- Growth Forecast: Dhanuka Agritech expects low double-digit growth for Q2 FY25 despite challenges from adverse weather conditions, which have affected pesticide application and sales.
- Full-Year Guidance: The company maintains its full-year growth guidance of 18-20% but anticipates a slight decrease in EBITDA margins for FY25.
- Share Buyback: Dhanuka Agritech has announced a ₹100 crore share buyback program at ₹2,000 per share, starting August 22, likely to be the last before new tax regulations in October.
- Financial Stability and Future Investments: With over ₹250 crore in cash, the company is well-capitalized and plans no immediate fundraising. Future investments, particularly in the Dahej plant, may hinge on a partnership with a Japanese company, with the plant expected to break even by FY27.
Dhanuka Agritech forecasts a low double-digit growth for the second quarter of FY25, despite facing adverse weather conditions.
Continuous rains and floods have hindered farmers’ ability to apply pesticides, impacting sales in August. Chairman Mahendra Kumar Dhanuka expressed hope for improved weather conditions to meet growth targets by the end of September.
The company has maintained its full-year growth guidance of 18-20% but expects a slight decline in EBITDA margins for FY25.
Additionally, Dhanuka Agritech has launched a ₹100 crore share buyback program at ₹2,000 per share, set to open on August 22. This buyback, approved on August 2, is anticipated to be the last before new tax regulations take effect in October.
With over ₹250 crore in cash, the company is well-capitalized and has no immediate fundraising plans.
Future investments, particularly in the Dahej plant, may depend on a potential partnership with a Japanese company. The Dahej plant is projected to break even by FY27.
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