• Sharda Cropchem Limited is an agrochemicals company. The Company is engaged in the marketing and distribution of a range of formulations and generic active ingredients around the global.

• Sharda Cropchem revenue decline of 19% YoY in Q3’20. The gross margins declined 17% led by continuing weakness in North American (NA) markets.

• Impact in Q4 FY20 may be limited though given the implementation timelines and reversal in weather related impact in core markets at least in one. FY20 witnessed both core regions (Europe & US) facing weather related challenges.

• However, FY21 expected to be better led by margin benefits accruing from reduction in raw material costs – first signs of cost reduction from the peak has emerged led by new capacity coming on-line/revival of shutdown plants and improved North American market conditions led by US/China trade deal ( first phase of the deal augurs well for US agri exports to China)

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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