AgroPages-Meghmani Organics sales down 13% in Q2 FY 2016-Agricultural news

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Meghmani agrochemical sales increased by 5% in Q2 FY 2017

Meghmani Organics’ agrochemical sales fell by 12.6% to Rs 1280.5 million in the second quarter which ended September 30th 2015. 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.

Gross profit of the company’s agrochemical business increased by 21.8% to Rs 326.2 million in the second quarter, gross profit margin increased from 18.3% in Q2 FY 2015 to 25.5% in Q2 FY 2016 due to better price realization.

Sales of agrochemical segment in the first half year were down by 2.7% to Rs 2368.6 million. Domestic sales fell by 11.9% to Rs 784.3 million, while export sales rose slightly by 2.7% to Rs 1584.3 million. Gross profit and gross profit margin both increased by 38.3% and 7.2%, respectively.

Outlook

The company predicted that Unpredictable market trends, rupee/dollar exchange rate and price pressure may impact profitability of agrochemical business in Q3 FY 2016.