Meghmani Organics sales down 19% in Q2

Indian company Meghmani Organics’ agrochemicals revenue has declined by 18.7% to Rs 821.5 million in its second quarter which ended September 30th, 2012. Domestic sales decreased by 24.6% to Rs 312.7 million due to less production and sales of the products, accounting for 38% of total revenue. The export sale of agrochemical has dropped by 14.6% to Rs 508.8 million mainly due to decrease in sales of Agro Chemical & Trading Activity, said the company. Gross profit in the second quarter was Rs 110.6 million, down by 24.2% on account of pressure on price realization.

First-half year sales slipped by 22.9% in agrochemical business to Rs 1,812.0 million. Domestic sales, accounting for some 32.5%, down by 26.8% to Rs 588.3 million, while export sales also decreased by 20.9% to Rs 1223.68 million. Gross profit for the first-half was Rs 240.4 million, down by 18.2%.

The company stated that this year saw an average performance in exports mainly because of the imposition of international embargo on Iran - one of the company’s main export markets, low off-take from Argentina, re-registration  requirements  in  some  of  the  Latin  American  countries  and  a  general  malaise  seen within the existing customer base.

After a year of below par performance, the outlook for Meghmani is improving with favourable market factors lead by sustained demand for food grains and bio-fuels and government’s focus on development of agriculture.