*Sharda Cropchem Ltd Q3FY25 Concall highlights* *CMP: INR 611 | Market Cap: INR 55.2 Bn* * Companies’ revenue increased by 47% YoY to INR 929 crore in Q3 FY25, driven by 49% overall volume growth, targeting annual revenues of ₹4,000 crore for FY25. * Gross Margins Improved significantly by 660 basis points YoY to 32.7% due to raw material price stabilization. * EBITDA grew by 232% YoY to INR 157 crore, with margins at 16.9%. PAT for Q3 stood at ₹31 crore, compared to INR 4.6 crore in Q3 FY24. * Management has maintained EBITDA margin guidance for FY25 at 15–18%. * Margins in Q3 FY25 were impacted by the depreciation of the euro, resulting in foreign exchange losses * Non-agrochemical Margins are consistently strong, now at 20%+ despite a challenging market conditions. * The company’s capital expenditure (CapEx) for the first nine months of FY25 amounted to INR 2680 Mn, with a full-year CapEx projection of INR 4000–4500 Mn. * Working capital days reduced by 60 days to 98 days as of December 31, 2024 * Company identifies Europe, LATAM, and NAFTA as key growth regions for agrochemicals. * Total product registrations stood at 2,948 as of December 31, 2024, with an additional 1,047 registration applications pending global approval. * The company remains net debt-free, with cash and investments totaling INR 742 crore. * The company continues to gain market share globally, with minimal competition from Chinese players in the near term * Herbicide Segment performed exceptionally well in Q3, with robust growth * Prices remain below their peak levels from two years ago but are gradually recovering, with steady improvements in agrochemical pricing * A revival in agrochemical demand is driving growth, with global demand particularly strong in LATAM and Europe *Outlook:* The company is on track to achieve its INR 4,000 crore revenue target for FY25, supported by strong volume growth and geographic expansion in Europe, LATAM, and NAFTA. With stabilizing raw material prices and robust non-agrochemical margins, it aims to sustain profitability while maintaining efficient working capital and executing planned CapEx for future growth *Arihant Capital Markets Ltd*