Emkay Global Financial Services has come with its quarterly earning estimates on agri inputs & chemicals sector for March 2012. According to the research firm, the agri input & chemical sector to report topline growth of 23%yoy and APAT growth of 16% yoy for Q4FY12.
EBITDA margin is likely to contract by 110bps yoy to 15.5%. Chambal Fertilisers is likely to benefit from higher IPP linked production. Excl. Chambal, revenues are likely to increase by 20% yoy while APAT is likely to increase by mere 2%.
- Chemical prices remain stable however rising crude prices may have adverse impact on chemical margins.
- We maintain our cautious outlook on the sector. Chambal Fertiliser (to benefit from higher IPP linked production in Q4) & Deepak Fertiliser (attractive valuations) remain our preferred pick.
| Company Name | Net Sales (Rs mn) | APAT (Rs mn) | ||||
| Q4FY12 | Q3FY12 | Q4FY11 | Q4FY12 | Q3FY12 | Q4FY11 | |
| Chambal Fertilisers | 12557 | 17966 | 8112 | 1448 | 862 | 415 |
| Coromandel Inter | 16800 | 25497 | 11796 | 503 | 1472 | 404 |
| Deepak Fertilisers | 5616 | 6015 | 4285 | 505 | 637 | 495 |
| GNFC | 10502 | 10429 | 8423 | 779 | 862 | 699 |
| GSFC | 11349 | 13000 | 11149 | 1427 | 1724 | 1954 |
| Rallis India | 2771 | 3251 | 2321 | 226 | 310 | 220 |
| Tata Chemicals | 33346 | 38099 | 26577 | 2100 | 2278 | 947 |
| United Phosphorous | 19192 | 19288 | 18569 | 1778 | 1154 | 2429 |
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