According to reports from Business Standard, Dhanuka Agritech Ltd. reported a subdued set of June-quarter earnings with net profit falling 34.59% to ₹36.30 crore from ₹55.50 crore a year earlier. Revenue declined 12.56% to ₹461.93 crore, down from ₹528.29 crore in the corresponding quarter last year. EBITDA dropped 30% to ₹63.06 crore, resulting in EBITDA margin narrowing to 11.9% from 15.75% in the previous year. The weak performance was attributed to lower demand at the start of the kharif season.
As reported by CNBC TV18, shares of Dhanuka Agritech Ltd tumbled over 9% from an intraday high of ₹1,038 to a low of ₹943.30 before recovering some losses. The stock was trading at ₹1,009.50, down 1.2%, on the NSE as of 2:32 PM. The significant market decline reflected investor concerns over the company's weak quarterly performance despite management's optimistic outlook. Latest trading data shows the stock opened at ₹1,019.00 with a previous close of ₹1,021.90, reaching a high of ₹1,049.50 and low of ₹943.30 during the session.
According to CNBC TV18, despite the weak quarterly performance, the company's board approved an investment of up to ₹200 crore to establish a new pesticide manufacturing facility in Nagpur, Maharashtra. The proposed plant is expected to strengthen Dhanuka's manufacturing capabilities and support future growth as demand for crop protection products expands. This investment signals management's confidence in the sector's long-term prospects despite current challenges.
As reported by CNBC TV18, Chairman M.K. Dhanuka maintained that the weakness in demand is likely to be temporary, expecting business momentum to improve as the monsoon advances and sowing activity gathers pace across the country. He noted that dealers have remained cautious with fresh purchases after recent price increases, but inventories currently held by the company are expected to gradually move into distribution channels once agricultural activity picks up. Dhanuka also downplayed concerns over the India Meteorological Department's forecast of rainfall at around 92% of the long-period average, arguing that overall distribution and timing of rainfall would matter more than the headline number.
