AgroPages-Meghmani Organics’ agrochem sales up 10.5% in Q1 FY 2017-Agricultural news

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Meghmani agrochemical sales increased by 5% in Q2 FY 2017

Meghmani Organics has reported agrochemical business’ revenue up 10.5% to Rs 1,202 million in the first quarter ended June 30, 2016. The amount of gross profit of agrochemical division decreased by 40.8% and GP margin decreased from 23.2% in Q1 FY 2016 to 12.4 % in Q1 FY 2017 due to pressure on sales price and increase in raw material consumption.

Domestic sales increased by 76.4% due to increase quantities sales of CMAC, CPP, cypermethrin and profenophos. Export sales decreased by 15.1% on account of decrease in quantity sales of MPB and pressure on sales price.

Meghmani Organics commented that the volatility in foreign exchange market, increase in crude oil prices may impact raw material prices, as a result, the company’s profitability is likely to be affected in Q2 FY 2017. The global markets prices for agrochemical products are under pressure. Meghmani expects to see the improvements in revenue from their Agro – III Plant.