Company Performance
• Challenging Conditions: Management discussed performance amid geopolitical issues and rising inflation.
• Revenue Figures:
• 9M FY '23: INR 10,655 million
• Q3 FY '23: INR 2,802 million (down from INR 3,954 million previous year)
• EBITDA Margins: Affected by high raw material and energy costs.
Capital Expenditure
• Plans: Total capex for FY '23 revised to INR 110-120 million (down from INR 150 million).
• Sales Ratio: Domestic to export sales shifted to 49:51 in Q3 FY '23.
Future Outlook
• Growth Prospects: Management optimistic about future growth, focusing on product diversification and distribution enhancement.
• China Market:
• Orders from China are increasing, but pricing pressures persist.
• Anticipated recovery in demand post-Chinese New Year.
Capacity and Product Development
• Capacity Utilization:
• Technical plants: 85-90%
• Formulations: 55-60%
• Product Pipeline: 10-12 products under evaluation, potential revenue of 1x to 1.5x investment in the first year.
Revenue Guidance and Market Conditions
• Revenue Projections: Aiming to match last year's turnover, targeting INR 1,850 crores next year.
• Domestic Technical Revenue: Significant year-over-year drop due to price and volume declines.
Analyst Inquiries
• Revenue Expectations: Aiming to match last year's revenue with stronger Q4 performance anticipated.
• Margin Concerns: Declining margins attributed to increased raw material and energy costs (20-30%).
• Geographical Sales: Asia Pacific leads in exports, followed by Africa and the Middle East.
Tax Rate and R&D
• Effective Tax Rate: Expected to stabilize around 24-25% due to depreciation benefits.
• R&D Expenses: Currently around 1% of revenues, may increase to 1-2% in the future.
Additional Notes
• Biopesticides: Still in planning stage; minimal exposure to glyphosate.
• Product Updates: Ongoing work on cypermethrin and beta-cypermethrin products.
Conclusion
• Management expressed gratitude to participants and maintained a conservative yet hopeful outlook for demand and revenue growth in the upcoming fiscal year.

Financial Performance
• Revenue: INR 10,655 million for 9M FY '23; Q3 revenue at INR 2,802 million (down from INR 3,954 million YoY).
• Profit After Tax (PAT): INR 144 million in Q3, compared to INR 535 million previous year.
• EBITDA Margins: Squeezed due to rising raw material and energy costs.
Market Challenges
• Demand: Lower domestic demand and export volatility due to global macroeconomic conditions.
• Seasonal Focus: Q3 faced challenges with low demand, particularly for herbicides; Q4 expected to see increased demand for insecticides and fungicides.
Growth and Expansion Plans
• Capital Expenditure: Progressing with plans, particularly for the Sarigam facility, expected to reach 70% capacity by September 2023.
• Revenue Growth Target: Aiming for 18% to 20% growth in FY '24, with expectations of pent-up demand from China.
• Product Pipeline: Approximately 10-12 products in development, with 30 new registrations secured in the quarter.
Operational Insights
• Capacity Utilization: 85-90% for technical plants, 55-60% for formulations.
• Revenue Split: 70-75% from insecticides, 20% from fungicides, 5% from herbicides.
Sales Performance
• Turnover Decline: December noted as the worst month; 5-7% decline in turnover for October and November.
• Market Conditions: Previous growth guidance of 15-17% not met due to unpredictable market conditions and excess inventory.
U.S. Market Expansion
• Revenue Target: Aiming for $25 million in revenue from the U.S. by FY '25, currently at INR 25 crores.
• Product Registrations: Two registered products in the U.S., with plans to expand to six or seven.
Regulatory Concerns
• Product Bans: Reassurance that deltamethrin is unlikely to be banned; minimal revenue impact from acephate and glyphosate.
Conclusion
• Management Outlook: Optimistic about long-term growth through new product offerings and geographical expansion despite current challenges.