Agrichem firms in the south better placed

Market in these states is expected to grow 15-20 per cent year-on-year

The profitability of agrochemicals companies that have operations in south India is likely to stay better than those of industry peers in the current financial year, following a recovery in sales after a weak June quarter.

While all companies in the agrochemicals space faced destocking problems in the June quarter ahead of the introduction of the goods and services tax (GST) on July 1, a delay in the monsoon rains has aggravated the situation, resulting in subdued profit margins. Many stockists returned their goods to the manufacturer, resulting in a sharp decline in profits.

However, sales bounced back in the second fortnight