Key Highlights

Although IMD projected a normal monsoon for last year, it was finally around 95% of normal monsoon. Also distribution of rainfall was uneven which affected the consumption of crop protection products and the overall demand in India.

Exports were around 8% of total sales in FY 18 as compared to normally around 15-17% of total sales. Lower demand from international markets affected the off takes.

Seeds business account for around 22% of total revenue and performed well in FY 18. Expects the business should continue to grow as company plans to add more and more hybrid and value added seeds.

The company introduced 5 new insecticides products and 1 fungicide product in FY 18. This is in line with around 20 new products which are in the pipelines, to be launched by 2020.

The Monsoon so far is well spread across India. It's going on an expected line of normal to 97% of normal. Barring the issue in Kerala floods, the spread has been good.

The company imports around 30% of its total raw material requirements. These are traded products which the company imports from the Parent. The settlement on rupee and other expenses normally happens at the end of every year. Rupee depreciation will impact the company. Immediate passing of the cost may not happen.

Rupee depreciation will lead to some lower imports and will make manufacturing some of the agro chemicals more attractive. The company will like to evaluate its stand on further increasing capacities and developments on a broad based call rather than 1 year of rupee depreciation.

Overall, while Indian agro chemical demand is shaping up well and looks good for FY 19 given rural emphasis being an election year, depreciating rupee and international markets yet not upto the mark will remain a challenge.