Sharda Cropchem Limited ($SHARDACROP)

Ladies and gentlemen, good day, and welcome to Sharda Cropchem Limited Q4 FY '26 Earnings Conference Call hosted by Antique Stockbroking Limited. [Operator Instructions] Participants please note that this conference call is being recorded. I now hand the conference over to Mr. Riju Dalui from Antique Stockbroking Limited. Thank you, and over to you, sir.

Thank you, welcome to all the participants on Q4 and FY '26 Earnings Call of Sharda Cropchem. Today, we have Mr. R.V. Bubna, Chairman and Managing Director; Mr. Shaileshji, CFO; and Mr. Jetkin Gudhka, Company Secretary on the call. Without any delay, I would like to hand over the call to Mr. Bubna for his opening remarks. Thank you, and over to you, sir.

Thank you, Mr. Dalui. Good afternoon, and very warm welcome to everyone present on this call. Along with me, I have Mr. Shailesh Mehendale, our CFO; and Mr. Jetkin Gudhka, our Company Secretary; and SGA, our Investor Relations advisers. Hope you all have received our investor deck by now. Ladies and gentlemen, I'm very pleased to share that FY 2025, '26 has been by every measure, the best year in Sharda Cropchem's history as a listed company despite the global headwinds from tariffs and recent war. We have delivered our best ever annual PAT, our highest ever EBITDA and our strongest ever revenue performance. And this has been achieved with consistent discipline quarter after quarter through a year that presented both opportunities and challenges for global agrochemical industry. The company expects this growth momentum to continue in the FY 2027. Our performance is the result of years of patient investment in product registrations, a clear and focused business model and the confidence that our customers and suppliers continue to place with Sharda Cropchem. I thank every -- each member of our team for their dedication and each of you for this call for your continued interest and trust. As you are aware, we are engaged in the marketing and distribution of wide range of agrochemical products catering to a diverse global customer base. We developed comprehensive dossiers and obtained product registrations in our own name. We continue to allocate substantial resources towards securing registrations, which strengthens our market presence and helps establish a sustainable foothold across the markets. As on 31st March 2026, our total product registration stood at 3,011. Additionally, 1,004 applications for product registrations globally are in the pipeline. Coming to the industry dynamics, a global agrochemical market is showing signs of recovery driven by revival in demand, complemented by gradual recovery in the pricing. Inventories have come to normal levels across distribution channels. In Q4 '26, our total revenues have grown by 13% to INR 2,065 crores with annual volume growth at 4%. We have seen volume growth in Europe and LatAm emerging as key contributors. Volume from agrochemical segment grew by 5% and nonagrochemical segment degrew by 2% year-on-year basis. Our gross margins have expanded by 750 basis points to 37.3%. As guided earlier, we expect the gross margins to be in similar range in FY '27. EBITDA for the quarter stood at INR 513 crores, which is a growth of 75% on Y-to-Y basis with margins of 24.8%. For FY '27, we are on track to maintain healthy EBITDA margins in the range of 18% to 20% PAT for the quarter stood at INR 319 crores, showcasing a growth of 57% year-to-year basis. Working capital days stood at 98 days as on 31st March 2026, showing an improvement by 20 days as compared to March 2025. CapEx for FY '26 stood at INR 505 crores. Looking at the performance, the Board of Directors have recommended a final dividend of INR 9 per equity share, along with the interim dividend of INR 6 per equity share paid in December 2025. The total dividend for 2026 -- FY '26 is aggregates to INR 15 per share. With this brief overview, I now like to hand over the call to our CFO, Mr. Shailesh Mehendale, for discussing our financial performance. Thank you, everybody. Thank you once again.

Thank you, sir. Good afternoon, everyone. Coming to quarter 4 FY '26 performance, revenue stood at INR 2,065 crores in quarter 4 FY '26 versus INR 1,829 crores in quarter 4 FY '25 with an increase of 13% year-on-year. Coming to the split, agrochemical business grew by 14% year-on-year basis to INR 1,927 crores, whereas the nonagrochemical business degrew by 0.3% year-on-year to INR 138 crores. Gross margin stood at 37.3% in quarter 4 FY '26 as against 29.8% in quarter 4 FY '25 with an increase of 750 basis points. EBITDA grew by 75%, which stood at INR 513 crores with EBITDA margin at 25%. PAT stood at INR 319 crores versus INR 204 crores last year, showing a 57% growth year-on-year basis. Coming to the full year financial year '26 performance, revenue stood at INR 5,268 crores in FY '26 versus INR 4,320 crores in FY '25 with an increase of 22% year-on-year basis. Coming to the split, agrochemical business grew by 25% year-on-year to INR 4,717 crores, whereas the nonagrochemical business grew by 1% year-on-year to INR 551 crores. Gross margin stood at 35.9% in FY '26 as against 29.9% in FY '25, increase of 600 basis points. EBITDA for FY '26 stood at INR 1,040 crores with an EBITDA margin at 19.7%, showcasing 69% year-on-year growth. PAT stood at INR 681 crores in FY '26 versus INR 304 crores in FY '25 with an increase of 124% on a year-on-year basis. We remain debt-free company and have cash bank liquid investment of INR 702 crores as on 31st March 2026. We can now open the floor for question and answers. Thank you.

[Operator Instructions] The first question is from the line of Anubhav Mukherjee from Prescient Capital.

Congrats on the great results. My first question is that for the current quarter, the revenue growth was 13% and volume growth was 4.3%. Can you please share like what was the contribution of ForEx and realization gain year-on-year for the current quarter?

Mr. Mukherjee, your first sentence was clear and loud. But second and third sentences have become very dim. So can you repeat the second and third sentences of your question once again?

Sure, sir. Sir, I was asking that for the current quarter, Q4 FY '26, the volume growth was 4.3% and revenue growth was 13%. Can you share the contribution of like realization increase and ForEx year-on-year for the current quarter?

Yes, sir. Sir, please don't confuse the people. Current quarter is April to June FY '27. You are talking about the last quarter. So let us say last quarter and not the current quarter. Anyway, the volume growth for the fourth quarter was 4.3% plus ForEx impact was plus 11.7%. Price and product mix impact was minus 3.0%. Total growth was plus 12.9%. Thank you.

And sir, can you please share the same for the entire financial year?

Yes, please. For the entire financial year, the volume growth was 13.4% FX impact was plus 10.3%. Price and product mix impact was minus 1.8% and total growth was 21.9%.

Sir, we have been hearing that prices of agrochemicals from China have been witnessing like a major spike since like the war broke out in Middle East. So are we also witnessing like a major increase in our procurement price from China?

No, sir. I would clarify there is no major increase. There could be a small increase in some products, but it's not an overall trend as of now, up to now.

And sir, the realization and product impact was negative, as you mentioned, for the current quarter. Sir, can you please share what are you witnessing like in terms of price realization in your major markets like LatAm and NAFTA and Europe?

There is nothing to worry. The prices have been stable, and there has been a slight increase in the prices.

And sir, can you please share the guidance for the revenue growth for the FY '27 and also specifically for each of the regions?

See, each of the regions, it will be not proper for me to elaborate because it all depends on many factors, which are not in anybody's control, particularly weather and the current war situation and all those things. But I can say for the FY '27, we expect the revenue to grow about 10% to 15% gross margins to stay around 35%, plus or minus a few percent and EBITDA will be 18% to 20%.

Mr. Mukherjee, could you return to the question queue? We have participants awaiting their turn. The next question is from the line of Disha from Sapphire Capital.

Am I audible, sir?

Yes, madam.

Congratulations, sir, for a great set of numbers despite the challenging geopolitical environment. So my question was again on the margin as we guided for gross margins to be around 35% and EBITDA of 18% to 20%. So what is giving us the confidence of being able to sustain the margins in the back of such volatile environment? And any raw material price increase, will we be able to pass this on completely to customers? If you could just elaborate a bit more on that, that will be really helpful.

Madam, you have put 3 questions in -- please ask one by one. I'll answer you that will be more precise. Can you repeat your questions one by one?

So firstly, sir, if you could just highlight what is giving us this confidence of being able to maintain high margins in such volatile environment?

Madam, our feel of the market, our communications with our customers on a regular basis and the general situation. That gives us this confidence.

Okay. And sir, this raw material price hikes, will we be able to completely pass this on to the customer? What is the situation there?

Normally, we are able to pass because the competition is limited. We are not dealing with the products which are freely tradable and the registration process is very expensive and time consuming and not very interesting to most of the investors. So the competition is also limited for the agrochemical products, particularly in developed markets, and that gives us a confidence that -- and so far, it has been our experience 80% to 90%, we have been able to pass the price increase of the raw materials and the customers have very gracefully accepted it. Unless there's a unique situation where there's a lot of product in the pipeline and in the sort of storage, those are only special. But in the normal cases, most of the price increases we are able to pass on to our customers.

Okay. That is great to know, sir. Sir, and the next thing was on our revenue growth. So in our interview on television, we had mentioned this year, we're targeting 18% to 20% sort of growth. And this -- and right now, you just mentioned that we are targeting 10% to 15%. So is this -- are we being too conservative? How should we look at that?

If I said 18% to 20%, then maybe I misstated it. I would say it will be 10% to 15%. I was talking about EBITDA, 18% to 20% was EBITDA and not the revenue growth.

Okay. So 10% to 15% is what we should work with, right?

Yes.

Yes. Okay. And just the last question, sir, I was looking at the segmental breakup in the agrochemical sector, particularly in the NAFTA region, I think we've seen some revenue degrowth of by 6%. So what was the cause for that?

No specific cause. It would be based on the weather conditions and the economic situations in the United States.

Okay. But no major challenge as such?

No.

The next question is from the line of Rajat Sethia from ithoughtPMS.

Can you hear me?

Yes. Yes. Please go ahead.

So sir, my first question is about the gross margins. So if we remove the impact of ForEx volatility, what would be the gross margins for the company for the whole year?

Sir, I have stated it will be around 35%. It could be 36%, 37%, it could be 34%.

No, sir. Sorry, I didn't mean for the next year guidance. Like this year, we have reported 36% gross margins. And there's a lot of contribution from ForEx exchange movement as well. So I'm just wondering if we strip off the ForEx movement from the numbers, what will be the gross margins?

Sir, this will require some calculations, which I'm not ready during this phone call.

Sure. I understand. So is it possible to touch base on this point later on through the Investor Relations team or by any other means?

Yes. It is possible.

Sure, sir. I will touch base on this later on. And sir, what was the gross margins in Europe in this quarter as well as the full year?

One minute. The gross margins in Europe was 41.5% in this quarter and the whole year, it was also 42.5%.

And sir, what was the volume growth in Europe in FY '26 full year?

Volume growth was about 16%.

16%. And in terms of the outlook for next year for Europe, do you see similar growth or?

Yes.

Okay, similar growth?

No, we see the similar.

Okay. Understood. Sir, one question about the ForEx losses that we reported in Q4. So if we look at the USD, EUR, euro movement during the last quarter, it was pretty much in a very tight range of 1.15 to 1.7. And yet we reported INR 26 crores of ForEx losses. So I was just confused or if you can help us understand despite such a tight movement between USD and euro, there were still losses on ForEx side?

I would request Mr. Shailesh Mehendale, our CFO, to answer this question.

Yes. So this particular ForEx loss, which is reported in quarter 4 is mainly on account of unrealized ForEx loss on the realignment of foreign currency trade payables, right? So that is the only -- this is unrealized loss, which is accounted. The euro-USD movement is not really that movement. There is no -- but this is on account of the realignment of USD realignment loss.

Mr. Rajat, I'll elaborate here. These losses are calculated for the exchange rate, which is there on the last day of the quarter. This does not reflect the total trend. The last year, there could be many reasons and that becomes a key factor. After 2 days, the situation may change if the dollar euro exchange rate changes. So all this is an unrealized loss. It is not actual loss. Understood?

Got it, sir. And sir, what was sales return during full year?

Sales return was not very significant. I'm not ready with this information because it was not so significant.

Sure. And sir, if you can help us understand nonagrochemical segment a little bit. The whole year, we grew by probably 1% or so. So what's happened in that segment if you can elaborate please.

I think I'll turn to some other speaker. You had many questions, rejoin the queue for the next round.

The next question is from the line of Riju Dalui, Antique Stockbroking.

So my question regarding your top line revenue growth. So you are guiding 10% to 15% top line growth. But if you look some of the technical prices.

Mr. Dalui, can you speak a little slowly and a little more loudly because we are not able to get your questions, slowly and loudly.

Okay, sir. Is it audible now?

Now it is more audible, more clearer. Audible was before also.

So my question regarding the top line growth guidance for FY '27 that we are guiding 10% to 15% kind of top line growth. But if you look at in terms of prices for the agrochemical, prices of agrochemical increased by 10% to 15% on a sequential basis. So are we expecting only price-led growth and volume growth will be lower? How we are guiding 10% to 15% top line growth? So that I wanted to understand.

Mr. Dalui, I am not doing all the detailed calculations. I have given you my impression and the feeling that we have about the financial year 2027. All these are just impressions. They can change, and this is just my impression as on today.

Understood. And one question for Shaileshji. So how much tax rate you can work for '27 and '28? Because if I look at last 2 years' tax rate as per the PBT, that was roughly 20%. So now how much you can work it?

Yes. So the effective tax rate could be between 18% to 20%.

18% to 20%.

Yes. 18% to 20% because globally, we are having different tax rates applied.

The next question is from the line of Vivek Gautam from GS Investment.

Congratulations on a very good set of numbers. My question is, sir, ours is an IP-led moated business with registration not getting registration is not that easy. But still sort of trading we are getting -- being treated like a trading company and how to counter that and it has been a very hard work of yours for the last so many years so that we have been able to reach to this level. So how can you counter that impression that it's not a trading company. It's an IP-led moated business, sir. And second thing was -- yes, first question is this.

Sir, I -- who said that we are treating as a trading company. My always statement that we are a marketing company. And for this marketing, registration is the most important and strong requirement to market the products. And we are not doing trading that buying a few kilograms here and there and selling and all that. We are only selling. We are buying from our regular suppliers and selling to our regular customers.

Yes. Yes. Yes, I agree with that, sir. And the numbers also show that ours is a 0 debt company, good cash, good ROCE. But somehow perception is there. So I just wanted to ask about the -- how to change the perception, sir. That is most important.

So the people who are having the perception. We are not having that perception.

The thing was about this inventory write-off which we had in 2022. So any -- what have been the learnings from that? And how are we able to -- how can we be able to counter it? So because ours is an asset-light model, so inventory risk we will have to carry on or sort of this time, we have learned the lessons and it will not be that severe in 2022.

Mr. Vivek, I don't know whether you've heard that inventory situation was not created or caused by any stress by Sharda Cropchem. This was created by a lot of players in the market who had seen a big scarcity of products during the corona and COVID times. So then that the hunger for sourcing the products and it got extended very long. So everybody wanted to buy whatever was available. And the manufacturers had also increased their capacity, so they were able to deliver and supply as much as the people wanted. It was only after some quarters or months, the market realized that there's a lot of products in the pipeline and in warehouses. So it was not any step done by an individual company like Sharda Cropchem. We were only facing the situation, but we were not having any contribution to the cause of the situation. Understood?

Got it, sir. And that is -- the future is looking quite good for us, and I believe our numbers are quite good and future is also -- all the best for the future.

The next question is from the line of Madhu Agarwal from Agarwal Family Office.

I have a couple of questions. One is on the inventory increase or the inventory normalization that we have seen. Do we have a sense of whether this is restocking or it is sell-through demand to the end market?

Madam, I would only comment that today, the inventory situation is absolutely under control and very well managed.

Okay. And my other one is we have about 1,000 molecules currently under application. Are there any that we are expecting to come through in this financial year?

Your question is very general and my reply is yes. We are expecting many registrations to come in this financial year. But I have been repeating that the process of registration is full of uncertainties. Nobody can plan and calculate that I'm going to get this registration in this month or this year because the requirements of the authorities keep on changing and the process of registration also requires a lot of field trials and field trials have to be repeated. So these are all dependent upon the weather conditions and controlled by the bureaucracies in every country that we want to register the product. And the bureaucracies are really bureaucratic. Sometimes they meet -- I mean, they are supposed to meet once in a quarter, sometimes they don't meet for 2, 3 quarters. So that is affecting the pace and speed of the registration, which -- for which we have no control, and that is not the highest priority thing for the bureaucrats. Am I clear?

Sure. I understand that. So then the 10% to 15% top line growth that we are guiding is not assuming any new molecules, right? It's assuming our current product portfolio only.

No. Your statement is not correct. I have not said that we do not expect any registrations in the current year. I have said I cannot tell you precisely how many, but we are definitely going to get registrations during this year, and we are very optimistic about getting good amount of registrations in the current financial year for financial year 2027.

Understood. Okay. So the top line growth then assumes a certain number of registrations will come through. We don't know how many, but it assumes current portfolio and new registrations. My understanding is correct now.

The top line growth is not fully dependent upon the registrations that we get. This only changes the needs and requirements and other economic factors, but not the growth because the agriculture remains the same and the agricultural needs agrochemicals as well as fertilizers. You understand? And they keep on increasing because the increase in the population of the world and need of agricultural products. Understood?

The next question is from the line of Riju Dalui from Antique. Okay. We'll move on to the next question is from the line of Rohit Nagraj from 360 ONE Capital.

Congrats on a very strong set of numbers. Sir, first question is on China sourcing. So post the war, have we seen any challenges in terms of availability of material in China and that -- I mean in the last, say, 2, 2.5 months?

No, sir. There is no challenges in the sourcing of products in view of this war or the current situation. Only thing is there's an uncertainty in the minds of the people and that what will happen if this happens or that happens. But that has not impacted the supplies till date. And nobody can predict what turn the war will take after 1 week or after 1 month or after 6 months. Nobody can predict. A lot of uncertainty is there about the war. And I'm very positive that there will always be a solution rather than things going so much out of control.

Got that, sir. Sir, second question is in terms of logistic availability, have we seen any delays of shipments from China to any geography? And the higher logistic cost, will we be completely transferring that to our product incrementally?

So you had again 2 or 3 questions in this thing. Now I would say that we have not seen any -- what was your first question, Mr. Rohit?

Yes. Sir, in terms of logistics, have we seen any delays or nonavailability of ships from transportation perspective from China to any geographies?

See, I would not -- I mean, I would say that the delays have been there, but very insignificant, not impacting or jeopardizing our sourcing or transport. Similarly, there have been a slight increase in the target cost, but that is very insignificant. And none of -- particularly for our business and for Sharda Cropchem, none of the transportation is going through this Hormuz and Iran and Iraq area. They are going through South Africa. So there's an increase in the time of the transportation. But otherwise, things are under control and very normal.

The next question is from the line of Vedant from Mass Investments.

In the Q3 call, you gave guidance for FY '27 where you mentioned like 15% volume growth is achievable. So the current guidance you have given 10% to 15%, is it the volume growth that you have given.

Sir, I have not said that volume will be 15% and I have said the business will grow by 10% to 15%. Revenue will grow by 10% to 15%.

Okay. So this includes volume plus price both?

Yes.

Okay. Because I was recollecting from the Q3 call where you mentioned 15% volume growth is achievable. So I wanted to clarify on that.

Okay. I'm very happy that you are remembering these questions. I'm happy, thank you.

The next question is from the line of Khush Bafna from Bafna Brothers.

Congratulations on a great set of numbers. Sorry, I'm coming back to this point, but I attended the previous con call after quarter 3 and one Mr. Anubhav Mukherjee, if I remember the name right, had asked guidance for FY '27 revenue. And you had mentioned 15% to 20% that time. I just reset the transcript and I saw that. So that guidance is being changed now to 10% to 15%, right? I just wanted to confirm that.

I don't remember when -- I mean maybe last time I said 15% to 20%. But today, for the coming year, my hum feeling is that it will be about 10% to 15%. It could go up, and we will not stop if it goes up.

The next question is from the line of Vijay Yadav.

What would be the volume growth for FY '27, sir?

Sir, I can only project. I don't have detailed calculations to tell you what will be. It should be around 15%.

Volume growth?

Volume growth, yes.

So that means when the revenue grows by 10% to 15% and the volume is growing by 15%, that means there is a drop in realization.

I cannot comment on that. I've just given you an impression.

So you are not expecting any ForEx impact in the next year?

I've never said so. This ForEx impact is not under my control. We only have to face the situation and handle it as and when the situation unfolds in front of us.

But this 10% to 15% is on the lower side or that is our best chance, sir?

I have said 10% to 15%, but I have also said it can go up, and it can also go down depending upon a lot of factors, which we cannot foresee today.

The next question is from the line of Anubhav Mukherjee, Prescient Capital.

Sir, the strong revenue growth that the company has shown in the last 2 years, have we benefited from like launch of any generic for any agrochemical that has gone off patent in the last 2 years in North America or Europe?

See, I think there are some products which have gone off -- you said off patent.

Yes.

This is a normal trend in the market. Some products go off patent and some products go even banned and new products come in with the new registrations. So this is a normal process. There's nothing very specific or very sort of controlling that I can point out to you. This is an absolutely normal process.

Okay, sir. And sir, will it be possible to share the contribution of like top 5 or 10 products to our revenue?

I think it would be possible. Give me a few minutes. See, I would say top 5, the contribution is about 22%, 26%? Sir, the top 5, the contribution is about -- he said it's 22%, but I think it could be more.

Okay. And sir, the contribution has remained in the same range over the last 2, 3 years? Or have we seen like some particular molecule like contributing a lot of growing here?

Mr. Mukherjee, this is a business. So the contribution keep on going up and down from product to product depending upon supply and demand and many other factors. So I cannot say specifically that this is because of this factor.

Next question is from the line of Rajat Setiya, ithoughtPMS.

Sir, what would be the revenue from new products that we would have launched in the last 3 years?

What did you say new products in the last 3 years?

Yes, sir. The revenue from those products, let's say, last 3, 4 years?

I can make a guess. It could be about 30%.

Okay. Sure, sir. And sir, if you can also share the region-wise, you have shared Europe -- gross margins in Europe. If you can also share gross margins in other geographies for the quarter as well as for the whole year?

Yes, sir. I've given you the figures for Europe. The gross margin in NAFTA region was 28% in the quarter 4 and 25% for the year '25-'26. For LatAm, it was 28% and 25%. Rest of the world, it was 46% and 43%.

And sir, Europe for the full year?

Europe for the full year was 42%, 42.5% approximately 42%.

Right. And sir, if you can also talk about the nonagrochemical segment a little bit. How are you seeing the outlook now? Last year was pretty flat in terms of our volume growth or the overall revenue growth, business growth.

Yes. I would say we should be able to grow about 5% to 10%.

Okay. And sir, how is the pricing scenario there or the margin overall? How are you seeing?

The margins have improved in the last year compared to previous years.

Okay. And the reason would be our product mix or the pricing scenario has changed?

Reason for which you mean agro or nonagro?

For margin improvement. Nonagro margin improvement?

See, nonagro is a special kind of business. I mean we are not stocking and selling. And so every time the customer gives us a requirement is a specific requirement for every customer, depending upon the specification with length and content of the conveyor belts. So after we receive an order, we conclude we get quotations and then we start manufacturing.

Sorry, sir, I was not able to hear your last line.

What I'm saying like unlike agrochemicals, the conveyor belt business is goods getting manufactured to the specific requirement of the customers. You understand? So the goods are getting -- after the specifications are concluded and finalized.

Sure. So you mean it's a customized product?

It's made to order, not already made and then supply.

Sure. So sir, what led to margin improvement? I was not able to understand that part.

See, what did you say? Margin improvement.

Yes. What is driving the improvement in margin?

Because now we are seeing the trend that we are having very good demands, more requirements, and we are able to improve the margins because the demand is also improving.

Got it. Got it, sir. And sir, over the next 2, 3 years, what is the kind of opportunity that exists from new -- from the products which are going off patent and have -- are we registering for such products? Yes.

Mr. Setiya, this process is not done by us. We are only seeing our innovators, our gurus who made the products, they are planning much ahead in advance. So they are doing all the R&D and developing the products. And then they also have an exposure of selling those products and the patent for the first 10 years. Our role comes only thereafter. So we choose directly from what is available to us and what is presented to us by the innovators.

Right, right. Yes, sir, that is what my question was. Like what is the opportunity you see from these products going off patent in the next 2, 3 years?

Some products will continue to go off patent because as the technology is developing, some products which have been used in the past, they also have some weaknesses, some side effects on the health or climate and so many things. So let us try to find out the products similar to them, but without those weaknesses.

Sorry to interrupt, please return to the question queue. The next question is from the line of Vivek Gautam from GS Investments.

I wanted to understand are the tailwinds for the agriculture and agrochem sector back as much better than past. And so it's helping us and companies like us, for example -- and Ukraine war, any impact has been because Ukraine used to be the grandeur of the world and the Europe, sir.

You'll be very much surprised, Mr. Vivek. We continued -- we have been supplying goods to Ukraine for the last 5 years, even now. They are buying from us. The ports have been destroyed. The goods are getting transported to European ports. And from European ports, the trucks come from Ukraine and pick up the goods. We are paying for the cost and then we are able to pass it on to our customers. But our business in Ukraine is going on. We are able -- we are getting orders on time and we are getting payments on time. This is a very big surprise to the world, but this is what is happening in agrochemical business. People need food and they need also agrochemicals. And I have not heard in the war that some fields, agricultural fields have got destroyed or divested. They divest lot of other things, but not the agricultural fields.

See other than Ukraine also, the same situation prevailing?

Yes, sir, we are also supplying to Israel to give you in Israel. We're also selling to Israel.

Okay. So tailwinds are quite strong for our sector for agriculture and for agrochem as such worldwide.

Yes, sir.

Yes, that is the season we would know.

As the world population is increasing, the demand of agrochemical products is also -- agricultural products is also increasing.

The next question is from the line of Sameer Deshpande from Fair Deal Investments.

Bubnaji, this is really -- I would like to congratulate you for the stupendous success. And for the first time, we crossed INR 5,000 crores. That has been a big achievement for the company. And the consistency is really appreciable. And as you mentioned, we are really surprised to understand they have been supplying to Ukraine, Israel and almost -- so how many countries do we supply any rough idea?

Beg your pardon?

Our exports are happening what total number of countries, any idea?

About 70 to 75 countries around the globe.

Okay. Really good. And the niche we have developed with new product registrations, et cetera, which last year also we have, I think, secured some 40, 50 registrations from 2,950 to 3,000 plus. And as you mentioned, the pace is unpredictable. But it is good that slowly if we are in a position to grab more, it is going to benefit us more because of the limited competition, which our registered products face in the country. And it is nice to hear the Middle East crisis is not affecting our exports because we were hearing that maybe the Strait of Hormuz is likely to affect our export to Europe. But I think you mentioned that it is not at all affecting us and our freight costs are also in the similar range, so not affecting our gross margins. So our gross margin guidance is around 35%?

Yes, sir.

Next year?

Yes, sir.

Okay. And congratulations and we'll be happy to see the company growing at this brisk pace.

Thank you, sir. We need your good wishes.

The next question is from the line of Madhur Rathi from Counter Cyclical Investments.

Sir, if I look at our registration pipeline as well as the products that are -- registration as well as pipeline, the amount of intensity for incremental registration that we receive Y-o-Y as well as the registration pipeline, were these stagnant for the past 3, 4 years. So how should we look at our business going forward? Because we see that the approval by authorities has stretched. So how should we look at our competition going forward?

Sir, there was an echoing in your voice. And the question was very long.

Sir, I'll repeat my question. I'll repeat my question.

And slowly and one by one.

Yes, sir. Sir, so I was trying to understand, sir, the registration that we have, sir, in Y-o-Y incremental, whatever -- so we were like 2,700 during FY '22. Right now, we are 3,000. So there has not been a lot of jump over the 5 years. At the same time, our pipeline has been closer to 1,000 or 1,100 registrations that we are planning to add. So the incremental addition has got very slowed down versus what it was earlier. So how should we look at our business going forward? Because on one side, we mentioned that because of authorities stretching the registration time line, competition is limited, but also our own registration pipeline is getting impacted. So how should we look at that business going forward from this perspective?

Mr. Madhur, just like when you go to -- you have your meals or food, sometimes you are able to get some sweets, sometimes you get a special dish, sometimes a special dish. So all those foods are capable of filling your stomach and satisfying your hunger. So these products that are new products are coming, they are more sophisticated, more safer to use and more effective. But if they don't come, that does not mean the agricultural stops. Agriculture still continues with the older products. So this has nothing to do with the growth of our business. You understand? There are some products which have been used, I know for the last 20 years or 25 years, but all of a sudden banned that they say they are carcinogenic. But they have still be used for a lot of times -- a lot of periods in the history.

Sir, I'm trying to understand please go ahead, sorry.

No, I'm listening.

Yes, sir. So I was trying to understand that going forward, should we look at our realizations improving because of limited competition because -- due to the lower approvals by these authorities? Or how should I look at like that whatever new registration will come, they'll come -- their value as well as volume growth would be much higher for us going forward. So how should I look at our business? I was trying to understand on that front.

Mr. Madhur Rathi, we are having not more than 5% of that market share globally. You understand? So we have a lot of scope to improve our market share. If it goes from 5% to 6%, it's almost 20% increase in Sharda Cropchem's business. And these are not dependent upon a particular product or particular registration. It is mainly dependent on our contracts, market share and the confidence that the customers are having in Sharda Cropchem's ability to supply the promised product in promised time and at promised value. The new registration is not dictating the growth in the volume of the business. Is it clear?

Yes, sir.

Ladies and gentlemen, that was the last question. I now hand the floor over to the management for closing remarks.

Okay. I would like to thank everyone who have joined us and for having spared their time to take part into this conference call. I hope we have been able to answer all your queries. We look forward to such interactions in the future. We hope to meet your expectations in the future also. In case you require any further details, you may contact us or our strategic growth advisers, which is SGA, our Investor Relations partners. Thank you very much. Have a nice day.

Thank you very much, sir. On behalf of Antique Stockbroking Limited, that concludes this conference call. Thank you all for joining us, and you may now disconnect your lines. Thank you.

Thank you.