Key highlights of AGM by Capital Mkt
Higher sales of newer products together with increase in emphasis on exports has resulted in a 15% growth in net sales and higher operating margin for FY’15.Exports is hovering around 18%-20% of total sales and management expects it to remain around that level, given the emphasis of Parent on domestic market.
Crop protection business will remain a challenge for FY’16. Given a back to back bad monsoon and lower MSP prices have weaken the sentiments of rural India. While the company through new products and higher penetration will see a growth in FY’16, it will be an overall difficult year for the company and the industry as well.
Seeds business (about 16% of total sales) has continued to do well for the company and so is for the industry. Management expects the seeds business to further do well in FY’16, given lower penetration in the market for organized seeds in India.Some farmers are ready to pay premium for agro chemicals and fertilizers, but generally, a better monsoon and sentiment helps in doing the job of company in a much easier way than in a bad sentiment and overall challenging condition.