Meghmani agrochemical sales increased by 5% in Q2 FY 2017

Meghmani Organics’ agrochemical sales increased by 5% to Rs 1344.1 million in the second quarter of 2017 which ended September 30th 2016. Domestic sales were down by 23.3% to Rs 479.6 million in this quarter due to decrease in sales prices. Export sales slip marginally by 4.7% to Rs 800.8 million. 

The amount of gross profit percentage of Agrochemical Division decreased by 15.3% and GP margin decreased from 25.5% in Q2 FY 2016 to 20.5% in Q2 FY 2017 due to decrease in sales prices of Cypermethrin, Zeta Cypermethrin, Alpha Cypermethrin and Chlorpyriphos.

Sales of agrochemical segment in the first half year were up by 7.5% to Rs 2546.5 million. Domestic sales increased by 45.8% to Rs 1143.9 million, while export sales down 11.5% to Rs 1402.6 million. Gross profit and gross profit margin both decreased by 26.5% and 31.6%, respectively.

Outlook

The company predicted that the global markets for Agrochemical products are under pressure, while Caustic Chlorine ECU have shown sign of improvement.