Rupee Volatility To Contract Profit Margin, Says Dhanuka Agritech

Dhanuka Agritech Ltd. expects its operating margin to fall and profit level to remain “flattish” in the financial year 2019 due to a volatile rupee and higher cost of raw materials, according to its Managing Director MK Dhanuka.

“When we made imports, the rupee was at 68 per dollar and after six months when the company made the payment, it was hovering around 73 to 74,” said Dhanuka in an interview with BloombergQuint. “And, around 15,000 chemical and allied factories have been closed down. Due to this, prices of raw materials have increased drastically.”

The overall picture for the upcoming sowing season was not rosy due to low water levels in reservoirs, Dhanuka said, adding that certain “green patches” remain in vegetables and horticulture crops.