homebusiness Newscompanies NewsDhanuka Agritech forecasts modest revenue uptick in third quarter, driven by volume growth
Dhanuka Agritech forecasts modest revenue uptick in third quarter, driven by volume growth
Mahendra Kumar Dhanuka, Vice Chairman and Managing Director of the company, said the third quarter so far has not been as good as expected due to the late harvesting of crops.
Dhanuka Agritech anticipates single-digit growth in the upcoming third quarter, with volume growth at 4-5%.
Mahendra Kumar Dhanuka, Vice Chairman and Managing Director of the company, said the third quarter so far has not been as good as expected due to the late harvesting of crops. Agrochemical prices have also been dropping month-on-month, he said.
However, Dhanuka expects the demand to start improving in December.
"...value-wise, due to the reduction in prices, we don't foresee any significant growth in the third quarter," he said.
In the second quarter of the fiscal year 2023-24, the Gurugram-based company reported revenue of ₹618 crore. The EBITDA (earnings before interest, taxes, depreciation, and amortisation) was at ₹142 crore, translating to a margin of 22.9%. The profit after tax (PAT) for the quarter was at ₹102 crore.
Dhanuka expects the gross margin to improve by around 150 basis points this year and the EBITDA margin to expand by 100 basis points.
The market capitalisation of Dhanuka Agritech is ₹4,115 crore and it competes with industry rivals such as Bayer Cropscience, Rallis India and Bharat Rasayan.
(Edited by : Shweta Mungre)
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