Meghmani Organics agrochemical sales down 15% in FY2013

Indian company Meghmani Organics’ agrochemical sales decreased by 14.5% to Rs 3,397.8 million ($60 million at the current rate) in FY 2013 ended March 31. Agrochemical sales were up by 18.1% to Rs 837.4 million ($14.8 million)in the fourth quarter of FY2013. Gross profit for the year was down by 28.9% to Rs 366.4 million ($6.5 million). The decrease in Production of Chlorpyriphos and Acephate resulted decrease in sales, which affected profitability. The increase in raw material prices of chlorpyrifos & Permethrin also reduced profitability. The gross profit margin decreased from 13% in FY2012 to 10.8% in FY2013.

Export sales of agrochemical division decreased by 11.9% to Rs 2,489.3 million,accounting for 73.3% of annual revenues, because of decrease in quantity sales of Intermediates viz., Meta Phenoxy Benzeldehyde (MPB), Cypermethric Acid Chloride (CMAC)and Mono Chloro Acetic Acid (MCAA) and Technical products viz., Acephate, Cypermethrin and Chlorpyriphos. Domestic sales of Agrochemical Division decreased by 20.9% due to decrease in sale quantity of chlorpyrifos and Cyphermethrin.

Agrochemical revenues were up by 18.1% to Rs 837.4 million ($14.8 million)in the fourth quarter of FY 2013. Export sales increased by 27.3% , accounting for 86% of sales. Domestic sales declined by 17.9%. Gross profit increased dramatically by 61.7%.