Agri input firms see higher Q2 profits due to rise in sales, normal monsoon

Agricultual input companies have posted decent growth in revenue and net profit for the quarter ended September, with sales rising on normal monsoon rain and price hikes.PI Industries, for example, reported a 29 per cent jump in revenue at Rs 7.2 billion from the same period last year. Net profit grew 17.5 per cent to Rs 944 million. Rallis India posted 11 per cent growth in the quarter's revenue at Rs 6.5 bn and a 10 per cent jump in net profit to Rs 852 mn. While companies have been able to pass on their raw material price hikes to consumers, the lag time of four to six weeks in absorbing the hike did marginally affect their profit margin. They aim to achieve the full benefit of the price hikes in the December quarter."Performance across the business segment remained good despite the erratic southwest monsoon this kharif season. Though classified as normal, at a deficit of 9.4 per cent against the Long Period Average, only 68 per cent of areas received normal rainfall. Our close ...

from Markets https://ift.tt/2zUHVLU