India’s National Fertilizers posts quarterly profit drop on weak demand

India’s state-owned agricultural chemicals producer National Fertilizers (NAFT.NS) reported a significant decline in its third-quarter profit on Monday, attributed to weakened demand for its fertilizer products. The company recorded a 69.6% decrease in its consolidated profit, totaling 458.1 million rupees ($5.2 million), for the quarter ending December 31, down from 1.51 billion rupees ($17.3 million) in the corresponding period the previous year. Revenue decreased 22.8%, amounting to 58.56 billion rupees ($670 million).

Analysts note the agricultural sector’s challenges and predict a potential recovery in 2025 following a period of destocking, although some firms may continue facing difficulties. Factors contributing to the weak demand during the quarter included minimal pest infestations, favorable weather conditions, and delays in seasonal trends, which adversely affected sales volumes. Specifically, the company experienced a 14.5% decrease in revenue from its primary fertilizers business.