Regular Update
ATM News Network: The Indian agrochemical sector is expected to grow by 15 to 17 percent in the current financial year, according to rating agency CRISIL. The same growth was recorded at 23 percent in the last financial year due to strong exports and stable domestic demand.
As India benefits from the 'China plus one' strategy of global companies, revenue is expected to grow by a further 10-12 per cent in FY 2023-24. Even if the prices of agricultural inputs increase in the coming years, it will help to maintain revenue growth at 15-16% in the current and next financial years. Capital expenditure will continue at the same level as in the past. But borrowings will be higher due to increase in working capital, CRISIL said.
However, the credit profile of agrochemical companies is expected to remain 'stable' due to strong cash generation. Crisil director Poonam Upadhyay said exports are likely to grow by 12-14 per cent in the next financial year. Global firms are eyeing companies worth US$4 billion in the next two years. As a result, the agrochemicals sector will continue to be a major export contributor and account for 53 percent of total revenue.
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