Dhanuka Agritech Ltd. expects raw material prices to remain stable in the ongoing financial year, according to its Managing Director MK Dhanuka.
“The prices of raw material are stable and have come down for certain molecules,” he told BloombergQuint. “We hope financial year 2019-2020 to be normal year (for raw material prices).”
The maker of agricultural chemicals imports 25 percent of its total raw materials from overseas.
“The previous quarter was impacted by high inventory levels, majorly because of the drought conditions in Karnataka, Andhra Pradesh, Telangana and Tamil Nadu,” Dhanuka said, adding that the company had an inventory pile up of about Rs 210 crore in the March-ended quarter. He, however, said the levels are within control.
Q4 Earnings Highlights (YoY):
- Revenue rises 4 percent to Rs 193 crore
- Net profit falls 7 percent to Rs 27 crore
- Ebitda up 5 percent at Rs 33 crore
- Margin expands by 10 basis points to 17.1 percent
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