For the first time in a decade, agrochemicals makers will see revenue contract this fiscal due to a sharp decline in realisations across products triggered by an influx of supplies from China, subdued demand induced by higher global channel inventory levels, and the impact of lower reservoir levels on rabi sowing in the domestic market.
These factors have significantly weighed on the sector's operating margin, posing a challenge to cash flows.
Export demand, however, is expected to recover with the onset of cropping seasons in key overseas geographies. Besides, domestic demand should bounce back next fiscal assuming normal monsoon.
That said, given the current tepid demand conditions and moderating cash flows, will manufacturers continue to undertake capital spends this fiscal? What will be the impact on their credit profiles?
CRISIL Ratings invites you to join a webinar, 'On a patchy field', where its experts will delve into these and other issues, including:
Revenue and demand outlook
Expectations and drivers of operating profitability
Capacity expansion plans
Credit profiles of entities rated by CRISIL Ratings
The webinar will be followed by a panel discussion with industry experts and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
