Agro Chemical Earnings Preview: A Lacklustre Q3, Says Prabhudas Lilladher
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Prabhudas Lilladher Report
Agrochemical industry is expected to grow mid to high single digits in Q3, driven by healthy demand from wheat, pulses and horticulture crops.
While growth was expected to be strong, unseasonal rains and extended monsoon impacted the season across various states. Unseasonal rains also lowered Kharif crop yield and farmer-to-retailer recovery was compressed.
Internationally, raw material price from China and container cost across ports globally continue to surge due to shortages.
Fertilizer’s demand momentum remains strong but high base led to flat industry volumes for Q3 at six million tonne.
Phosphatic fertilisers input cost has bottomed out and gradual hardening will likely impact margins, going forward.
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