While sector after sector has hard-braked because of the Covid-19 pandemic, the agrochemicals sector is expected to see double-digit growth this fiscal because of recovery in domestic sales and healthy exports.
Adequate and well-spread monsoon, high water-reservoir levels, and increase in minimum support prices would drive up rural incomes supporting domestic demand (almost 50% of revenues) for agrochemicals. On the other hand, steady demand from the US and Latin America will keep exports healthy.
The good augury is expected to continue over the next fiscal, with structural drivers intact, assuming a normal monsoon.
Further, we are witnessing moderation in prices of imported inputs.
So what will all of this mean for the agrochemical sector's profitability and credit risk profile?
In the context, CRISIL is hosting a webinar on the agrochemicals sector, where its team will make a presentation providing insights on:
Domestic and export revenue trends and outlook
Input linkages with Chinese supply chain, and operating profitability trends of Indian agrochemical companies
Capital expenditure trends, working capital management and outlook on credit quality
The presentation will be followed by a panel discussion with industry experts and a Q&A session.
