There was a recent interview with Sharda cropchem management who said that the currency losses they had faced in H1 are likely to reverse due to increasing Euro vs USD. If we look at Euro vs USD, Euro has recovered somewhat in the last 30 days.
More importantly, their nos are Q4 heavy. If Euro keeps on strengthening, not only will H1 losses reverse, but they will be benefitted from higher revenues in H2FY23. Lets see how future unfolds. Notes below.
- Euro is recovering against USD, H1 currency losses of 82 cr. are notional in nature and should reverse if Euro keeps on strengthening
- In constant currency, they had 20% growth in H1FY23
- Agchem sales are growing very well in Europe and USA
- Non-agchem products are doing better than agchem in terms of sales and margins
- Capex will be ~450 cr. in FY23 and will be maintained in 400-500 cr. in next 2-3 years
Disclosure: Invested (position size here, bought shares in last-30 days)