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Apr 05, 2012, 02.15 PM IST
Prabhudas Lilladher has come with its quarterly earning estimates on agri products & chemicals sector for March 2012.
Prabhudas Lilladher has come with its quarterly earning estimates on agri products & chemicals sector for March 2012. In India, fertilizer sales volume has shown growth of mere 0.3% YoY on account of 3.5% YoY decline in non-urea fertilizers volume during Apr11-Feb12. Non-urea (manufactured) fertilizers, excluding Single super phosphate (SSP), de-grew by 8.7% YoY and the imported/traded non-urea fertilizers dropped by 5.6% YoY during the sameperiod.
On the other hand, urea sales volume, which has partially offset the decline of non-urea fertilisers, grew by 4.1% YoY during Apr11-Feb12 v/s 7.1% during FY11. SSP has shown tremendous growth of 37.1% YoY during Apr11-Feb12.
In India, we believe that agri inputs players could show sustainable steady growth on the back of government’s focus on rising agricultural productivity. Hence, we are positive on agri inputs like fertilizers, seeds, crop protection and industry.
We expect that growth of agri output (like rice, sugar etc.) players would depend on commodity cycle. Further, government’s focus on higher MSP on farm produce to incentivize farmers and final commodity price control on the back of inflationary scenario is expected to add pressure on the profitability of domestic agri output players.
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Tags: Prabhudas Lilladher, agri , chemicals , agri products, Tata Chemicals, Coromandel Inter, United Phosp, Jain Irrigation, Chambal Fert, Rallis India, Deepak Fert
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