India's agrochemicals industry is expected to maintain strong double-digit growth of 15-17% this fiscal, after a stellar 23% growth last fiscal, as exports continue to be robust and domestic demand steady.
For the same reasons, revenue growth is expected to be in double digits next fiscal as well. What also augurs well is global manufacturers intensifying focus on China+1 strategy and the opportunities emerging from molecules worth U$4 billion going off-patent worldwide.
CRISIL Ratings expects the industry to sustain operating margin of 15-16% this fiscal and the next, backed by higher operating leverage and moderation in key input prices from the highs seen in the first half of this fiscal.
In the road ahead, volatility in raw material prices, supply-chain disruptions, currency fluctuation and the impact of monsoon distribution will bear watching.
Given the overall good prospects, a raft of questions arise: Will the agrochemicals makers embark on higher capital spending? How is the economic situation expected to play out in key export markets? What will be the impact on working capital cycle of domestic manufacturers?
For answers, we invite you to our webinar on the agrochemicals sector on January 10, 2023, where our experts will discuss:
Structural growth drivers
Outlook on revenue and profitability
Likely trajectory of capital spend and working capital cycle
Overall credit outlook
The webinar will be followed by a panel discussion with leaders from the industry, 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.
