Delayed monsoon drags down NACL turnover by 11 per cent

Our Bureau Hyderabad | Updated on August 19, 2019 Published on August 19, 2019

Optimistic on growth revival with satisfactory rainfall across the country.

Delayed monsoon this year has dragged down the standalone turnover of NACL Industries (formerly Nagarjuna Agrichem Limited) to ₹198.29 crore in the quarter ended June 30, 2019, from ₹222.46 crore in the same period last year, showing a decline of 11 per cent.

It reported a net profit of ₹1.24 crore in the quarter as against ₹1.10 crore in the comparable quarter previous year.

For the full year 2018-19, the company reported a loss of ₹8.38 crore on a turnover of ₹891 crore.

“The domestic retail market recorded lesser sales in the first quarter due to low off-take on account of delayed monsoon. With satisfactory rainfall across the country this month, agricultural operations are reviving,” a senior company executive has said.

“Exports too have declined because of the unfavourable season and shortage of input material. However, the outlook for the coming quarters looks positive,” he said.

The raw material supply from China continues to be a concern due to volatility in prices and availability. “However, necessary steps are being taken to mitigate the impact,” he said.

New plant

“A new facility is being built at the Srikakulam (Andhra Pradesh) site to meet the expected growth in demand for technicals as well as intermediaries. This will also help mitigate input supply risk from China. Manufacturing of a new intermediate has begun at the plant this quarter,” the company informed the Bombay Stock Exchange.

Published on August 19, 2019
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