DHANUKA - Dhanuka Agritech Ltd. Share Price

1. Question from Darshita Shah: "My first question was regarding the second product that we are manufacturing at the Dahej plant. If you could share which product this is? And what size are we expecting this to reach over the next few years?"

Answer: The second product we are manufacturing is Difenoconazole. We have started trial production and expect to scale it up as we stabilize the process. While we're currently limiting its potential to India due to competitive pricing from China, we anticipate a market potential of close to 200 metric tons for this molecule in India.

2. Question from Darshita Shah: "And for both Bifenthrin and Difenoconazole, the margins will be around -- I mean, once the scale-up is done, what kind of margins do you expect?"

Answer: We expect to maintain similar margins for both Bifenthrin and Difenoconazole as we currently have in our portfolio. The margin structure is solid, and we anticipate no significant deviation from our existing margins.

3. Question from Viraj: "Can you give the breakup of domestic B2C sales and sales from B2B business, Dahej in the quarter, both sales and EBITDA?"

Answer: Dahej sales were around INR22 crores, showing a nominal EBITDA loss of approximately INR46 lakhs for the quarter. Dahej is still developing, but we are focusing on it to enhance profitability in the future.

4. Question from Rohit Nagraj: "In terms of EBITDA margins, given that earlier we had indicated some slippage, do we stick to that guidance? And will the margin decline be more pronounced based on H1 performance?"

Answer: Yes, we are revising our EBITDA margin guidance to indicate approximately a 100-basis point decline. We are seeing the impact from previous extraordinary figures, and we remain cautious about maintaining stable margins in light of current conditions.

5. Question from Archit Joshi: "Given that the first half has been flattish, and conditions improve for H2, should we not be more optimistic about growth?"

Answer: While we expect H2 to be better due to favorable conditions, recent rains delayed some kharif harvesting. Thus, while optimism exists, it's balanced with caution about potential impacts on immediate farmer investment sentiments.

6. Question from Himanshu Upadhyay: "What is the progress on the two brands acquired from Bayer, and by when do you think you can start manufacturing the product in India?"

Answer: We plan to manufacture Iprovalicarb in India, with production set to begin in FY '27. The groundwork is being laid, and we are optimistic about the timeline as we navigate through the integration.

7. Question from Riju from Antique Stock Broking: "In terms of Bayer products revenue in the Indian market for H1, if you could indicate that number?"

Answer: Bayer molecules contributed around INR25 crores in the first half of the financial year. For the overall year, we are still targeting around INR100 crores, although we may adjust downward due to registration delays in various countries.

8. Question from Bharat Gupta: "What has been the sales return during the quarter?"

Answer: Sales returns have increased to about 13.5% of total sales compared to previous years. This uptick primarily resulted from adverse weather conditions affecting product movement and sales, particularly in the herbicide segment.

These summaries encapsulate the key questions and detailed responses from the earnings call's Q&A section while adhering to the constraints of character count and content detail.