Submission Details
• Date of submission: June 6, 2024
• Compliance with SEBI regulations
• Transcript available on the company's website
Key Management Participants
• Chairman: Ramesh Talavia
• CFO: Vinay Joshi
Company Performance Highlights
• Successful commissioning of the Sayakha plant (operational since January 2024)
• Initial production capacity: 200 metric tons/month
• Market expansion in South India
• Optimism for growth in exports and product registrations
Financial Overview
• FY23 financial statement restatements due to audit by MSKA & Associates
• Adjustments: Rs. 6.25 crore (consulting fees), Rs. 9 crore (revenue recognition)
• Q4 sales growth: 69% year-on-year
• FY24 overall growth: 25%
• Profitability challenges due to higher costs
Future Projections
• Breakeven expected at 40% capacity utilization
• Sales target: Rs. 200-220 crores
• Export growth target: Increase from 9% to 10-15% in coming years
Plant Utilization and Sales
• Current capacity utilization: 30%
• Revenue expectations from new plant: Rs. 150 crores in the first year, Rs. 200-220 crores in the second year
• Initial margin improvement projected: 1-1.5%
B2C Business Insights
• Decline due to weak monsoon and pricing confusion
• FY25 growth target: 25% with revenue guidance of Rs. 900 crores and PAT of Rs. 65 crores
Investment and CAPEX Plans
• Total investment in Sayakha plant: Rs. 275 crores
• No major CAPEX planned for the next 2-3 years
Revenue Expectations and Cash Flow
• FY24 revenue projection: Rs. 650 crores
• Target EBITDA margin: 11%
• Cash conversion cycle: Increased to 80 days, expected to normalize to 85-90 days
Market Conditions and Product Development
• Raw material costs stable; initial overheads to be managed
• New products: Five Synthetic Pyrethroids and non-Synthetic alternatives
• Competitive production costs anticipated
Growth Sustainability and Strategy
• Targeted 25% growth in formulation business over the next three years
• Expected improvement in EBITDA margins from 11% to 14%
Industry Positioning
• Successful market entry in the Synthetic Pyrethroid sector
• Competitors facing challenges, creating opportunities for growth
Debt Management
• Current debt cost: ~9%, with plans to reduce to 3-3.5%
• Aim to become debt-free in the coming years
Conclusion
• Management committed to growth and improved margins from the new operational plant.

Revised Transcript
• Issued on November 8, 2023, due to translation discrepancies.
• Aimed at ensuring accuracy and transparency in compliance with SEBI regulations.
• Available on the company's website.
Financial Performance Highlights
• 14% year-on-year revenue growth.
• Strong institutional business.
• Updates on the Saykha project nearing commissioning.
Saykha Project and Capital Expenditure
• Second plant expected to stabilize by Q3 and commence commercial production in Q4.
• Anticipated utilization of 10% for the current year, with full utilization by FY26.
• CAPEX increased to INR 220 crores due to rising costs and advanced machinery.
Export Orders and Inventory Management
• Delays in Q1 export orders led to an estimated spillover of INR 5-7 crores into Q2.
• Effective inventory management and B2B expansion strategy highlighted.
Receivables and Operational Efficiency
• Increased receivables attributed to higher B2B formulation sales.
• Management confident in handling the new manufacturing plant with established infrastructure.
Growth Prospects and Product Strategy
• Branded formulation segment saw a 5% increase despite erratic weather.
• Plans to launch five to six new products by December, focusing on both new and generic products.
Market Expansion and Revenue Goals
• Main markets in Maharashtra and Gujarat, with plans to expand into North and South India.
• Targeting a 20% year-on-year growth for the financial year.
New Product Strategy and Financial Outlook
• Plans to import key raw materials while locally sourcing smaller components.
• Projected fixed cost for the new plant around INR 50 crores for FY '25, with expected sales of INR 150 crores.
Cost Optimization and Future Engagement
• Management committed to ongoing cost optimization efforts.
• Invitation for further questions and engagement at the conclusion of the call.

Earnings Performance
• Revenue Growth: 14% year-on-year increase to INR 2,527 million.
• Branded Business: Modest growth of 5% due to monsoon deficit.
• Institutional Business: Strong growth of 14%.
Saykha Project Update
• Commissioning Status: Nearing completion with increased capital expenditure expected (projected cost around INR 220 crores).
• Efficiency Improvements: New machinery to enhance operational efficiency.
Strategic Insights
• Growth Strategies: Focus on small customers and entry into larger corporate clients (e.g., Rallis, Coromandel).
• Inventory Management: Unique procurement model to navigate industry challenges.
Financial and Operational Concerns
• Receivables Increase: Attributed to seasonal sales patterns.
• B2B vs. B2C Receivables: No significant difference in credit terms.
Product Development and Market Expansion
• New Product Registrations: Licenses obtained for CTPR; plans for multiple product launches.
• Farmer Engagement: Over 300,000 farmers served through demand generation and demonstrations.
Capital Expenditure and Future Projections
• New Plant Economics: Expected revenue of INR 800 crores by 2027 with a 3-4% increase in EBITDA margins.
• Operating Costs: Fixed costs for the new plant projected at INR 50 crores for FY '25.
Regional Expansion Plans
• South India Operations: Currently not operational; strategy to grow customer base and introduce new products.
• North India and Maharashtra: Establishing presence with no new product launches planned for the upcoming quarter.
Cost Optimization and Future Outlook
• Capex Strategy: One-time expenditure for long-term stability; no further capex planned for 8-10 years.
• Continuous Improvement: Acknowledgment of the need for ongoing cost optimization efforts.
Conclusion
• Stable Growth Outlook: Driven by seasonal factors and recent investments, with a focus on expanding product offerings and market presence.

Company Overview
• Date of Call: May 17, 2023
• Submission: Transcript submitted to BSE and NSE on May 20, 2023
• Key Management: Chairman Ramesh Talavia discussed company growth since 2015 and recent IPO for a new manufacturing plant.
Financial Highlights
• Revenue: Rs. 534 crores with a 40% CAGR over five years.
• Q4 FY23 Performance:
• Revenue: Rs. 536 crores (35% growth)
• EBITDA Margins: Decreased from 11% to 9%
• PAT: Grew by 15% to Rs. 33 crores
• Challenges: 25% reduction in price realization due to global supply chain issues.
Future Strategies
• Expansion Plans:
• Focus on branded formulations and backward integration.
• Increase export activities.
• New Plant: Expected operational by Q3 FY24, supporting internal and third-party production.
Product Development and Market Strategy
• New Product Introduction: Continuous introduction of new molecules to maintain growth.
• Market Dynamics: Emphasis on aligning pricing with market conditions to sustain margins.
• Branded Formulation Expansion: From six to a PAN India presence.
Margin and Capacity Expectations
• Gross Margin Expansion: 500-basis point increase in Q4.
• Future Margin Projections: Anticipated margins around 20-21%.
• Capacity Utilization: Formulation plant expected to operate at 60-65% in FY24.
Capital Expenditure and Project Updates
• Investment for New Plant: Increased to ₹200 crores; ₹120 crores already spent.
• Revenue Projections: New project expected to generate ₹450 crores with over 20% EBITDA margin once fully operational.
Growth Trajectory and Market Focus
• FY24 Growth Rate: Expected 35-40% CAGR.
• Export Focus: Targeting Asia Pacific, Middle East, Africa, and registration for Europe, Brazil, and the USA.
Long-term Vision
• Target: Grow into a ₹2000 crore entity.
• Active Ingredients Strategy: Focus on synthetic pyrethroids and diverse product offerings to mitigate dependence.
Conclusion
• Future Outlook: Management confident in growth strategies and market positioning, inviting further inquiries from participants.