Agri Input Companies

In India, farmers receive subsidised supply of inputs as agriculture subsidies and the difference between the actual cost of supplying and the price paid by the farmers is reimbursed to the suppliers

Southern Petrochemicals Industries Corporation Ltd (SPIC) has reported profit after tax for the April-June 2023 quarter at Rs 66.85 crore, the company said on Thursday. The city-based agri-nutrient and fertiliser company had reported PAT at Rs 27.68 crore during corresponding quarter previous year, a company statement said. For the year ending March 31, 2022 the profit after tax stood at Rs 140.43 crore. The total income during the quarter under review grew to Rs 753.07 crore from Rs 499.16 crore registered during the same period last year. For the year ending March 31, 2022 total income stood at Rs 1,898.31 crore. "The company's robust performance demonstrates our ability to deliver good financial results amid a challenging macro-economic environment," SPIC Chairman Ashwin Muthiah said. "It is proof of the resilience and agility of our business model. On the strength of these positive results, we will continue to play our part in enabling India's self-sufficiency in fertiliser .

FACT and Madras Fertilizers shares were trading at their 52-week highs today

These firms faced several challenges like demonetisation, erratic monsoon and low agri produce prices which hit farmers' profitability, leading to poor demand for fertilisers and pesticides

The lockdown-led supply disruption may weigh more on earnings of export-oriented players, say analysts

Coromandel International, PI Industries may be some of the beneficiaries

Agricultual input companies have posted decent growth in revenue and net profit for the quarter ended September, with sales rising on normal monsoon rain and price hikes.PI Industries, for example, reported a 29 per cent jump in revenue at Rs 7.2 billion from the same period last year. Net profit grew 17.5 per cent to Rs 944 million. Rallis India posted 11 per cent growth in the quarter's revenue at Rs 6.5 bn and a 10 per cent jump in net profit to Rs 852 mn. While companies have been able to pass on their raw material price hikes to consumers, the lag time of four to six weeks in absorbing the hike did marginally affect their profit margin. They aim to achieve the full benefit of the price hikes in the December quarter."Performance across the business segment remained good despite the erratic southwest monsoon this kharif season. Though classified as normal, at a deficit of 9.4 per cent against the Long Period Average, only 68 per cent of areas received normal rainfall. Our close ...

Companies have passed on increased raw material costs successfully, bet big on northeast monsoon for rabi season growth

Analysts are awaiting June quarter numbers and management commentary for further cues

The profit margins of agri input companies are likely to get impacted by 1-2 per cent in the next few quarters due to their commitment to cut prices of key inputs like seeds and pesticides.Both seeds and pesticides producers have agreed to cut agri input prices in a recent meeting with the officials of the Ministry of Agriculture. While seeds companies have obliged the government with 10 per cent price cut, pesticides companies agreed to roll back a recent price increase. This means, they need to cut 15 per cent on maximum retail price (MRP) of a section of pesticides used in agriculture sector.Apart from that most retailers at the village and taluka levels would face difficulties in shifting from excise duty to the Goods and Services Tax (GST) regime. The transition from the current excise duty to GST would take some time to become smooth. During this period, therefore, pesticides' sale would get impacted."The pesticides industry offers sale on credit basis also. So, with the GST ...