Urea margins growth unabated
Major reason behind such increase in profitability is due to increase in average prices by +32% YoY to Rs1,037/ bag for the period under review as against Rs787/ bag in 1H10. However there was no change in feed stock gas price which improved the company’s gross margin and likely to remain 56.5% in 1H11 as against 44.3% in 1H10. Despite all this company’s production remained on lower side by (-5.5% YoY) to 1,172k tons, consequently offtake also dipped by (-4.6% YoY) to 1,174k tons.
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