1. All facilities achieve zero liquid discharge status by 2025 Missed - In FY22, the company set a 2025 goal for all facilities to achieve zero liquid discharge status, with 80% of sites already compliant. The 2025 deadline has passed, and no subsequent disclosure confirming full achievement has been identified in our record through FY26.
2. FY22 ESG targets - water intensity, emission intensity, energy intensity, waste to landfill, renewable energy Partial - In the FY22 annual report, the company set 2022 targets: 3% reduction in water intensity, 5% reduction in emission intensity, 3% reduction in energy intensity, 5% reduction in waste to landfill, and 15% renewable energy. Achieved till FY22: 7% reduction in water intensity, 8% reduction in emission intensity, 16% increase in energy intensity, 43% reduction in waste to landfill, and 20% renewable energy - four of five targets exceeded, but energy intensity increased against the reduction target.
3. Capex of ₹350-400 cr in FY23 Missed - At the Q4 FY22 call, management committed to capex of ₹350-400 cr for FY23, later revised to ₹275-300 cr at the Q2 FY23 call with ₹225-250 cr expected to be capitalised. FY23 CWIP was ₹127 cr, up from ₹22.82 cr in FY22 - a CWIP addition of \~₹104 cr, less than half the lower end of the revised ₹275-300 cr target.
4. CMO business - 50% compounded growth over next 3 years (FY23-FY25) On track - At the Q2 FY22 call, management guided CMO business would grow at a compounded rate of 50% over the next three years. CMO revenue reached ₹163 cr in FY23 (85% growth) and ₹273 cr in FY24 (67% growth), both exceeding the 50% target, though FY25 and FY26 CMO revenue figures are absent from our record.
5. Capex of ₹300-350 cr over next 3 years (FY22-FY24) Missed - At the Q1 FY22 call, management expected to invest ₹300-350 cr in the next 3 years, with the total plan later restated at ₹300-350 cr at the Q2 FY23 call. Cumulative CWIP addition over FY22-FY24 was \~₹142 cr (FY22 ₹22.82 cr to FY24 ₹165 cr), well below the ₹300-350 cr target.
6. CMO sales to reach 30% of total sales in 3 years Delivered - At the Q4 FY21 call, management guided CMO sales to reach 30% of total sales in three years, with the target later revised downward to 20-25% near-term at the Q2 FY23 call. CMO contribution reached 26% in FY23, achieving the latest revised target of 20-25%.
7. New generation triazole fungicide - online by 2023 Pending - At the Q3 FY21 call, management stated a new generation triazole fungicide was planned to be brought online by 2023, with the horizon later pulled forward to end of FY2022 at the Q4 FY21 call. No explicit disclosure of the new generation triazole fungicide launch was found in any subsequent transcript or filing in our record.
8. New R&D facility - roll out 4-6 products per year Pending - At the Q3 FY21 call, management stated that with the new R&D facility, the company might be able to roll out 4-6 products a year, versus the current 2 per year. The R&D centre was commissioned in April 2023, but no explicit annual product-launch count exceeding 2 per year was disclosed in any subsequent period in our record.
9. New R&D facility - commissioned in FY22 Partial - At the Q3 FY21 call, management stated the new R&D facility would be commissioned in FY2022, with the timeline revised multiple times through the Q2 FY23 call to end of 2022 or early January 2023. The new R&D centre was commissioned in April 2023, approximately two years late.
10. Launch 1 molecule in Q4 FY21; 2-3 in FY22; at least 2 every year thereafter Partial - At the Q3 FY21 call, management guided 1 molecule in Q4 FY21, 2-3 in FY22, and at least 2 every year thereafter, with the FY22 target later refined to four CMO products and one enterprise product. FY21 saw 3 molecules launched, FY22 saw 2 new CDMO products and a new production process launched, but from FY23 onwards our record holds no explicit molecule-launch counts to verify the commitment.
11. EBITDA margins of 19-20% sustainable on a full-year basis Delivered - At the Q3 FY21 call, management guided that 19-20% EBITDA margins on a full-year basis were sustainable, and at the Q4 FY21 call stated an expectation for EBITDA to be above 20% going forward. EBITDA margin was 21.2% in FY21 and 24.3% in FY22, consistent with the guidance.
12. Move to 25% EBITDA margin over medium term (2-3 years) Missed - At the Q3 FY21 call, management stated the target of moving to 25% EBITDA margin over the medium term of 2-3 years. EBITDA margin peaked at 24.3% in FY22 and then deteriorated to 13.9% in FY23, -0.1% in FY24, -17.36% in FY25, and -1.01% in FY26 - the 25% target was never achieved.
13. New herbicide plant - EBITDA margin of 20% plus Pending - At the Q3 FY21 call, management guided the new herbicide plant would deliver an EBITDA margin of 20% plus. No plant-level EBITDA margin disclosure was made in any subsequent transcript or filing in our record to confirm or refute achievement.
14. New herbicide plant - asset turnover of \~1.7 within 2 years Missed - At the Q3 FY21 call, management guided the new herbicide plant would achieve an asset turnover ratio of about 1.7 within 2 years, with the target later refined to 1.5-1.7 and the higher end in year 3 or 4. The plant was commissioned in August 2021, but by FY26 the company’s overall asset turnover had declined sharply, with ROCE turning negative, indicating the target was not met.
15. New herbicide plant - full capacity utilisation by year 3 Partial - At the Q3 FY21 call, management stated the new herbicide plant would reach full capacity utilisation in a couple of years, with the year-3 full-utilisation target consistently reiterated through the Q2 FY23 call. The FY23 annual report noted desired stability and planned utilisation achieved, and the FY24 annual report stated capacity utilisation further increased, but no quantified utilisation percentage was disclosed to confirm the 90-100% target.
16. New herbicide plant - commissioned Q4 FY21 Partial - At the Q3 FY21 call, management stated the new herbicide plant was expected to be commissioned in Q4 FY2021, later revised to end of May or early June 2021 at the Q4 FY21 call. Commercial production started in August 2021, approximately one quarter late.
17. 20% CAGR in bottomline growth - no specific horizon Pending - At the Q3 FY21 call, management stated they target a CAGR of 20% in bottomline, without specifying a timeframe. PAT rose 38.1% to ₹89.88 cr in FY22, then declined to ₹25.59 cr in FY23, and turned to losses of ₹(46.89) cr in FY24, ₹(135) cr in FY25, and ₹(80.88) cr in FY26.