National Fertilizers Q2 results: Net profit at Rs 12.07 cr on lower costs

India's National Fertilizers reported a profit in the second quarter on Monday as lower costs helped cushion the impact of lower product prices.

The state-run agricultural chemicals maker reported a consolidated profit of Rs 12.07 crore ($1.4 million) for the quarter ended Sept. 30, compared to a loss of Rs 87.1 crore a year ago.

Revenue fell 22.4% to Rs 4,390 crore, while total expenses declined 24.4% to Rs 4,418 crore.

KEY CONTEXT

High fertiliser and agricultural chemicals inventory and destocking for the past few quarters pressured prices, hurting margins of agrochemical makers, analysts said.

While international agrochemical demand is recovering, with higher sales volume across geographies, ample supplies from China have also curbed price increases, analysts added.

Peer UPL on Monday posted a wider quarterly loss hurt by pricing pressures.