India’s fertiliser sales volume, from the companies to the distributor’s level, declined 11.3 per cent year-on-year during Q3FY13. The urea volume was up 6.3 per cent year-on-year, whereas the non-urea volume dipped 28.6 per cent year-on-year.
The decline has been attributed to excess inventory at the distributor level and higher prices of fertilisers despite a better rabi crop. According to Edelweiss Securities, the impact of excess inventory is expected to continue and non-urea volume is expected to show de-growth during Q4FY13 as well.
For FY14, the quantum of opening inventory and the subsidy rate would be decisive factors to determine non-urea sales volumes.
The traded non-urea fertiliser has seen a steep decline of 38.9 per cent year-on-year (YoY) owing to better raw material availability that led to higher manufacturing in non-urea fertiliser during Q3FY13, the agency has said adding, Q3FY13 numbers are expected to be muted.
Owing to lower sales volume, net sales are expected to grow by a mere 2.5 per cent YoY (down 9.5 per cent quarter-on-quarter) and PAT to dip 13.4 per cent YoY (down 10.9 per cent quarter-on-quarter) in Q3FY13.