Business Standard

Fertilizer sale declines 15% in H1 of 2013: ICRA

Demand was being affected due to increased cost of raw materials globally

Read more on:    Fertilizers | Nutrients | Ssp | Dap | Npk | Ration | Icra
Related News

The sales of witnessed a year-on-year decline of 15% in the first half of financial year 2013, according to a recent report by rating agency .  While urea volumes continued to remain relatively steady, a steep decline was witnessed in the sales volumes of fertilizers such as di-ammonium phosphate (), single super phosphate () and complexes.

The demand was being affected by higher prices on account of lower subsidy for these , increased cost of raw materials globally and rupee depreciation.

The demand for these fertilizers was further impacted by inventory overhang in the first quarter of financial year 2013 and delayed monsoon. The N:P:K usage ratio is expected to have deteriorated from 6.5:2.9:1 in FY12 to 8.1:3.2:1 in Kharif 2012 (as par Fertilizer Association of India). Nevertheless, the core long-term demand drivers for the industry remain steady despite consumption in the recent past being impacted by price differentials and other factors, the report said.

The government subsidy allocation for FY13 has been insufficient given the stable import volumes as well as high global prices, according to ICRA. The impact of lower subsidy allocation has been reflected in the finances of the industry players as of end-September 2012, with increase in subsidy receivables leading to an increase in working capital / short-term debt levels. This is also expected to result in deterioration in capital structure and higher interest expenses for fertilizer companies in FY2013.

Read more on:   
|
|
|
|
|
|

Read More

Cotton yarn exports to touch record high in FY13

This financial year, cotton yarn exports are expected to touch an all-time high, owing to good demand from China. Textile Commissioner A B Joshi said ...

Quick Links

 

Market News

Coriander up 1.1% on spot demand

Spice for delivery in June traded higher by 1.06%

Chana down 0.9% on profit-booking

Commodity for June delivery fell by 0.81%

Nickel down 0.6% on subdued spot demand

Analysts said the fall in nickel prices at futures trade was mostly in tandem with a weakening trend in the domestic spot markets

Companies improving on the profit front

Many companies are expected to swing into profits in the March 2014 quarter compared to the losses in the year ago period or December 2013 ...

Broader markets outperform benchmarks; RIL pares gains

BSE mid-cap and small-cap indices were up between 0.8 - 1%, significantly outperforming the benchmark Sensex's 0.3% upmove.

Back to Top