद्ध आर्थिक लाभ निश्चित रूप से बंद हो जाएगा। तो अगले वित्तीय वर्ष से, जो FY27 है, कुछ निर्यात बिक्री हमारी बैलेंस शीट में दिखाई देना शुरू हो जाएगी। और वित्तीय वर्ष के अंत तक, मुझे लगता है कि हम समग्र राजस्व को नियंत्रित कर रहे होंगे। जिसका मतलब है, जिसका मतलब है कि वर्ष FY28 में, कोई शुद्ध लाभ नहीं होना चाहिए। लेकिन हां, अगले वित्तीय वर्ष में, शुद्ध आर्थिक लाभ होगा, लेकिन वर्तमान वर्ष की तुलना में काफी कम। ठीक है, तो सर, अगले साल, तकनीकी के साथ-साथ बायर के इन दो अणुओं से क्या योगदान हो सकता है? डॉलर बैलेंस शीट में?
Speaker #4: Definitely stop. The movement will take the entire control. The net economic benefit will definitely discontinue. So from the next financial year, which is FY27, some of the export sales will start appearing in our balance sheet.
Speaker #4: And by the end of the financial year, I think we'll be controlling the overall revenue. Which means in the year FY28, there should not be any net economic benefit.
Speaker #4: But yes, in the next financial year, net economic benefit would be there, but significantly lower than the current year.
Speaker #3: Right. And sir, next year, what could be the contribution from technicals as well as these two molecules of Bayer?
Speaker #4: I think all balance sheet? So you see, that
Speaker #3: Yes.
Operator: Yes. So you see, that data is under process. We see, the team is working with regard to the export cell. So it is little difficult to estimate. I think the progress is on. We will be able to assess in a better way by the end of the March. Even for technicals? Technical cell would be sort of in line with this current year. Maybe 10-20% growth. Okay, and sir, how much is the current cash on books? Current cash on books? Cash on cash? Cash and liquid investment? Is more than ₹250 crore. Okay, and sir, just lastly, how much was the sale from biologicals in FY25 and how much was it for 9 months 26?
Operator: Yes. So you see, that data is under process. We see, the team is working with regard to the export cell. So it is little difficult to estimate. I think the progress is on. We will be able to assess in a better way by the end of the March. Even for technicals? Technical cell would be sort of in line with this current year. Maybe 10-20% growth.
Speaker #4: It is under process. We see the team is working with regard to the export sale, so it is a little difficult to estimate. I think the progress is on.
Speaker #4: We will be able to assess in a better way by the end of March.
Speaker #3: Even for
Speaker #4: Technical sale would be sort of in line with this current year, maybe 10, 20 percent growth.
Speaker #3: Okay. And sir, how much is the current cash on books?
Prashant Biyani: Okay, and sir, how much is the current cash on books? Current cash on books? Cash on cash? Cash and liquid investment? Is more than ₹250 crore. Okay, and sir, just lastly, how much was the sale from biologicals in FY25 and how much was it for 9 months 26?
Speaker #3: Cash on books.
Speaker #4: Cash on books. Cash.
Speaker #3: Cash and liquid
Speaker #3: investment? It's
Speaker #4: more than 250 CR.
Speaker #3: Okay. And sir, just lastly, how much was the sale from biologicals in FY25, and how much was it for nine months '26?
Speaker #4: So, see, biological was almost negligible in '26, and in '25, it was less than ₹2 crore.
Operator: अब तो सी बायोलॉजिकल ऑलमोस्ट नेगलिजिबल इन 26 एंड इन 25, इट वास लेस दैन INR 2 करोड़। ओके, ओके सर। थैंक यू सो मच फॉर योर टाइम। थैंक यू। थैंक यू। दी नेक्स्ट क्वेश्चन इस फ्रॉम दी लाइन ऑफ सौरभ जैन फ्रॉम HSBC। प्लीज गो अहेड। थैंक यू फॉर दी अपॉर्चुनिटी। विल इट बी पॉसिबल तू काइंड ऑफ इंडिकेट और क्वांटिफाई व्हाट कुड बी दी इंपैक्ट, नेगेटिव इंपैक्ट ऑफ सेल्स रिटर्न्स फॉर यू इन दिस क्वार्टर एंड सेम नंबर से लास्ट ईयर?
Harsh Dhanuka: अब तो सी बायोलॉजिकल ऑलमोस्ट नेगलिजिबल इन 26 एंड इन 25, इट वास लेस दैन INR 2 करोड़। ओके, ओके सर। थैंक यू सो मच फॉर योर टाइम। थैंक यू। थैंक यू। दी नेक्स्ट क्वेश्चन इस फ्रॉम दी लाइन ऑफ सौरभ जैन फ्रॉम HSBC। प्लीज गो अहेड। थैंक यू फॉर दी अपॉर्चुनिटी। विल इट बी पॉसिबल तू काइंड ऑफ इंडिकेट और क्वांटिफाई व्हाट कुड बी दी इंपैक्ट, नेगेटिव इंपैक्ट ऑफ सेल्स रिटर्न्स फॉर यू इन दिस क्वार्टर एंड सेम नंबर से लास्ट ईयर?
Speaker #3: Okay. Okay, sir. Thank you so much
Speaker #4: Thank
Speaker #2: ahead.
Speaker #3: Oh, thank you for the
Speaker #3: Opportunity. Will it be possible to kind of indicate or quantify what could be the impact—negative impact—of sales returns for you in this quarter?
Speaker #3: And same number, say, last year.
Speaker #4: You see, sales return, this year, is almost equal to last year, but slightly lower than by 2 crores. This in Q3 as compared to the Q3 of the previous
Speaker #4: You see, sales return, this year, is almost equal to last year, but slightly lower than by 2 crores. This in Q3 as compared to the Q3 of the previous year.
Operator: यूसी, सेल्स रिटर्न दिस ईयर इज़ ऑलमोस्ट इक्वल टू दी लास्ट ईयर, बट स्लाइटली लोअर दैन बाय ₹2 करोड़ दिस इन Q3 एज़ कंपेयर्ड टू दी Q3 ऑफ़ दी प्रीवियस ईयर। ओके, सो सेल्स रिटर्न्स हैव नॉट रियली काइंड ऑफ़ इंक्रीज़्ड फॉर यू इन दिस क्वार्टर एंड इन दिस क्वार्टर। यस, दैट्स व्हाई। ओके, अंडरस्टुड। एंड करेक्ट मी, बायोलॉजिक, यू आर सेइंग देयर इज़ नो कंट्रिब्यूशन फॉर यू इन दिस क्वार्टर। आई एम अ बिट कंफ्यूज़्ड ऑन दी बायोलॉजिक साइड। आई थॉट इट कंट्रिब्यूट्स ऑलमोस्ट 9% टू 10% ऑफ़ योर रेवेन्यू। बायोलॉजिकल्स, नो। वन इज़ दी कैटेगरी PGR कैटेगरी। बायोलॉजिकल इज़ बाय स्टिमुलेंट और यू आर सेइंग बायोलॉजिकल? नो, आई मीन दी प्रोडक्ट्स विच आर अंडर यू नो रेगुलेटरी चैलेंज। व्हाट इज़ दैट कंट्रिब्यूशन?
Harsh Dhanuka: यूसी, सेल्स रिटर्न दिस ईयर इज़ ऑलमोस्ट इक्वल टू दी लास्ट ईयर, बट स्लाइटली लोअर दैन बाय ₹2 करोड़ दिस इन Q3 एज़ कंपेयर्ड टू दी Q3 ऑफ़ दी प्रीवियस ईयर। ओके, सो सेल्स रिटर्न्स हैव नॉट रियली काइंड ऑफ़ इंक्रीज़्ड फॉर यू इन दिस क्वार्टर एंड इन दिस क्वार्टर। यस, दैट्स व्हाई। ओके, अंडरस्टुड। एंड करेक्ट मी, बायोलॉजिक, यू आर सेइंग देयर इज़ नो कंट्रिब्यूशन फॉर यू इन दिस क्वार्टर। आई एम अ बिट कंफ्यूज़्ड ऑन दी बायोलॉजिक साइड। आई थॉट इट कंट्रिब्यूट्स ऑलमोस्ट 9% टू 10% ऑफ़ योर रेवेन्यू। बायोलॉजिकल्स, नो। वन इज़ दी कैटेगरी PGR कैटेगरी। बायोलॉजिकल इज़ बाय स्टिमुलेंट और यू आर सेइंग बायोलॉजिकल? नो, आई मीन दी प्रोडक्ट्स विच आर अंडर यू नो रेगुलेटरी चैलेंज। व्हाट इज़ दैट कंट्रिब्यूशन?
Speaker #3: Okay. So, sales returns have not really kind of increased.
Speaker #3: for you in this quarter. And in this
Speaker #4: quarter, yes, that's right.
Speaker #3: Okay. Understood. And correct me, biologics, you're saying there is no contribution for you in this quarter? I'm a bit confused on the biologics side.
Speaker #3: Almost 9 to 10 percent of your— I thought it contributes.
Speaker #3: revenue.
Speaker #4: Biologicals, no. One is Biological is the category PGR category. biostimulant, or you are saying biological?
Speaker #3: No, I mean the products which are under regulatory challenges. What is that?
Speaker #4: Product under regulatory challenges in this category—we were having a contribution of around 19%, but this year, the impact in our Q3 is around ₹15 crores, and nine months is an impact of ₹49 crores, on account of the IC4 product biostimulant being disturbed.
Operator: प्रोडक्ट अंडर रेगुलेटरी चेंज इन दिस कैटेगरी, वी वर हैविंग ए कंट्रिब्यूशन ऑफ अराउंड 19%। बट दिस ईयर, दी इंपैक्ट इन अवर Q3 इस अराउंड INR 15 करोड़ एंड 9 मंथ इस दी इंपैक्ट ऑफ INR 49 करोड़ ऑन अकाउंट ऑफ दी फोर प्रोडक्ट बाय स्टिमुलेंट स्टॉप सेल, बेसिकली। ओके, सो यू लॉस्ट INR 50 करोड़ ऑफ सेल्स ऑन दी 9 मंथ बेसिस बिकॉज ऑफ दीज रेगुलेटरी चैलेंज। यस, दैट्स राइट। दैट्स राइट। हाउ मच ऑफ इट इस नॉर्मलाइज्ड नाउ एंड व्हाट शुड वी एक्सपेक्ट ऑन दिस साइड इन दी फ्यूचर ऑन दी रेगुलेटरी इश्यूज?
Harsh Dhanuka: प्रोडक्ट अंडर रेगुलेटरी चेंज इन दिस कैटेगरी, वी वर हैविंग ए कंट्रिब्यूशन ऑफ अराउंड 19%। बट दिस ईयर, दी इंपैक्ट इन अवर Q3 इस अराउंड INR 15 करोड़ एंड 9 मंथ इस दी इंपैक्ट ऑफ INR 49 करोड़ ऑन अकाउंट ऑफ दी फोर प्रोडक्ट बाय स्टिमुलेंट स्टॉप सेल, बेसिकली। ओके, सो यू लॉस्ट INR 50 करोड़ ऑफ सेल्स ऑन दी 9 मंथ बेसिस बिकॉज ऑफ दीज रेगुलेटरी चैलेंज। यस, दैट्स राइट। दैट्स राइट। हाउ मच ऑफ इट इस नॉर्मलाइज्ड नाउ एंड व्हाट शुड वी एक्सपेक्ट ऑन दिस साइड इन दी फ्यूचर ऑन दी रेगुलेटरी इश्यूज?
Speaker #3: Okay.
Speaker #3: So you say, basically, lost ₹50 crores of sales on the nine-month basis because of these regulatory—
Speaker #3: challenges? That's right.
Speaker #4: That's right.
Speaker #3: And how much of it is normalized now, and what should we expect on this side in the future on the regulatory front?
Speaker #3: issues? So
Operator: So the regulatory framework is in place, which is really good for the organized players like Dhanuka. So our products are under testing and approval stage. We are quite hopeful that we will be receiving our approvals by end of this quarter and will be up and running with fresh set of biological offerings, bio stimulants offering in the new regulated regime in Q1 of next year. But are you confident that you will be able to get speedy approval so that kind of kicks off for you in the first quarter? I am trying to get a sense how much of business has already normalized and you know what can be the expectations for FY27 on that side?
[Translator]: So the regulatory framework is in place, which is really good for the organized players like Dhanuka. So our products are under testing and approval stage. We are quite hopeful that we will be receiving our approvals by end of this quarter and will be up and running with fresh set of biological offerings, bio stimulants offering in the new regulated regime in Q1 of next year. But are you confident that you will be able to get speedy approval so that kind of kicks off for you in the first quarter? I am trying to get a sense how much of business has already normalized and you know what can be the expectations for FY27 on that side?
Speaker #4: The regulatory framework is in place, which is really good for the organized players like Dhanuka. So our products are under testing and approval stage; we are quite hopeful that we'll be receiving our approvals by the end of this quarter.
Speaker #4: And we'll be up and running with a fresh set of biological offerings, biostimulants offering in the new regulated regime in Q1 of next—
Speaker #4: year. But are you confident that you will be able
Speaker #3: To get speedy approvals, so that kind of kicks off for you in the first, has already normalized, and what can be the expectations for FY27 on that side?
Speaker #4: When you say how much of business has already normalized, I don't get that. But yes, we are tracking our approvals, and we are hopeful of getting at least three product approvals by Q1 in this quarter, so that we can launch ending.
Operator: When you say how much of business is already normalized, I don't get that. But yes, we are tracking our approvals and we are hopeful of getting out of our, you know, at least three products approval in this quarter so that we can launch by Q1 ending. Okay, understood. So expecting that almost three out of four molecule, you will be expecting it to normalize in first quarter onwards. Correct? Yes. Okay, understood. Thanks. And also, I wanted to seek your comments around the recent change in the China policy when they ending export rebates on some of the technicals of the generic molecule. So what would be your view on that side? Does it make an problem for players like Dhanuka because some of our purchase are linked to China? How are you strategizing to kind of handle this issue in industry?
[Translator]: When you say how much of business is already normalized, I don't get that. But yes, we are tracking our approvals and we are hopeful of getting out of our, you know, at least three products approval in this quarter so that we can launch by Q1 ending.
Speaker #3: Okay. Understood. So expecting that almost three out of four molecules, you will be expecting it to normalize in first quarter
Prashant Biyani: Okay, understood. So expecting that almost three out of four molecule, you will be expecting it to normalize in first quarter onwards. Correct?
Speaker #3: Onwards. Correct? Okay. Yes. Understood. Thanks. And also, I wanted to seek your comments around the recent changes in the China policy when they're ending export rebates on some of the technicals of the generic molecules.
Rahul Dhanuka: Yes.
Prashant Biyani: Okay, understood. Thanks. And also, I wanted to seek your comments around the recent change in the China policy when they ending export rebates on some of the technicals of the generic molecule. So what would be your view on that side? Does it make an problem for players like Dhanuka because some of our purchase are linked to China? How are you strategizing to kind of handle this issue in industry?
Speaker #3: So, what would be your view on that side? Does it make a problem for players like Dhanuka because some of our purchases are linked to China?
Speaker #3: How are you strategizing to kind of handle this issue in the
Speaker #3: industry? The question is,
Operator: Good question है। So you see, this is China internal approach। This will certainly increase the price of some of the commodities for which export rebates have been reduced। Since it is an industry wide phenomena, it will not significantly impact either our sourcing और our competitive edge in the market। I don't see any material impact on our sourcing out here। Okay, so you would assume that industry will be able to pass on the size in India because I thought it become difficult और challenging to pass on the high prices। And if it happens, it happens with the lag। So I will not comment about the industry here at Dhanuka। We kind of significantly follow this practice of passing on the increased cost as much as possible downstream। We have mostly done it almost all the past years in quarters और we are pretty hopeful we will be able to do that। Okay, possible to also tell us what is the revenue exposure that you would be having, which is linked to some of these products?
Rahul Dhanuka: Good question है। So you see, this is China internal approach। This will certainly increase the price of some of the commodities for which export rebates have been reduced। Since it is an industry wide phenomena, it will not significantly impact either our sourcing और our competitive edge in the market। I don't see any material impact on our sourcing out here। Okay, so you would assume that industry will be able to pass on the size in India because I thought it become difficult और challenging to pass on the high prices। And if it happens, it happens with the lag। So I will not comment about the industry here at Dhanuka। We kind of significantly follow this practice of passing on the increased cost as much as possible downstream। We have mostly done it almost all the past years in quarters और we are pretty hopeful we will be able to do that। Okay, possible to also tell us what is the revenue exposure that you would be having, which is linked to some of these products?
Speaker #4: So you see, this is China's internal approach. This will certainly increase the price of some of the commodities for which export rebates have been reduced.
Speaker #4: industry-wide phenomenon, it will not Since it is an significantly impact either our sourcing or our competitive edge in the market. I don't see any material impact on our sourcing out here.
Speaker #3: Okay, so you would assume that the industry will be able to pass on these hikes in India, because I thought it becomes difficult and challenging to pass on the high prices.
Speaker #3: And if it happens, it happens with a
Speaker #3: lag. So I will not comment about the
Speaker #4: Dhanuka, we kind of significantly, as an industry here, follow this practice of passing on the increased cost as much as possible downstream. We have mostly done it almost all past years and quarters, and we are pretty hopeful we'll be able to do
Speaker #4: that. Okay.
Speaker #3: Is it possible for you to also tell us what the revenue exposure would be that is linked to some of these products?
Speaker #4: Actually, most of these products—glufosinate—we are already buying from India. We are not sourcing from China. Glyphosate, or the export benefit, was already removed in the past year.
Operator: Actually, most of these products, glufosinate, we are already buying from India. We are not sourcing from China. Glyphosate, the export benefit was already removed in the past year. So there will be no impact. And the other products are not confirmed, which will have an impact. Okay, sure. Thanks. I will get back in the queue. Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question is from the line of Resume Dalai from Antique Stock Broking. Please go ahead. Hi sir. A question in terms of, when you said debt bear, bear income from the bear about INR 6 crores for this quarter. So this is mainly the royalty income that you have mentioned, the INR 6 crores?
Operator: Actually, most of these products, glufosinate, we are already buying from India. We are not sourcing from China. Glyphosate, the export benefit was already removed in the past year. So there will be no impact. And the other products are not confirmed, which will have an impact. Okay, sure. Thanks. I will get back in the queue. Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question is from the line of Resume Dalai from Antique Stock Broking. Please go ahead. Hi sir. A question in terms of, when you said debt bear, bear income from the bear about INR 6 crores for this quarter. So this is mainly the royalty income that you have mentioned, the INR 6 crores?
Speaker #4: So there will be no impact, and the other products are not confirmed, which will have an impact.
Speaker #3: in the queue.
Speaker #2: if you wish to ask a question, you may press star and one. The next question is from the line of Rajiv Dalai from Antiques Stock Broking.
Speaker #2: Please go ahead.
Speaker #4: sir. Through clarification in terms of Hi, when you said that there are income from the bayad, about 6 crores for this quarter. So this is mainly the royalty income that you have mentioned?
Speaker #4: The 6 crores? It is not royalty. It is net economic benefit. It's like royalty, not the royalty, actually.
Operator: It is not royalty. It is net economic benefit. It's like royalty, not the royalty actually. Understood. Understood. And the sales of the revenue that you have mentioned this year, maybe for the 9 months, ₹25-27 crore. So this is like earlier you have indicated that the majority part of the revenue came from the domestic market. So is it still the domestic market contributing this revenue from the bear product, ₹25-27 crore? And some part of this product, this revenue came from outside of India? No, no. It is from India only. Okay. And the reason transfer for the overseas market. So when you can expect that and how is the timeline that are moving?
Operator: It is not royalty. It is net economic benefit. It's like royalty, not the royalty actually. Understood. Understood. And the sales of the revenue that you have mentioned this year, maybe for the 9 months, ₹25-27 crore. So this is like earlier you have indicated that the majority part of the revenue came from the domestic market. So is it still the domestic market contributing this revenue from the bear product, ₹25-27 crore? And some part of this product, this revenue came from outside of India? No, no. It is from India only. Okay. And the reason transfer for the overseas market. So when you can expect that and how is the timeline that are moving?
Speaker #3: Understood.
Speaker #4: And Understood.
Speaker #4: The sales of the revenue that you have mentioned this year may be for the nine months, ₹25–27 crores. So, earlier, you had indicated that the majority part of the revenue came from the domestic market.
Speaker #4: So, is it still the domestic market contributing this revenue from the Bayad product—₹25, ₹27 crore—or did some part of this revenue come from the...
Speaker #4: outside of India? No, no.
Speaker #3: It is from India only.
Speaker #4: Transfer for the overseas market, so okay. And the recent—when you can expect that, and how is the timeline for that moving? It is in process for various countries.
Operator: It is in process for various countries and many of the applications are in process. So in '27, sorry, in '26, we will see a lot of transfers happening. And even without the registration transfer, the sales will begin once the distribution appointment gets completed and the sales moves to the distributors, Dhanuka distributors. Understood. So for the overseas business, we can expect the transfer and the revenue under Dhanuka book might happen from the Q1 and Q2 of '27, right?
Operator: It is in process for various countries and many of the applications are in process. So in '27, sorry, in '26, we will see a lot of transfers happening. And even without the registration transfer, the sales will begin once the distribution appointment gets completed and the sales moves to the distributors, Dhanuka distributors. Understood. So for the overseas business, we can expect the transfer and the revenue under Dhanuka book might happen from the Q1 and Q2 of '27, right?
Speaker #4: And many of the applications are in process. So in '27—sorry, in '26—we will see a lot of transfers happening. And even without the registration transfer, the sales will begin once the distribution appointment gets completed and the sales move to the distributors.
Speaker #4: Dhanuka distributors.
Speaker #3: Understood. So for the overseas business, we can expect revenue under Dhanuka's book might transfer or happen from Q1 or Q2 of '27, right?
Speaker #4: Yeah. Q1,
Operator: यह Q1, सुरली। अंडरस्टुड। एंड इन टर्म्स ऑफ दी गाइडेंस, इफ आई लुक एट योर 9 मंथ नंबर्स एंड लाइक यू हैव मेंशन इन दी PPT डेट दी लाइक सी हैव मेंटेन दी गाइडेंस व्हाट सी हैव अर्लियर कम्युनिकेटेड। सो इफ यू लुक एट इन टर्म्स ऑफ रन रेट, सो आर मार्जिंस इन टर्म्स ऑफ EBITDA इस अप्रोच 18% एज ऑफ 9 मंथ। एंड इफ आई लुक एट लास्ट ईयर Q4 नंबर्स, सो देयर वर वन ऑफ इंपैक्ट ऑफ दी बेनिफिट डेट सी हैव गॉट फ्रॉम आर जपनीज पार्टनर। सो डिस्पाइट डेट सी आर एक्सपेक्टिंग डेट आर मार्जिंस तू बी 100 बीपीएस डिक्लाइन फ्रॉम दी लास्ट ईयर लेवल। सो हाउ आर यू कॉन्फिडेंट ऑफ मेकिंग लाइक 24-25% काइंड ऑफ EBITDA मार्जिन इन Q4?
Operator: यह Q1, सुरली। अंडरस्टुड। एंड इन टर्म्स ऑफ दी गाइडेंस, इफ आई लुक एट योर 9 मंथ नंबर्स एंड लाइक यू हैव मेंशन इन दी PPT डेट दी लाइक सी हैव मेंटेन दी गाइडेंस व्हाट सी हैव अर्लियर कम्युनिकेटेड। सो इफ यू लुक एट इन टर्म्स ऑफ रन रेट, सो आर मार्जिंस इन टर्म्स ऑफ EBITDA इस अप्रोच 18% एज ऑफ 9 मंथ। एंड इफ आई लुक एट लास्ट ईयर Q4 नंबर्स, सो देयर वर वन ऑफ इंपैक्ट ऑफ दी बेनिफिट डेट सी हैव गॉट फ्रॉम आर जपनीज पार्टनर। सो डिस्पाइट डेट सी आर एक्सपेक्टिंग डेट आर मार्जिंस तू बी 100 बीपीएस डिक्लाइन फ्रॉम दी लास्ट ईयर लेवल। सो हाउ आर यू कॉन्फिडेंट ऑफ मेकिंग लाइक 24-25% काइंड ऑफ EBITDA मार्जिन इन Q4?
Speaker #4: surely. Understood.
Speaker #3: And in terms of the guidance, if I look at your nine-month numbers and you have mentioned in the PPT that the we have maintained the guidance, what we have earlier communicated.
Speaker #3: we look at in terms of run rate, So if so our margins in terms of EBITDA is roughly around 18% as of nine months.
Speaker #3: And if I look at last year's Q4 numbers, there was a one-off impact from the benefit that we got from our Japanese or some partners.
Speaker #3: So despite that, we are expecting that our margins will be 100 bps declined from last year's level. So how are you confident of making 24–25% kind of EBITDA margin in
Speaker #3: 4Q? So you see, we
Operator: तो यू सी, सी आर वेरी मच कॉन्फिडेंट इन टर्म्स ऑफ दी EBIT। अवर EBIT विल बी नेगेटिव इन लाइन विद दी 9 मंथ। इन 9 मंथ, अवर EBIT नेगेटिव इस बाय 113 बेसिस पॉइंट। इन ओवरऑल एनुअल बेसिस, सी आर एक्सपेक्टिंग दी सिमिलर डिक्लाइन 100-210 बेसिस पॉइंट। अंडरस्टुड। एंड सर, इन टर्म्स ऑफ न्यू प्रोडक्ट लॉन्चेस फार, हो मेनी प्रोडक्ट सी हैव लॉन्च्ड इन दी 9 मंथ पीरियड? 9 मंथ पीरियड, सी लॉन्च्ड वन इस दिनकर और दी मॉलिक्यूल। एंड वन इस बर्डर। एंड वन इस बर्डर, थ्री। ओके। थ्री, सी हैव लॉन्च्ड, राइट?
Operator: तो यू सी, सी आर वेरी मच कॉन्फिडेंट इन टर्म्स ऑफ दी EBIT। अवर EBIT विल बी नेगेटिव इन लाइन विद दी 9 मंथ। इन 9 मंथ, अवर EBIT नेगेटिव इस बाय 113 बेसिस पॉइंट। इन ओवरऑल एनुअल बेसिस, सी आर एक्सपेक्टिंग दी सिमिलर डिक्लाइन 100-210 बेसिस पॉइंट। अंडरस्टुड। एंड सर, इन टर्म्स ऑफ न्यू प्रोडक्ट लॉन्चेस फार, हो मेनी प्रोडक्ट सी हैव लॉन्च्ड इन दी 9 मंथ पीरियड? 9 मंथ पीरियड, सी लॉन्च्ड वन इस दिनकर और दी मॉलिक्यूल। एंड वन इस बर्डर। एंड वन इस बर्डर, थ्री। ओके। थ्री, सी हैव लॉन्च्ड, राइट?
Speaker #4: We are very much confident in terms of the EBIT. Our EBIT will be negative, in line with the nine-month. Our EBIT negative is by 113 basis points.
Speaker #4: So, on an overall annual basis, we are expecting a similar decline of 100 to 110 basis points.
Speaker #3: Understood. And so in terms of new product launches, so far, so how many products we have launched in the nine-month period?
Speaker #4: Nine-month period, we launched one, Dinkar, on the molecule.
Speaker #4: And one, and one is Bador. Is Bador, three.
Speaker #3: Okay, so three we have launched, right? Okay, sir. Okay, thanks, sir. Thanks for clarifying all the...
Operator: ओके सर। ओके। थैंक्स सर। थैंक्स फॉर क्लेरिफाइंग ऑल दी क्वेश्चंस। थैंक यू। दी नेक्स्ट क्वेश्चन इस फ्रॉम दी लाइन ऑफ विराज कचार्य फ्रॉम सिंपल। प्लीज गो अहेड। या हाय सर। जस्ट कपल ऑफ क्वेश्चंस। फर्स्ट इस ऑन दी बायो स्टिमुलेंट। जस्ट टू अंडरस्टैंड, व्हाट इस दी की सीजन टाइम फॉर दिस पर्टिकुलर प्रोडक्ट? दी रीजन व्हाई आई एम आस्किंग इस इफ फॉर एनी रीजन, यू नो, देयर इस दी डिले इन अप्रूवल फ्रॉम दी गवर्नमेंट फॉर रजिस्ट्रेशन। इफ इन केस इट डजंट कम बाय Q1, इस देयर स्टिल अ पॉसिबिलिटी वी कैन मीट दी सेल्स और यू थिंक अ गुड पार्ट ऑफ दी सीजन विल बी लॉस्ट?
Operator: ओके सर। ओके। थैंक्स सर। थैंक्स फॉर क्लेरिफाइंग ऑल दी क्वेश्चंस। थैंक यू। दी नेक्स्ट क्वेश्चन इस फ्रॉम दी लाइन ऑफ विराज कचार्य फ्रॉम सिंपल। प्लीज गो अहेड। या हाय सर। जस्ट कपल ऑफ क्वेश्चंस। फर्स्ट इस ऑन दी बायो स्टिमुलेंट। जस्ट टू अंडरस्टैंड, व्हाट इस दी की सीजन टाइम फॉर दिस पर्टिकुलर प्रोडक्ट? दी रीजन व्हाई आई एम आस्किंग इस इफ फॉर एनी रीजन, यू नो, देयर इस दी डिले इन अप्रूवल फ्रॉम दी गवर्नमेंट फॉर रजिस्ट्रेशन। इफ इन केस इट डजंट कम बाय Q1, इस देयर स्टिल अ पॉसिबिलिटी वी कैन मीट दी सेल्स और यू थिंक अ गुड पार्ट ऑफ दी सीजन विल बी लॉस्ट?
Speaker #3: questions. Thank
Speaker #2: you. The next question is from the line of Viraj Kacharya from Simple. Please go
Speaker #2: ahead.
Speaker #5: Yeah.
Speaker #5: Sir, just a couple of questions. First is on the biostimulant. Just to understand, what is the key season time for this particular product? The reason why I'm asking is, if for any reason there's a delay in approval from the government for registration—so, if in case it doesn't come by Q1—is there still a possibility we can meet the sales, or do you think a good part of the season will be...
Speaker #5: lost? The
Speaker #4: peak consumption time coincides with our peak business opportunity which almost starts by June end, say early July, and goes on through late November. So mostly July to November is the peak consumption.
Operator: The peak consumption time coincides with our peak business opportunity, which almost starts by June and say early July and goes on through late November. So mostly July to November is the peak consumption. Another round comes up in March with sugarcane. Understood. Got it. And when you say bio stimulant, the total number of products, which you have in the portfolio, will be four as of today?
Operator: The peak consumption time coincides with our peak business opportunity, which almost starts by June and say early July and goes on through late November. So mostly July to November is the peak consumption. Another round comes up in March with sugarcane. Understood. Got it. And when you say bio stimulant, the total number of products, which you have in the portfolio, will be four as of today?
Speaker #4: In March, with another round, comes up sugarcane.
Speaker #5: Understood. Got it. And when you say biostimulant, the total number of products we would have in the portfolio would be four as of today?
Speaker #4: Yes. The ones regulated in the regulated environment were four. Out of which three will be coming through, and one would which is of animal origin and all that.
Operator: Yes. The ones regulated in the regulated environment were four, out of which three will be coming through. And one would, you know, which is of, you know, animal origin and all that. So that may not be coming through easily and not in near future. So the three would be an larger part of the sales loss, which we... As it is, the other three constituted more than 80% of our revenue. So that would be well placed. In addition to that, you would recall, we had already launched Micro Riser three four years back. And then we introduced Micro Riser Super also couple of years back, which is an good replacement of bio stimulants as far as farmers crop growth opportunity is concerned. And Dhanuka Micro Super brand has taken an good position in the market, filling up the vacuum created by absent of bio stimulants from Dhanuka own portfolio and of the competition as well. Understood. Second question was, sir, if you can give mix of in this EBITDA of B2B versus B2C?
Operator: Yes. The ones regulated in the regulated environment were four, out of which three will be coming through. And one would, you know, which is of, you know, animal origin and all that. So that may not be coming through easily and not in near future. So the three would be an larger part of the sales loss, which we... As it is, the other three constituted more than 80% of our revenue. So that would be well placed. In addition to that, you would recall, we had already launched Micro Riser three four years back. And then we introduced Micro Riser Super also couple of years back, which is an good replacement of bio stimulants as far as farmers crop growth opportunity is concerned. And Dhanuka Micro Super brand has taken an good position in the market, filling up the vacuum created by absent of bio stimulants from Dhanuka own portfolio and of the competition as well. Understood. Second question was, sir, if you can give mix of in this EBITDA of B2B versus B2C?
Speaker #4: So, that may not be coming through easily, or not in the near [future].
Speaker #4: future. So the
Speaker #5: Three would be the larger part of the sales. Loss, which we?
Speaker #4: Yes. The other three constituted more than 80% of our revenue, so that would be well placed. In addition to that, you would recall we had already launched Mycorrhiza four years back, and then we introduced Mycorrhiza Super also a couple of years back, which is a good replacement for biostimulants as far as farmers' crop growth opportunity is concerned.
Speaker #4: And Dhanuka's Mycor Super brand has taken a good share of the vacuum created by absence of biostimulants from Dhanuka's own portfolio and of the competition as well.
Speaker #5: Understood. The second question was, sir, if you can give a mix of in terms of EBITDA
Speaker #5: Of B2B versus position in the market, filling up.
Speaker #5: B2C?
Speaker #4: You
Speaker #4: see, B2B, of course, the EBITDA is significantly lower than
Operator: यू सी, बी टू बी, ऑफ कोर्स, दी EBITDA इस सिग्निफिकेंटली लोअर दैन बी टू सी। तो फॉर दी क्वार्टर गोन बाय, व्हाट विल बी दी EBITDA फॉर दी बेच बिजनेस? कैन यू रिपीट योर क्वेश्चन? फॉर दी क्वार्टर, विच इस गोन बाय, व्हाट विल बी दी EBITDA फॉर दी बेच B2B बिजनेस?
Operator: यू सी, बी टू बी, ऑफ कोर्स, दी EBITDA इस सिग्निफिकेंटली लोअर दैन बी टू सी। तो फॉर दी क्वार्टर गोन बाय, व्हाट विल बी दी EBITDA फॉर दी बेच बिजनेस? कैन यू रिपीट योर क्वेश्चन? फॉर दी क्वार्टर, विच इस गोन बाय, व्हाट विल बी दी EBITDA फॉर दी बेच B2B बिजनेस?
Speaker #5: So for
Speaker #5: the quarter going by, what will be the EBITDA for the bayage B2C. business?
Speaker #4: Can you repeat your question?
Speaker #5: For the quarter which is going by, what will be the EBITDA for the Bayage B2B?
Speaker #5: business?
Speaker #4: The HEC
Operator: The hedge is still negative. In Q3, it is around ₹4 crore as against the ₹5 crore as against last year ₹4 crore. Okay. Sir, this question on the hedge, I think last quarter, we mentioned that we are commissioning second product, you know, for supply to domestic. I think for supply to domestic market. We also having good utilization for the first product. But if I look at the revenue for the quarter, you know, for the batch, you know, it's hardly ₹4 crore as against the run rate, we, you know, in the earlier quarters. Generally, the environment is quite positive in the price and volume, both from export point of view as well, you know, for CPV exports. So what, you know, what is the reason why the sales are lower for the hedge?
Operator: The hedge is still negative. In Q3, it is around ₹4 crore as against the ₹5 crore as against last year ₹4 crore. Okay. Sir, this question on the hedge, I think last quarter, we mentioned that we are commissioning second product, you know, for supply to domestic. I think for supply to domestic market. We also having good utilization for the first product. But if I look at the revenue for the quarter, you know, for the batch, you know, it's hardly ₹4 crore as against the run rate, we, you know, in the earlier quarters. Generally, the environment is quite positive in the price and volume, both from export point of view as well, you know, for CPV exports. So what, you know, what is the reason why the sales are lower for the hedge?
Speaker #4: EBITDA is still negative. In Q3, it is around ₹4 crore as against ₹5 crore last year, ₹4 crore.
Speaker #5: Okay, so this question on bayage—I think last quarter we mentioned that we are commissioning the second product for supply to domestic, I think Amazon.
Speaker #5: For supply to domestic market, and we also are having a good utilization for the first product. look at the revenue for the But if I quarter for the bayage, it's hardly 4 CR.
Speaker #5: As against the run rate, we in the earlier quarters. Generally, the environment is quite positive in terms of price and volume, both from export point of view as well.
Speaker #5: For CPV exports, so what is the reason why the sales are lower for
Speaker #5: bayage? So
Operator: So Q3, in any case, is off season for both of these products. So Q3, we were expecting lower sales. That is one. Second, our Difen Conosol production got extended and went into November and December, which we were expecting to close in October and November. So that got delayed slightly. But now, it is completely online. And so starting Q4, Difen Conosol revenue will start coming in as per the plan. With respect to Biofenthrin, in any case, it was off season. Q1, we have started on a good note for Biofenthrin technical sales from the haze. So we are expecting that to continue in the future as well. Okay. So both these two products together going into next year, what kind of sales utilization we are looking at? And what is the capex for the MPP 2 plant?
Operator: So Q3, in any case, is off season for both of these products. So Q3, we were expecting lower sales. That is one. Second, our Difen Conosol production got extended and went into November and December, which we were expecting to close in October and November. So that got delayed slightly. But now, it is completely online. And so starting Q4, Difen Conosol revenue will start coming in as per the plan. With respect to Biofenthrin, in any case, it was off season. Q1, we have started on a good note for Biofenthrin technical sales from the haze. So we are expecting that to continue in the future as well. Okay. So both these two products together going into next year, what kind of sales utilization we are looking at? And what is the capex for the MPP 2 plant?
Speaker #4: Q3, in any case, is off-season for both of these products. So in Q3, we were expecting lower sales—that is definite. Connoisseur production got extended and went into November and December, which we were expecting to close in October and November.
Speaker #4: So that got delayed slightly, but now it is completely online, and so starting Q4, definite connoisseur revenues will start coming in as per the plan.
Speaker #4: With respect to biofencing, in any case, it was off-season. Q1, we have started on a good note. For biofencing technical sales from bayage. So we are expecting that to continue in the future as
Speaker #4: well.
Speaker #5: Okay. So both these two products
Speaker #5: Together, going into next year, what kind of sales utilization are we looking at? And what will be the capex for the MPP two plants?
Speaker #4: Yeah. Next year, FY 27, we are looking at a capacity utilization of close to 80% for these two, plus we'll be adding one more product in this plant that is Hypervalica.
Operator: Next year, FY 27, we are looking at a capacity utilization of close to 80% for these two. Plus, we will be adding one more product in this plant, that is Hypro Valley. So three products together, we are looking at 80% capacity utilization. And the MPP too, we are expecting a capex in the range of INR 60 to 70 crores. Okay. Got it. Last question. Sir, if I look at the B2C, you know, if I adjust for the sales addition from the bear products, you know, in the quarter, which is gone by, then for the de-growth for us, you know, is even higher, you know, in B2C. And if I look at the other players in the industry, we have not seen that kind of a de-growth. So just trying to understand, you know, where is, what is driving a low performance for us, you know, in any color you can give?
Operator: Next year, FY 27, we are looking at a capacity utilization of close to 80% for these two. Plus, we will be adding one more product in this plant, that is Hypro Valley. So three products together, we are looking at 80% capacity utilization. And the MPP too, we are expecting a capex in the range of INR 60 to 70 crores. Okay. Got it. Last question. Sir, if I look at the B2C, you know, if I adjust for the sales addition from the bear products, you know, in the quarter, which is gone by, then for the de-growth for us, you know, is even higher, you know, in B2C. And if I look at the other players in the industry, we have not seen that kind of a de-growth. So just trying to understand, you know, where is, what is driving a low performance for us, you know, in any color you can give?
Speaker #4: So, with three products together, we are looking at 80% capacity utilization. And for MPP two, we are expecting a capex in the range of ₹60 to ₹70 crore.
Speaker #5: Okay, got it. Last question, sir—if I look at the B2C, if I adjust for the sales addition from the products that are going to Bayer this quarter, then the degrowth for us is even higher in B2C.
Speaker #5: And if I look at the other players in the industry, we're not seeing that kind of a de-growth. So just trying to understand, what is driving a lower performance for us?
Speaker #5: In any color you can give.
Speaker #4: So one is, of course, the impact of the biostimulants in B2C segments, which has hit us hard in Q2 and Q3 business opportunity. Then also, last year, we had some really powerful NPI—new product introduction—for the chili segment.
Operator: So one is, of course, the impact of the biostimulants in B2C segments, which is hit as hard in Q2 and Q3 business opportunity. Then also, last year, we had some really powerful NPI new product introduction for chili segment. Chili has taken a major beating in this season down south. So the consumption has been significantly low, which is a very specialized segment, where farmer consumes only high value product. And that high value consumption has been hit hard. Third is, I think, at Dhanuka, we really optimize the channel inventory significantly faster than the industry standards. So we do not allow our channel partners to carry forward the inventory. We try and turn it around faster than what the industry averages would be. That could probably, you know, but this is an external factor, which I don't have a complete hang of, be influencing how our sales get compared. Understood. But in terms of the receivables and inventory, would it be right to think that, so if I look at March 2025, you know, we ended the year with around ₹230 to 40 crore of cash. And if I look at December, I think, we based on the commentary, we are still around ₹250 crore of cash. So would it right to think that we are sitting on a sizeable amount of inventory and receivables compared to a normal period?
Operator: So one is, of course, the impact of the biostimulants in B2C segments, which is hit as hard in Q2 and Q3 business opportunity. Then also, last year, we had some really powerful NPI new product introduction for chili segment. Chili has taken a major beating in this season down south. So the consumption has been significantly low, which is a very specialized segment, where farmer consumes only high value product. And that high value consumption has been hit hard. Third is, I think, at Dhanuka, we really optimize the channel inventory significantly faster than the industry standards. So we do not allow our channel partners to carry forward the inventory. We try and turn it around faster than what the industry averages would be. That could probably, you know, but this is an external factor, which I don't have a complete hang of, be influencing how our sales get compared. Understood. But in terms of the receivables and inventory, would it be right to think that, so if I look at March 2025, you know, we ended the year with around ₹230 to 40 crore of cash. And if I look at December, I think, we based on the commentary, we are still around ₹250 crore of cash. So would it right to think that we are sitting on a sizeable amount of inventory and receivables compared to a normal period?
Speaker #4: Chili has taken a major beating this season, down south. So the consumption has been significantly low. This is a very specialized segment, where the farmer consumes only high-value product.
Speaker #4: And that high-value consumption has been hit hard. Third is, I think, at Dhanuka, we really optimize the channel inventory significantly faster than the industry standards.
Speaker #4: So we do not allow our channel partners to carry forward the inventory. We try and turn it around faster than what the industry averages would be.
Speaker #4: That could probably but this is an external factor which I don't have a complete influencing how our sales get compared.
Speaker #5: Understood. But in terms of the receivables or inventory, would it be right to think that so if I look at March 2025, we ended the year with around 230 to 40 crores of cash.
Speaker #5: And if I look at December, I think 250 crores of cash. So would it be right to think that we are sitting on a sizable amount of inventory or receivables compared to a normal period?
Speaker #4: You see, in terms of March, we were having a loan to the bankers to the tune of ₹50 crore, which is paid in the current financial year, right?
Operator: यू सी, इन टर्म्स ऑफ मार्च, वी वर हैविंग ए लोन तू दी बैंकर तू दी ट्यून ऑफ INR 50 करोड़, विच इज पेड इन दी करंट फाइनेंशियल ईयर, राइट?
Operator: यू सी, इन टर्म्स ऑफ मार्च, वी वर हैविंग ए लोन तू दी बैंकर तू दी ट्यून ऑफ INR 50 करोड़, विच इज पेड इन दी करंट फाइनेंशियल ईयर, राइट?
Speaker #4: And now that our debtor portion is improved as compared to the last year, December. Inventory, of course, has increased. Because of the, you see, impact on the volumes, because there are many molecules which are imported, and we are we have we source the inventory as per our sales plan.
Operator: And now, that our debt position is improved as compared to the last year December. Inventory, of course, has increased because of the easy impact on the volumes, because there are many molecules, which are imported. And we are, I mean, we have, we source the inventory as per our sales plan. But somehow, that misfired. So because of which, our inventory of few imported molecules have increased significantly this year. Sorry to interrupt you, sir. You may please rejoin the queue for the next question. The next question is from the line of Ketan Chawla from Affirma Capital. Please go ahead. Thanks for the opportunity. Sir, if you look at the gross margins from FY 23 to FY 25, there was an expansion of approximately 580 bips. You know, our margins went from 34.4% to 40.2%. And if you look at the backdrop, this was in an environment when technical prices were benign due to over supply and inventory issues. I, in one of the earlier con calls, I believe you had referred that you were expecting 100 to 150 bips of contraction in gross margins, because we were expecting the prices to stabilize and then thereafter increase. But if you look at the gross margin for the current period, it's still at 40%. So two questions for you. Firstly, is the softness and technical raw material prices still there?
Operator: And now, that our debt position is improved as compared to the last year December. Inventory, of course, has increased because of the easy impact on the volumes, because there are many molecules, which are imported. And we are, I mean, we have, we source the inventory as per our sales plan. But somehow, that misfired. So because of which, our inventory of few imported molecules have increased significantly this year. Sorry to interrupt you, sir. You may please rejoin the queue for the next question. The next question is from the line of Ketan Chawla from Affirma Capital. Please go ahead. Thanks for the opportunity. Sir, if you look at the gross margins from FY 23 to FY 25, there was an expansion of approximately 580 bips. You know, our margins went from 34.4% to 40.2%. And if you look at the backdrop, this was in an environment when technical prices were benign due to over supply and inventory issues. I, in one of the earlier con calls, I believe you had referred that you were expecting 100 to 150 bips of contraction in gross margins, because we were expecting the prices to stabilize and then thereafter increase. But if you look at the gross margin for the current period, it's still at 40%. So two questions for you. Firstly, is the softness and technical raw material prices still there?
Speaker #4: But somehow, that misfired. But because of that, our inventory of a few imported molecules has increased significantly this
Speaker #4: Year. Sorry to interrupt you, sir.
Speaker #1: You may please rejoin the queue for the next question. The next question is from the line of Ketan Chavla from Affirma Capital. Please go ahead.
Speaker #1: ahead. Thanks for the
Speaker #5: Opportunity. Sir, if we look at our gross margins from FY23 to FY25, there was an expansion of approximately 580 bps. Our margins went from 34.4% to 40.2%.
Speaker #5: And if you look at the backdrop, this was an environment when technical prices were benign due to oversupply in inventory issues. I in one of the earlier con calls, I believe you had referred that you were expecting 100 to 150 bips of contraction in gross margins.
Speaker #5: Because we were expecting the prices increase. But if you look at the gross margin for the current period, it's still at 40%. So two questions for you.
Speaker #5: Firstly, is the softness in technical raw material prices still there? And how long do we expect the softness to continue? And second question is, once the cycle turns and prices stabilize and increase, what is our expectation of the sustainable gross margin that we can
Operator: And how long do we expect the softness to continue? And second question is, once the cycle turns and prices stabilize and increase, what is our expectation of the sustainable gross margin that we can have?
Operator: And how long do we expect the softness to continue? And second question is, once the cycle turns and prices stabilize and increase, what is our expectation of the sustainable gross margin that we can have?
Speaker #5: have? So you
Operator: तो यू सी, दी वन इंपैक्ट ऑफ दी ग्रॉस मार्जिन इज ऑन अकाउंट ऑफ दिस ईयर। वी रिसीवड अराउंड दी एनईबी ऑफ INR 20 करोड़, 19.5 करोड़, विच हैज नो बेसिकली कॉस्ट। तो दिस एंटायरली इंपैक्टिंग दी ग्रॉस मार्जिन टू दी एक्सटेंट। अदर इज, विद रिगार्ड टू दी टेक्निकल प्राइसेस, आई थिंक दी सॉफ्टनिंग इज ऑलमोस्ट ओवर नाउ। एंड गोइंग फॉरवर्ड, आई एम ऑफ दी ओपिनियन कि 38% ग्रॉस मार्जिन आर सस्टेनेबल इन लॉन्ग टर्म। ओके। यू आर सेइंग दैट नाउ यू आर सीइंग टेक्निकल प्राइसेस पिकिंग अप एंड स्टेबलाइजिंग। एंड यू एक्सपेक्ट अबाउट 200 बिप्स इंपैक्ट ऑन योर मार्जिंस। एंड सस्टेनेबल शुड बी मोर 38% ग्रॉस मार्जिंस एज अपोज्ड टू 40%, विच हैव बीन देयर फॉर दी लास्ट ईयर, ईयर एंड हाफ। या, यह 2% इंपैक्ट ऑन अकाउंट ऑफ नॉट दी रॉ मटेरियल प्राइसेस, इट वुड बी ऑन अकाउंट ऑफ दी एनईबी। अंडरस्टुड। एंड व्हाट परसेंट ऑफ आर रॉ मटेरियल इज एक्चुअली सोर्स्ड फ्रॉम चाइना?
Operator: तो यू सी, दी वन इंपैक्ट ऑफ दी ग्रॉस मार्जिन इज ऑन अकाउंट ऑफ दिस ईयर। वी रिसीवड अराउंड दी एनईबी ऑफ INR 20 करोड़, 19.5 करोड़, विच हैज नो बेसिकली कॉस्ट। तो दिस एंटायरली इंपैक्टिंग दी ग्रॉस मार्जिन टू दी एक्सटेंट। अदर इज, विद रिगार्ड टू दी टेक्निकल प्राइसेस, आई थिंक दी सॉफ्टनिंग इज ऑलमोस्ट ओवर नाउ। एंड गोइंग फॉरवर्ड, आई एम ऑफ दी ओपिनियन कि 38% ग्रॉस मार्जिन आर सस्टेनेबल इन लॉन्ग टर्म। ओके। यू आर सेइंग दैट नाउ यू आर सीइंग टेक्निकल प्राइसेस पिकिंग अप एंड स्टेबलाइजिंग। एंड यू एक्सपेक्ट अबाउट 200 बिप्स इंपैक्ट ऑन योर मार्जिंस। एंड सस्टेनेबल शुड बी मोर 38% ग्रॉस मार्जिंस एज अपोज्ड टू 40%, विच हैव बीन देयर फॉर दी लास्ट ईयर, ईयर एंड हाफ। या, यह 2% इंपैक्ट ऑन अकाउंट ऑफ नॉट दी रॉ मटेरियल प्राइसेस, इट वुड बी ऑन अकाउंट ऑफ दी एनईबी। अंडरस्टुड। एंड व्हाट परसेंट ऑफ आर रॉ मटेरियल इज एक्चुअली सोर्स्ड फ्रॉम चाइना?
Speaker #4: see, the one impact of the gross margin is on account of this year, we received around the NEB of rupees. 20 no basically cause for this crores, 19.5 crores, which has entirely impacting the gross margin to the extent.
Speaker #4: Another is with regard to the technical prices, I think the softening is almost over now. And in my opinion, key 38% gross margin is sustainable in the long term.
Speaker #4: Going forward, I am of the
Speaker #5: Okay. You're saying that now you're seeing technical prices picking up and stabilizing, and you expect about 200 bps impact on your margins, and sustainably, it should be more 38% gross margins as opposed to 40-odd percent, which have been there for the last year, year and a half.
Speaker #5: half. Yeah.
Speaker #4: The 2% impact on the account is not due to raw material prices; it would be on account of the NEB.
Speaker #5: Understood. And what percent of our raw material is actually sourced from China?
Speaker #4: Direct procurement would be in the range of 10 to 15 percent.
Operator: Direct procurement would be in the range of 10 to 15%. And if you include indirect as well, then how much would that be? Indirect is difficult to say, because we buy a lot of material from Indian companies, who are both manufacturers and importers. So it is difficult to say what would be the indirect procurement from China. Got it. Thank you, sir. I will come back in the question queue. Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Parth Mehta from Vallum Capital. Please go ahead. Hi, sir. Thank you for taking my question. Just wanted to know for the quarter, what would have been the contribution from the volume and price?
Operator: Direct procurement would be in the range of 10 to 15%. And if you include indirect as well, then how much would that be? Indirect is difficult to say, because we buy a lot of material from Indian companies, who are both manufacturers and importers. So it is difficult to say what would be the indirect procurement from China. Got it. Thank you, sir. I will come back in the question queue. Thank you. A reminder to all participants, you may press star and one to ask a question. The next question is from the line of Parth Mehta from Vallum Capital. Please go ahead. Hi, sir. Thank you for taking my question. Just wanted to know for the quarter, what would have been the contribution from the volume and price?
Speaker #5: And if you include indirect as well, then how much would that be?
Speaker #4: Indirect is difficult to say because we buy a lot, we are both manufacturers of material from Indian companies and importers. So it is difficult to say what would be the indirect procurement from.
Speaker #4: China. Got it.
Speaker #5: Thank you, sir. I'll come back with the question.
Speaker #5: Q. Thank
Speaker #1: A reminder to all participants: you may press star and one to ask a question from the line of Parth Mehta from Vellum Capital. Please go ahead.
Speaker #6: Yeah. Hi, sir. Thank you for taking my question. Just wanted to know, for the quarter, what would have been the contribution from the volume and
Speaker #6: Price? You see, in this quarter,
Operator: You see, in this quarter, it's almost flat. Similar value and volume are almost similar. Okay. Okay. So equal contribution from volume and value, right? Volume and price. Yes, that's right. Understood. And just wanted to ask, in the previous quarter, there was you had given a guidance card and guided the full year to be ending with a flattish growth. So would this still be achievable, and do you think there could be some growth in Q4, given that Q4 has a good start? Yes, in case of Q4, that's definitely there would be a growth. But on yearly basis, we are of the opinion, it should be flattish year. Okay. Got it. And just one on the guidance of the two bear products, the guidance for the full year was around ₹40 crores. So is that achievable? Would be ending it ₹40 crores?
Operator: You see, in this quarter, it's almost flat. Similar value and volume are almost similar. Okay. Okay. So equal contribution from volume and value, right? Volume and price. Yes, that's right. Understood. And just wanted to ask, in the previous quarter, there was you had given a guidance card and guided the full year to be ending with a flattish growth. So would this still be achievable, and do you think there could be some growth in Q4, given that Q4 has a good start? Yes, in case of Q4, that's definitely there would be a growth. But on yearly basis, we are of the opinion, it should be flattish year. Okay. Got it. And just one on the guidance of the two bear products, the guidance for the full year was around ₹40 crores. So is that achievable? Would be ending it ₹40 crores?
Speaker #4: It's almost flat. Similarly, value and volume are almost...
Speaker #6: Okay. Okay. So equal
Speaker #6: Contribution from volume and value, right? Similar.
Speaker #4: Yeah. Yeah. That's right.
Speaker #6: Understood. And just wanted to ask, in the previous quarter, you had given a guidance cut and guided the full year to be ending with flattish growth.
Speaker #6: So, would this still be achievable, or do we think there could be some growth in Q4, given that Q4 has a good start?
Speaker #4: Yeah, in case of Q4, definitely there would be growth. But on a yearly basis, we are of the opinion that this should be flattest.
Speaker #4: year. Okay.
Speaker #6: Got it. And just one on the guidance for the two Bayer products—the guidance for the full year was around ₹40 crore. So, is that achievable?
Speaker #6: Would it be ending at ₹40 crore?
Speaker #5: No, no, no. Because of the grief season, it has not behaved as per our expectation. So it would not be ₹40 crore; it would be significantly lower than ₹40 crore.
Operator: नो, नो, नो। बिकॉज़ ऑफ़ दी ग्रेप सीज़न नॉट बिहेव्ड एज़ पर अवर एक्सपेक्टेशन, तो इट वुड नॉट बी ₹40 करोड़। इट वुड बी सिग्निफिकेंटली लोअर दैन ₹40 करोड़। ओके। मे बी अराउंड ₹30 करोड़। ओके। थैंक यू। थैंक यू। दी नेक्स्ट क्वेश्चन इज़ फ्रॉम दी लाइन ऑफ़ अर्चित जोशी फ्रॉम नोवामा। प्लीज़ गो अहेड। हाय। गुड इवनिंग, सर। एंड थैंक्स फॉर दी अपॉर्चुनिटी। आई जस्ट हैव वन क्वेश्चन। सर, व्हाट वुड यू मेक आउट ऑफ़ दी करंट ड्राफ्ट पेस्टिसाइड्स मैनेजमेंट बिल प्रपोज़्ड बाय दी गवर्नमेंट? एंड व्हाट वुड दी लॉन्ग टर्म इंपैक्ट्स बी फॉर ऑर्गनाइज़्ड प्लेयर्स लाइक अस एट धानुका एग्रीटेक?
Operator: नो, नो, नो। बिकॉज़ ऑफ़ दी ग्रेप सीज़न नॉट बिहेव्ड एज़ पर अवर एक्सपेक्टेशन, तो इट वुड नॉट बी ₹40 करोड़। इट वुड बी सिग्निफिकेंटली लोअर दैन ₹40 करोड़। ओके। मे बी अराउंड ₹30 करोड़। ओके। थैंक यू। थैंक यू। दी नेक्स्ट क्वेश्चन इज़ फ्रॉम दी लाइन ऑफ़ अर्चित जोशी फ्रॉम नोवामा। प्लीज़ गो अहेड। हाय। गुड इवनिंग, सर। एंड थैंक्स फॉर दी अपॉर्चुनिटी। आई जस्ट हैव वन क्वेश्चन। सर, व्हाट वुड यू मेक आउट ऑफ़ दी करंट ड्राफ्ट पेस्टिसाइड्स मैनेजमेंट बिल प्रपोज़्ड बाय दी गवर्नमेंट? एंड व्हाट वुड दी लॉन्ग टर्म इंपैक्ट्स बी फॉर ऑर्गनाइज़्ड प्लेयर्स लाइक अस एट धानुका एग्रीटेक?
Speaker #5: Here. Okay. Maybe around 30, 30 crores.
Speaker #6: Okay. Thank you.
Speaker #1: Thank you. The next question is from the line of Archit Joshi from Novama. Please go ahead.
Speaker #6: Hi, good evening, sir, and thanks for the opportunity. I just have one question. Sir, what would you make out of the current draft Pesticides Management Bill proposed by the government?
Speaker #6: And what would the long-term impacts be for organized players like us at Dhanuka Agritech? So, your thoughts. Thank you.
Operator: So your thoughts. Thank you. Right. So draft Pesticide Management Bill would be really good for the organized industry and organized players. Dhanuka being an organized player and believing in building brand equity, building value for the customer, in this case our farmer, would significantly stand to benefit from the PMB. PMB, apart from various other things, brings in tough rules around misbranding, fake, spurious products. It brings steep punitive measures around fly by night operators, which will be a big deterrent and will open up more market space for organized players like ourselves. PMB, I think so, is long awaited. It dates. The government has asked for various inputs from all possible stakeholders, including farmer. We as the industry and industry associations have submitted our viewpoints, contributed for the same by fourth of February, date was to be achieved. So we have provided our views, where the government and the industry together can facilitate the desired growth of the Indian agriculture and prosperity of the Indian farmer. Short, sir. Sir, upon its execution and obviously after taking the comments from all the stakeholders in the industry, would you have any expectations and have an understanding on how the government will try to maintain checks and balances about the most talked of problem with respect to spurious products and the misbranding that you spoke of?
Operator: So your thoughts. Thank you. Right. So draft Pesticide Management Bill would be really good for the organized industry and organized players. Dhanuka being an organized player and believing in building brand equity, building value for the customer, in this case our farmer, would significantly stand to benefit from the PMB. PMB, apart from various other things, brings in tough rules around misbranding, fake, spurious products. It brings steep punitive measures around fly by night operators, which will be a big deterrent and will open up more market space for organized players like ourselves. PMB, I think so, is long awaited. It dates. The government has asked for various inputs from all possible stakeholders, including farmer. We as the industry and industry associations have submitted our viewpoints, contributed for the same by fourth of February, date was to be achieved. So we have provided our views, where the government and the industry together can facilitate the desired growth of the Indian agriculture and prosperity of the Indian farmer. Short, sir. Sir, upon its execution and obviously after taking the comments from all the stakeholders in the industry, would you have any expectations and have an understanding on how the government will try to maintain checks and balances about the most talked of problem with respect to spurious products and the misbranding that you spoke of?
Speaker #5: Draft pesticide management right. So, really good for the organized industry and organized players. Dhanuka, being an organized player and believing in building brand customer—in this case, our farmer—would significantly stand to benefit from the PMB.
Speaker #5: PMB, apart from various other things, brings in tough rules around misbranding and fake, spurious products. It brings in stiff punitive measures around fly-by-night operators, which will be a big deterrent and will open up more market space for organized players like ourselves.
Speaker #5: PMB, I think so, is long awaited. The government is asked for various inputs from all possible stakeholders, including farmers. We as the industry submitted our viewpoints, contributed for the same by 4th of February—that was to be achieved.
Speaker #5: So, we have provided our views, where the government and the industry together can facilitate the desired growth of Indian agriculture and the prosperity of the Indian farmer.
Speaker #5: Sure, sir. Sir, upon its execution, and obviously after taking the comments from all the stakeholders in the industry, would you have any expectations or have an understanding on how the government will try to maintain checks and balances about the most talked-of problem with respect to spurious products and the misbranding that you spoke of?
Speaker #5: Would you have any comments on that account which might help us, or rather as an organized industry, to gain more market share from the ones who are doing the malpractices?
Operator: Would you have any comments on that account, which might help us, and rather as an organized industry, to gain more market share from the ones who are doing the malpractices?
Operator: Would you have any comments on that account, which might help us, and rather as an organized industry, to gain more market share from the ones who are doing the malpractices?
Speaker #4: Agriculture is a state subject, and to an extent, the regulatory and executive powers are also with the state, which is certainly not going to change with the law.
Operator: Agriculture is a state subject and to an extent, the regulatory and the executive powers is also with the state, which is certainly not going to change with the law. Yet, the provisions will make it difficult for the hand in glove operators, with the fly by night operators. There are other agencies who could be hand in glove with these. It will become difficult for them to really play around. Yet, the success of any law depends on how well it gets executed, where the center and the states will have to collaborate to ensure that the execution is in the spirit of the letter. That is something, that is something at Novama yourselves and at Dhanuka and the entire industry would look forward to that the execution is in the spirit with which the law is framed. Short, sir. Understood. We will definitely hope for the best. Thank you, sir. That's it for. That's it from me. Thank you. All the best. Thank you. Thank you. The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead. Opportunity. Sir, in terms of new product introductions for next year, FY27, how are we placed and what could be the 93, 94 products for what categories that we are looking at?
Operator: Agriculture is a state subject and to an extent, the regulatory and the executive powers is also with the state, which is certainly not going to change with the law. Yet, the provisions will make it difficult for the hand in glove operators, with the fly by night operators. There are other agencies who could be hand in glove with these. It will become difficult for them to really play around. Yet, the success of any law depends on how well it gets executed, where the center and the states will have to collaborate to ensure that the execution is in the spirit of the letter. That is something, that is something at Novama yourselves and at Dhanuka and the entire industry would look forward to that the execution is in the spirit with which the law is framed. Short, sir. Understood. We will definitely hope for the best. Thank you, sir. That's it for. That's it from me. Thank you. All the best. Thank you. Thank you. The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead. Opportunity. Sir, in terms of new product introductions for next year, FY27, how are we placed and what could be the 93, 94 products for what categories that we are looking at?
Speaker #4: Yet the provisions will make it difficult for the hand-in-glove operators with the fly-by-night operators; there are other agencies who could be hand-in-glove with these.
Speaker #4: It will become difficult for them to really play around. Yet, the success of any law depends on how well it gets executed, where the Center and the states will have to collaborate to ensure that the execution is in the spirit of the law.
Speaker #4: That is something at Novama, yourselves, and at Dhanuka, and the entire industry would look forward to—that the execution is in the spirit with which the law is framed.
Speaker #5: Understood.
Speaker #4: Thank you, sir.
Speaker #5: That's it from me. Thank you. Hope for the best. All the best. Thank you.
Speaker #1: Thank you. The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead.
Speaker #6: Opportunity. Sir, in terms of new product introductions for next year, FY27, how are we placed and what could be the 93, 94 products for what categories that we are looking at?
Speaker #6: Thank you.
Operator: Thank you. Yes, so we have lined up three new launches for next year, out of which two would be fungicides. And both of them would be first time introductions. And then we have also lined up a specialty offering for enhancing spray efficiency. So these are the three products, which we have lined up for introduction over next year. And from an application perspective, which crops these would be utilized primarily for?
Operator: Thank you. Yes, so we have lined up three new launches for next year, out of which two would be fungicides. And both of them would be first time introductions. And then we have also lined up a specialty offering for enhancing spray efficiency. So these are the three products, which we have lined up for introduction over next year. And from an application perspective, which crops these would be utilized primarily for?
Speaker #5: Yeah, so we have lined up three new launches for next year, out of which two would be fungicides, and both of them would be 9(3) first-time introductions.
Speaker #5: And then we have also lined up a specialty offering for enhancing spray efficiency. So, these are the three products which we have lined up here.
Speaker #5: And then we have also lined up a specialty offering for enhancing spray efficiency. So these are the three products which we have lined up here.
Speaker #5: For introduction, over next, and from an application.
Speaker #6: From a perspective, which crops would these be utilized primarily for?
Speaker #5: Right. So both the fungicides will find their application significantly in grapes, and then in potato. They will also find application in tomato and chili.
Operator: Right. So both the fungicides will find their application significantly in grapes and then in potato. They will also find application in tomato and chili. So grapes, tomato, chili, all three being high value crops, will have a good opportunity. And the third spray enhancer also as a premium product, will be positioning largely in tomato markets. Sure. Sir, second question in terms of the current environment. I mean, as of now, there are talks that there will be probably El Niño this year. Historically, since we have been through several cycles, whenever the El Niño has happened, has it impacted materially in terms of the performance for a particular kharif season? And allied question to that, we have also experienced the farm income being lower, getting impacted the Q3 numbers. If it continues to remain low, will it have its repercussion for the next kharif season?
Operator: Right. So both the fungicides will find their application significantly in grapes and then in potato. They will also find application in tomato and chili. So grapes, tomato, chili, all three being high value crops, will have a good opportunity. And the third spray enhancer also as a premium product, will be positioning largely in tomato markets. Sure. Sir, second question in terms of the current environment. I mean, as of now, there are talks that there will be probably El Niño this year. Historically, since we have been through several cycles, whenever the El Niño has happened, has it impacted materially in terms of the performance for a particular kharif season? And allied question to that, we have also experienced the farm income being lower, getting impacted the Q3 numbers. If it continues to remain low, will it have its repercussion for the next kharif season?
Speaker #5: So, grapes, tomato, and chili—all three being high-value crops—will have a good opportunity. And the third spray enhancer, also as a premium product, will be positioned largely in tomato markets.
Speaker #6: Sure. Sir, second question: in terms of the current environment, I mean, as of now, there are talks that there will be probably El Niño this year.
Speaker #6: Historically, since we’ve been through several cycles, whenever the El Niño has happened, has it impacted the performance for a particular kharif season? And a light question to that, we have also experienced the farm income being lower, impacting the Q3 numbers.
Speaker #6: If it continues to remain low, will it have its repercussion for the next Kharif season? Just your thoughts on this.
Operator: Just your thoughts on this. Thank you. Right. So first a take on El Niño, the El Niño predictions, which have come up recently, are followed up by these being too early and the margin of error being significantly higher. So the new predictions normally come in after mid-April. Will be waiting for that to really understand how intense El Niño forecast is. Yet, you would have also noticed that all El Niño years are not poor rainfall years. So that being said, we will have to wait for IMD, Australian Meteorological Department and few other meteorological departments for us to kind of collate and understand how do we see the upcoming kharif. Talking about the farm income, so it is the farm income, which not only Dhanuka Agritech, but almost the entire nation depends upon agriculture, contributing 14% of the GDP and more than 50% of the population being dependent on agriculture. Not only agri inputs, but FMCG, FMCD, automobile industry depends on their success. So yes, we not only keep our fingers crossed. We genuinely pray and at Dhanuka, we work closely with the farmer, so that we can support in enhancing their income. Got that. Sir, just one last clarification in terms of our Dahej manufacturing block. Are there any talks going on with any of the multinational players and players outside India for an exclusive contract and arrangement, which we have been seeking for a fairly long time?
Operator: Just your thoughts on this. Thank you. Right. So first a take on El Niño, the El Niño predictions, which have come up recently, are followed up by these being too early and the margin of error being significantly higher. So the new predictions normally come in after mid-April. Will be waiting for that to really understand how intense El Niño forecast is. Yet, you would have also noticed that all El Niño years are not poor rainfall years. So that being said, we will have to wait for IMD, Australian Meteorological Department and few other meteorological departments for us to kind of collate and understand how do we see the upcoming kharif. Talking about the farm income, so it is the farm income, which not only Dhanuka Agritech, but almost the entire nation depends upon agriculture, contributing 14% of the GDP and more than 50% of the population being dependent on agriculture. Not only agri inputs, but FMCG, FMCD, automobile industry depends on their success. So yes, we not only keep our fingers crossed. We genuinely pray and at Dhanuka, we work closely with the farmer, so that we can support in enhancing their income. Got that. Sir, just one last clarification in terms of our Dahej manufacturing block. Are there any talks going on with any of the multinational players and players outside India for an exclusive contract and arrangement, which we have been seeking for a fairly long time?
Speaker #5: Right. So first, a take on El Niño. The recent ones are followed up by these being too early, and the margin of error being significantly higher.
Speaker #5: So, the new predictions normally come in after mid-April. We will be waiting for that to really understand how intense the El Niño forecast is. Yet, you would have also noticed that all El Niño years are not poor rainfall years.
Speaker #5: So, that being said, we'll have to wait for the Australian Meteorological Department and a few other meteorological departments for us to kind of collate and understand how do we see the upcoming curry.
Speaker #5: Talking about the farm income, it is the farm income on which not only Dhanuka Agritech, but almost the entire nation depends, with agriculture contributing 14% of the GDP and more than 50% of the population being dependent on agriculture.
Speaker #5: Not only agri inputs, but FMCG, FMCD, and the automobile industry depend on their success. So yes, we not only keep our fingers crossed; we genuinely pray, and at Dhanuka, we work closely with the farmer so that we can support in enhancing their income.
Speaker #6: Got that. Sir, just one last clarification in terms of the hedge manufacturing block. Are there any talks going on with any of the multinational players or players outside India for an exclusive contract or arrangement, which we have been seeking for a fairly long time?
Speaker #6: Thank you.
Operator: Thank you. Yes, there is one discussion, which is going on. In last quarter, two companies have visited us at Dahej. So one Japanese and one European. So we are looking forward to progressing on these discussions further. Sure. That is helpful. Thanks a lot and all the best, sir. Thank you. The next question is from the line of Rajat Setiya from iThought PMS. Please go ahead. Hi. Thanks for the opportunity. Sir, just one question. The amount of sales return in this quarter? Yes, sales return in this quarter is similar to last year in Q3. Yes, sir. What is the number? I was not able to find the number for last year. This year is INR 72 crore, as against INR 74 crore last year. Right. So INR 72 in this quarter, right?
Operator: Thank you. Yes, there is one discussion, which is going on. In last quarter, two companies have visited us at Dahej. So one Japanese and one European. So we are looking forward to progressing on these discussions further. Sure. That is helpful. Thanks a lot and all the best, sir. Thank you. The next question is from the line of Rajat Setiya from iThought PMS. Please go ahead. Hi. Thanks for the opportunity. Sir, just one question. The amount of sales return in this quarter? Yes, sales return in this quarter is similar to last year in Q3. Yes, sir. What is the number? I was not able to find the number for last year. This year is INR 72 crore, as against INR 74 crore last year. Right. So INR 72 in this quarter, right?
Speaker #5: Yeah. There
Speaker #5: This is one discussion which is going on in the last quarter. Two companies have visited us at the hedge, one Japanese and one European.
Speaker #5: So, we are looking forward to progressing on these discussions further.
Speaker #6: Sure, that is helpful. Thanks a lot, and all the best, sir.
Speaker #1: Thank you. The next question is from the line of Rajat Sethia from iThought PMS. Please go ahead.
Speaker #7: Hi. Thanks for the opportunity. Sir, just one question. The amount of sales return in this—
Speaker #7: Hi. Thanks for the opportunity. Sir, just one question—the amount of sales return in this quarter? Yeah.
Speaker #5: Sales return in this quarter is similar to last year.
Speaker #5: Q3. Yeah.
Speaker #7: Sir, what is the number? I was not able to find.
Speaker #7: the number for last year.
Speaker #5: This
Speaker #5: Year is ₹72 crore, sir, as against ₹74 crore last year.
Speaker #5: year. Right.
Speaker #7: So, 72 in this quarter, right?
Speaker #5: Yeah, in this quarter. That's right.
Operator: हाँ, इन तीसरे क्वार्टर। That's right. And the nine month number would then be closer to ₹220 crore, correct? हाँ, that's right. Okay. All right. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Amit Khetan from Laburnum Capital. Please go ahead. Hi, sir. Thank you for the opportunity. So if you would to take a slightly medium to longer term view. Sorry to interrupt you, sir. We are unable to hear you. Please use your handset. Sir, are you able to hear me?
Operator: हाँ, इन तीसरे क्वार्टर। That's right. And the nine month number would then be closer to ₹220 crore, correct? हाँ, that's right. Okay. All right. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Amit Khetan from Laburnum Capital. Please go ahead. Hi, sir. Thank you for the opportunity. So if you would to take a slightly medium to longer term view. Sorry to interrupt you, sir. We are unable to hear you. Please use your handset. Sir, are you able to hear me?
Speaker #7: And the nine-month number would then be closer to 220.
Speaker #7: crores, correct? Yeah.
Speaker #5: That's
Speaker #5: right. Okay.
Speaker #7: All right. Thank you.
Speaker #1: Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all participants in the conference, please limit your questions to two per participant.
Speaker #1: Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Amit Ketan from Lumburmam Capital.
Speaker #1: Please go ahead.
Speaker #5: Hi, sir. Thank you for the opportunity. So, if you were to take a slightly medium- to longer-term
Speaker #5: view, sorry to
Speaker #1: Interrupt you, sir, we are unable to hear you. Please use your handset. Sir, are you able to hear?
Speaker #1: me? Yeah.
Speaker #5: I can hear you. Hello?
Operator: Yes, I can hear you. Hello. Yes, yes, sir. Please go ahead. Yes, hi. Thank you for the opportunity. So if I, if I, if we take a slightly longer term view of, say, three to five years, what is the kind of growth opportunity for Dhanuka? What, what sort of growth rate can we realistically grow at?
Operator: Yes, I can hear you. Hello. Yes, yes, sir. Please go ahead. Yes, hi. Thank you for the opportunity. So if I, if I, if we take a slightly longer term view of, say, three to five years, what is the kind of growth opportunity for Dhanuka? What, what sort of growth rate can we realistically grow at?
Speaker #1: Yes. Yes, sir. Please go ahead.
Speaker #5: Yeah. Hi. Thank you for the opportunity. So, if we take a slightly longer-term view of, say, three to five years, Dhanuka, what sort of growth rate can we realistically grow at?
Speaker #5: And it will be helpful if you can break that down into growth from existing products, as well as new molecules, and exports, as well as getting into new.
Operator: And it will be helpful if you can break that down into growth from existing products as well as new molecules and exports as well as getting into new crops. Right. So this is a very large question, but let us look at the macro economics favoring the agriculture. Yeah, I see an echo in my voice. So there is a sound system over there, which is causing this echo. Okay, let me just mute it from my side. Yeah, I hope so. There is no more echo. So the macro economic factors certainly favor agriculture and so the agri input industry also. While urea, DAP, other nutritional segment is what farmer invest in eagerly. Crop protection industry has taken up a strong position with investments in the agriculture increasing and value added crops gaining ground, significant ground in the agriculture space. Within that domain, Dhanuka has constantly brought in new products, value added products, specialty products and niche products from our Japanese, European and US based partners, thereby offering to the farmer specialized solutions for their problem. So with this, we have a place in specialized crops like grapes, tomato, chili, some of them getting exported as well. While we also have a strong foothold in conventional crops like rice, paddy, soybean, cotton and tea. So overall, with this kind of favorable macro economic situation, I believe we will continue to grow at Dhanuka with a healthy double digit growth on a short to mid term horizon of next three to five years. The expansion opportunity is available due to multiple crop cycles. Farmer is trying to grow more than two crops now, which is almost three crops in many patches of the country, which is possible A because of the irrigation facility and B because of the increase in marketability of the produce. India, with the six more than 600 grams per hectare agrochemical consumption, is still one of the lowest as compared to the world average agrochemical consumption with the significantly high arable land of 150 million hectares. So the growth opportunity is only northwards. It really depends upon how intensely we are able to reach to every nook and corner, every plot and field, where farmer is cultivating. Understood. And if I, if I could, you know, what do you see the risk aside from, say, you know, weather patterns?
Operator: And it will be helpful if you can break that down into growth from existing products as well as new molecules and exports as well as getting into new crops. Right. So this is a very large question, but let us look at the macro economics favoring the agriculture. Yeah, I see an echo in my voice. So there is a sound system over there, which is causing this echo. Okay, let me just mute it from my side. Yeah, I hope so. There is no more echo. So the macro economic factors certainly favor agriculture and so the agri input industry also. While urea, DAP, other nutritional segment is what farmer invest in eagerly. Crop protection industry has taken up a strong position with investments in the agriculture increasing and value added crops gaining ground, significant ground in the agriculture space. Within that domain, Dhanuka has constantly brought in new products, value added products, specialty products and niche products from our Japanese, European and US based partners, thereby offering to the farmer specialized solutions for their problem. So with this, we have a place in specialized crops like grapes, tomato, chili, some of them getting exported as well. While we also have a strong foothold in conventional crops like rice, paddy, soybean, cotton and tea. So overall, with this kind of favorable macro economic situation, I believe we will continue to grow at Dhanuka with a healthy double digit growth on a short to mid term horizon of next three to five years. The expansion opportunity is available due to multiple crop cycles. Farmer is trying to grow more than two crops now, which is almost three crops in many patches of the country, which is possible A because of the irrigation facility and B because of the increase in marketability of the produce. India, with the six more than 600 grams per hectare agrochemical consumption, is still one of the lowest as compared to the world average agrochemical consumption with the significantly high arable land of 150 million hectares. So the growth opportunity is only northwards. It really depends upon how intensely we are able to reach to every nook and corner, every plot and field, where farmer is cultivating. Understood. And if I, if I could, you know, what do you see the risk aside from, say, you know, weather patterns?
Speaker #5: crops. Right.
Speaker #6: So, this is a very large question, but let us look at the macroeconomics favoring the—
Speaker #6: Agriculture. Yeah, I hear echo in my voice. So, there's a sound system over there which is causing this echo.
Speaker #5: Okay. Let me just mute it from my...
Speaker #5: side. Yeah.
Speaker #6: I hope so there is no more echo. So the macroeconomic factors certainly favor agriculture, and so the agri input industry also. While urea, DAP, and other nutritional segments are what farmers invest in eagerly, the crop protection industry has taken up a strong position, with investments in agriculture increasing and value-added crops gaining significant ground in the agriculture space.
Speaker #6: Within that brought in new domain, Dhanuka has constantly introduced value-added products, especially products and niche products from our Japanese, European, and US-based partners, thereby offering to the farmer specialized solutions for their problem.
Speaker #6: So, with this, we have a place in specialized crops like grapes, tomato, and chili, some of them getting exported as well. While we also have a strong foothold in conventional crops like rice, paddy, soybean, cotton, and tea.
Speaker #6: So overall, with this kind of favorable macroeconomic situation, I believe we will continue to grow at Dhanuka with a healthy double-digit growth on a short- to mid-term horizon of the next three to five years.
Speaker #6: The expansion opportunity is available due to multiple crop cycles. The farmer is trying to grow more than two crops now, which is almost three crops in many patches of the country. This is possible, A, because of the irrigation facility, and B, because of the increase in marketability of the produce.
Speaker #6: India, with more than 600 grams per hectare agrochemical consumption, is still one of the lowest as compared to the world average agrochemical consumption, with a significantly high arable land of 150 million hectares.
Speaker #6: So the growth opportunity is only northwards; it really depends upon how intensely we are able to reach every nook and corner, every plot and field where the farmer is cultivating.
Speaker #5: Understood. And if I could, what do you see as the risks aside from, say, weather patterns? What are the risks that could prevent you from achieving this double-digit growth?
Operator: What are the risks that could prevent you from achieving this double digit growth? Apart from the weather pattern, what matters? Would you put that on mute again?
Operator: What are the risks that could prevent you from achieving this double digit growth? Apart from the weather pattern, what matters? Would you put that on mute again?
Speaker #6: Apart from the weather pattern, what matters? Could you put that on mute again? I think so, that should work. So, apart from the weather patterns, the commodity prices and sometimes the policies like GRAMG now could also have an impact on how the farmer moves towards agri input.
Operator: I think so. That should work. So apart from the weather patterns, the commodity prices and sometimes, you know, the policies like PM-KISAN now could also have an impact on how the farmer moves towards agri input. A lot also depends upon the marketability, storage and transportation of the commodity. Earlier, India touched the milestone of almost 335 million metric tons of food grain production and very soon horticulture production crossed that level and touched 340 million metric tons. Now, horticulture production is a value added production for the farmer and relatively higher on input consumption. Increase in warehousing, increase in cold storage, increase in cold transportation, good roads, non-stoppage at toll plazas because of GST tax smoothening. All this will actually facilitate, only facilitate the progress of agriculture as well as agri input industry. So this infrastructural tailwinds being favorable, I think so. Other than seasonal vagaries, nothing should stop. Thank you, sir. May I request that you return to the question queue for follow-up questions, as there are several participants waiting for their turn. The next question is from the line of Ketan Chawla from Affirma Capital. Please go ahead. Thank you, sir. I have started clarification on my gross margin question earlier. So what is the total quantum of the net economic benefit that we receive, which will now go away once we have it on our books?
Operator: I think so. That should work. So apart from the weather patterns, the commodity prices and sometimes, you know, the policies like PM-KISAN now could also have an impact on how the farmer moves towards agri input. A lot also depends upon the marketability, storage and transportation of the commodity. Earlier, India touched the milestone of almost 335 million metric tons of food grain production and very soon horticulture production crossed that level and touched 340 million metric tons. Now, horticulture production is a value added production for the farmer and relatively higher on input consumption. Increase in warehousing, increase in cold storage, increase in cold transportation, good roads, non-stoppage at toll plazas because of GST tax smoothening. All this will actually facilitate, only facilitate the progress of agriculture as well as agri input industry. So this infrastructural tailwinds being favorable, I think so. Other than seasonal vagaries, nothing should stop. Thank you, sir. May I request that you return to the question queue for follow-up questions, as there are several participants waiting for their turn. The next question is from the line of Ketan Chawla from Affirma Capital. Please go ahead. Thank you, sir. I have started clarification on my gross margin question earlier. So what is the total quantum of the net economic benefit that we receive, which will now go away once we have it on our books?
Speaker #6: A lot also depends upon the marketability, storage, and transportation of the commodity. Earlier, India touched a milestone of almost 335 million metric tons of food grain production, and very soon horticulture production crossed that level and touched 340 million metric tons.
Speaker #6: Now, horticulture production is a value-added production for the farmer and there is relatively higher consumption. Increased warehousing, increased cold storage, increased cold transportation, good roads, non-stoppage at Chungi Nakas because of tax smoothening, all these will actually facilitate—only facilitate—the progress of agriculture as well as the agri-input industry.
Speaker #6: So, these infrastructural tailwinds being favorable, I think, other than seasonal vagaries, nothing should—
Speaker #6: stop. Thank you, sir.
Speaker #1: May we request that you return to the question queue for follow-up questions, as there are several participants waiting for their turn. The next question is from the line of Ketan Chavla from Affirma Capital.
Speaker #1: Please go
Speaker #1: ahead.
Speaker #6: Thank you, sir.
Speaker #6: I just had a clarification on my gross margin question earlier. So, what is the total quantum of the net economic benefit that we've received, which will now go away once we have it on our books?
Speaker #6: And secondly, what brands which we had acquired from—
Operator: And secondly, what is the gross margin profile of these two brands, which we had acquired from Bayers? So you see net economic benefit quantum in the nine months is ₹19.5 crores and in Q3 is around ₹6 crores. Okay. And what is the gross margin profile on these two brands? Gross margin is in the range of our overall gross margin. Okay. So broadly in line with 40% percent. Yes, absolutely. Some two three, 200, 300 basis points here and there. Understood. Thank you, sir. Thank you. The next question is from the line of Viraj Kacharia from Simple. Please go ahead. Yes, I just have two questions on the Bayer products. One is, if one have you understood the contribution margins of the two products, would it be in line with the B2C business margin or would it be even higher?
Operator: And secondly, what is the gross margin profile of these two brands, which we had acquired from Bayers? So you see net economic benefit quantum in the nine months is ₹19.5 crores and in Q3 is around ₹6 crores. Okay. And what is the gross margin profile on these two brands? Gross margin is in the range of our overall gross margin. Okay. So broadly in line with 40% percent. Yes, absolutely. Some two three, 200, 300 basis points here and there. Understood. Thank you, sir. Thank you. The next question is from the line of Viraj Kacharia from Simple. Please go ahead. Yes, I just have two questions on the Bayer products. One is, if one have you understood the contribution margins of the two products, would it be in line with the B2C business margin or would it be even higher?
Speaker #6: buyers? So you see net
Speaker #5: Economic benefit quantum in the nine-month is ₹19.5 crore, and in Q3 is around ₹6 crore.
Speaker #5: CR.
Speaker #6: Okay. And what is the
Speaker #6: Gross margin profile on these two brands?
Speaker #5: Gross margin is in the range of the overall gross margin.
Speaker #6: Okay, so broadly in line with
Speaker #6: 40-odd percent.
Speaker #5: Yeah,
Speaker #5: Absolutely. 200, 300 basis points here and there.
Speaker #6: Understood. Thank you, sir.
Speaker #1: Thank you. The next question is from the line of Viraj Kacharya from Simple. Please go ahead.
Speaker #7: Yeah, I just have two questions on the bare product. One is, if one has to understand the contribution margins of the two products, would it be in line with our B2C—higher?
Speaker #7: Any color you can give? Both contribution and operating margin.
Operator: Any color you can give, both contribution and operating margin. It is in line with the overall gross margin of the company. Okay. Got it. And second question is, you know, see, these two products, you know, they have a well established distribution system, right? You know, so in terms of our approach, you know, I think somewhere in the call you talk about us looking to appoint new set of distributors. So are they for the new markets और you know, और दोस्त, are for existing, you know, regions as well? Any color you can give, how are we approaching in terms of go to market and any risk you see in terms of execution?
Operator: Any color you can give, both contribution and operating margin. It is in line with the overall gross margin of the company. Okay. Got it. And second question is, you know, see, these two products, you know, they have a well established distribution system, right? You know, so in terms of our approach, you know, I think somewhere in the call you talk about us looking to appoint new set of distributors. So are they for the new markets और you know, और दोस्त, are for existing, you know, regions as well? Any color you can give, how are we approaching in terms of go to market and any risk you see in terms of execution?
Speaker #5: It is in line with the overall gross margin of the company.
Speaker #7: Okay. And second question—got it. I see these two products, they have a well-established distribution system, right? So in terms of our approach, I think somewhere in the call you talked about us looking to appoint a new set of distributors.
Speaker #7: Are they for the new markets, or are those for existing regions as well? Any color you can give on how we are approaching in terms of go-to-market, and any risk you see in terms of execution?
Speaker #5: So currently, in most of the countries, Bayer has been selling the product through its distribution network, as Bayer is present directly in most of the countries.
Operator: So currently in most of the countries, Bayer has been selling the product through its distribution network, as Bayer is present directly in most of the countries. Dhanuka is not planning to go direct distribution in these countries. So we are appointing one national distributor in the various markets. So the new distributor appointment, which I refer to earlier, was in the countries where Dhanuka is not present. In case of India and Nepal, we are not appointing any new distribution channel. Right. When going into '27, do you see any risk in terms of execution and, you know, since the products are being transition from Bayer to Dhanuka, so?
Operator: So currently in most of the countries, Bayer has been selling the product through its distribution network, as Bayer is present directly in most of the countries. Dhanuka is not planning to go direct distribution in these countries. So we are appointing one national distributor in the various markets. So the new distributor appointment, which I refer to earlier, was in the countries where Dhanuka is not present. In case of India and Nepal, we are not appointing any new distribution channel. Right. When going into '27, do you see any risk in terms of execution and, you know, since the products are being transition from Bayer to Dhanuka, so?
Speaker #5: Dhanuka is not planning to go for direct distribution in these countries, so we are appointing one national distributor in the various markets. So the new distributor appointment, which I referred to earlier, was in the countries where Dhanuka is not present.
Speaker #5: And Nepal, we are not appointing any new distribution channel.
Speaker #7: Right. But going into '27, do you see any risk in terms of execution, and since the products are being transitioned from Bare to Dhanuka?
Speaker #7: So
Speaker #5: The risk is in any business transaction; it is there in terms of the setback in terms of supply chain because, for supply chain, we are still dependent on the buyer to provide the product.
Operator: The risk is, in any business transaction, it is there in terms of the setback in terms of supply chain, because for supply chain, we are still dependent on Bayer to provide the product. And while the regulatory changes happen with registration ownership being transferred from Bayer to Dhanuka and India sourcing getting added, we will, we may see some issues in supply chain, although we have done the planning, but it is always a risk. Got it. And just last question, if I can freeze in. See, Bayer, you know, most of the manufacturing is centered in Europe and the cost of manufacturing is quite elevated compared to Chinese. So in that sense, you know, when we look to move one of the product from Germany to India, do you see any material change in the margin structure for the product and any color you can give?
Operator: The risk is, in any business transaction, it is there in terms of the setback in terms of supply chain, because for supply chain, we are still dependent on Bayer to provide the product. And while the regulatory changes happen with registration ownership being transferred from Bayer to Dhanuka and India sourcing getting added, we will, we may see some issues in supply chain, although we have done the planning, but it is always a risk. Got it. And just last question, if I can freeze in. See, Bayer, you know, most of the manufacturing is centered in Europe and the cost of manufacturing is quite elevated compared to Chinese. So in that sense, you know, when we look to move one of the product from Germany to India, do you see any material change in the margin structure for the product and any color you can give?
Speaker #5: And while the regulatory changes happen, with registration ownership being transferred from buyer to Dhanuka and India's sourcing getting added, we may see some issues in the supply chain. Although we have done the planning, it is always a
Speaker #5: risk. Got it.
Speaker #7: And this last question, if I can squeeze it in: see, bare most of the manufacturing is centered in Europe, and the cost of manufacturing is quite elevated compared to Chinese.
Speaker #7: So, in that sense, when we look to move one of the products from Germany to India, do you see any material change in the margin structure for the product, or any color you can...
Speaker #7: give? Yeah,
Operator: Yes, definitely, there would be an improvement in the margin structure for the products once the manufacturing moves to India. Absolutely. Thank you very much. Thank you. Ladies and gentlemen, we take that as the last question for today. I now hand the conference over to management for closing comments. Thank you, friends. Once again, I would like to thank all the investors and analysts for your support and confidence in Dhanuka. We have already initiated our FY27 planning and looking forward to a normal year. I reassure our stakeholders that we are committed to the task of transforming the landscape of agriculture and farmers in India. I once again reassure the stakeholders that the bad phase for the last two quarters is over now and now we have to look for a bright future only. Thank you. India का प्रणाम हर किसान के नाम। Thank you and looking forward to connecting with you in the next quarter. Thank you once again. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Operator: Yes, definitely, there would be an improvement in the margin structure for the products once the manufacturing moves to India. Absolutely. Thank you very much. Thank you. Ladies and gentlemen, we take that as the last question for today. I now hand the conference over to management for closing comments. Thank you, friends. Once again, I would like to thank all the investors and analysts for your support and confidence in Dhanuka. We have already initiated our FY27 planning and looking forward to a normal year. I reassure our stakeholders that we are committed to the task of transforming the landscape of agriculture and farmers in India. I once again reassure the stakeholders that the bad phase for the last two quarters is over now and now we have to look for a bright future only. Thank you. India का प्रणाम हर किसान के नाम। Thank you and looking forward to connecting with you in the next quarter. Thank you once again. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Speaker #5: Definitely, there would be an improvement in the margin structure for the products once the manufacturing moves to India, absolutely.
Speaker #7: Thank you very much.
Speaker #1: Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to management for closing comments.
Speaker #8: Thank you, friends. Once again, I would like to thank all the investors and analysts for your support and confidence in Dhanuka. We have already initiated our FY27 planning and are looking forward to a normal year.
Speaker #8: I reassure our stakeholders that we are committed to the task of transforming the landscape of agriculture and farmers in India. I once again reassure the stakeholders that the bad phase for the last two quarters is over now, and now we have to look for a bright future only.
Speaker #8: Thank you, India, ka pranam, har kisan ke naam. Thank you, and looking forward to connecting with you in the next quarter. Thank you once again.
Speaker #8: Thank you, India, ka pranaam, har kisan ke naam. Thank you, and looking forward to connecting with you in the next quarter. Thank you once again.
