NATHBIOGEN - Nath Biogene India Ltd. Share Price

Question: "What were the main contributors for the 21.3% Y-o-Y growth in gross profit?" Answer: "The main contributors to our gross profit growth were primarily rice and cotton, with maize adding to the total, reflecting strong demand and improved price realizations for these crops."

Question: "With cotton and paddy contributing 74% of revenue, how do you see the mix evolving in the future?" Answer: "We're aiming to achieve a 60-40 balance between Kharif and Rabi crops. However, given the rising demand for cotton and paddy, it may remain approximately 70-30. H2 will see contributions from vegetables and mustard."

Question: "What steps are you taking to improve operational efficiency to enhance your EBITDA margin?" Answer: "The EBITDA margin has compressed primarily due to increased marketing incentives to boost sales, not operational inefficiency. As marketing stabilizes and new products are introduced, we expect to improve margins as customer credits will decrease."

Question: "How do you expect the working capital levels to trend for the rest of FY '26?" Answer: "We anticipate working capital levels to stabilize or increase slightly due to inventory management for Kharif '26. We also expect a reduction in debtors through recoveries and adjustments from advanced bookings, maintaining a manageable level."

Question: "What caused the decline in bajra volumes? And when do you expect improvement?" Answer: "The decline in bajra volumes was marginal, around 5-6%, primarily due to erratic rainfall patterns. With government initiatives focusing on bajra, we expect a significant recovery as conditions improve."

Question: "What are the key strategic priorities for the company in H2 FY '26 and FY '27?" Answer: "Our priorities include continuous product innovation, ensuring quality and farmer satisfaction, timely product placement to reduce returns, and enhancing our product mix to improve profitability while managing operational efficiency across all segments."

Question: "Have you seen any cost increases in the cost of production for cotton?" Answer: "Yes, the cost of production has been rising consistently by about 5-10% annually. We can manage this with margins from other crops beyond cotton, which has its price controlled by the government, limiting our margin expansion."

Question: "How do you view industry's long-term demand fundamentals over the next 2 to 3 years, considering GM might enter into Indian markets?" Answer: "The entry of GM seeds isn't guaranteed, and while permitting GM seeds for cultivation remains a regulatory challenge, we continue to enhance our offerings. Therefore, we remain optimistic about the long-term demand fundamentals based on innovation."

Question: "What guidance can you provide on revenue for the upcoming quarters?" Answer: "We are targeting around 15% growth over the last year. We intend to maintain this target as we move forward, focusing on achieving consistent growth in revenue, backed by operational enhancements and product launches."

Question: "How is the company progressing in Philippines?" Answer: "Currently, our operations in the Philippines are on hold due to delays in government permissions. We are investing time in securing these permissions, but no financial investments are being made at this time."