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Agri Input and Chemicals Emkay
n We expect our universe to report strong Q4FY11 results driven by higher profitability in fertiliser segment and
improved margins in chemical segment
n Aggregate revenues to increase by 21% while aggregate EBITDA growth is expected at 49% on account of 360 bps
expansion in aggregate EBITDA margins to 19.4%. We expect APAT growth of 34% for the universe
n Complex fertiliser sales volumes in Q4FY11 for the industry indicates marginal decline of 3% yoy (being Mar’11 data
provisional) while urea volumes increased by 15% yoy. Aggregate fertiliser revenues for our universe increased by
23% on account of volume growth and price increase while EBIT margins improved by 520 bps to 11.5%
n Chemical segment benefited from rising chemical prices as emkay chemical index increased by 8% yoy / 5% qoq.
Resulting aggregate chemical revenues registered a growth of 13%. On back of improving spread EBIT margins in
chemicals improved by 410 bps to 23.9%
n Agrochemicals sales are likely to remain strong in the quarter on account of some spill over sales from Q3FY11. We
also expect growth to pick up in European and North American markets on back of improved weather conditions
n We expect GNFC to post strong results driven by higher fertiliser sales (since company had production disruption in
previous year) and strong chemical prices. GSFC should report another strong quarter since caprolactam prices
remain at accelerated level during the quarter. Chambal Fertiliser is expected to benefit from higher urea prices on
the production above cut off during the quarter
n Our outlook on the sector remain strong and we expect that complex fertiliser sales volumes to pick up in Q1FY12.
Chemicals prices are likely to remain buoyant driven by firm demand
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Agri Input and Chemicals Emkay
n We expect our universe to report strong Q4FY11 results driven by higher profitability in fertiliser segment and
improved margins in chemical segment
n Aggregate revenues to increase by 21% while aggregate EBITDA growth is expected at 49% on account of 360 bps
expansion in aggregate EBITDA margins to 19.4%. We expect APAT growth of 34% for the universe
n Complex fertiliser sales volumes in Q4FY11 for the industry indicates marginal decline of 3% yoy (being Mar’11 data
provisional) while urea volumes increased by 15% yoy. Aggregate fertiliser revenues for our universe increased by
23% on account of volume growth and price increase while EBIT margins improved by 520 bps to 11.5%
n Chemical segment benefited from rising chemical prices as emkay chemical index increased by 8% yoy / 5% qoq.
Resulting aggregate chemical revenues registered a growth of 13%. On back of improving spread EBIT margins in
chemicals improved by 410 bps to 23.9%
n Agrochemicals sales are likely to remain strong in the quarter on account of some spill over sales from Q3FY11. We
also expect growth to pick up in European and North American markets on back of improved weather conditions
n We expect GNFC to post strong results driven by higher fertiliser sales (since company had production disruption in
previous year) and strong chemical prices. GSFC should report another strong quarter since caprolactam prices
remain at accelerated level during the quarter. Chambal Fertiliser is expected to benefit from higher urea prices on
the production above cut off during the quarter
n Our outlook on the sector remain strong and we expect that complex fertiliser sales volumes to pick up in Q1FY12.
Chemicals prices are likely to remain buoyant driven by firm demand
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