Fertiliser firms Q1 profits to jump 44% on monsoon-led sales volume bump

Govt's efforts to reduce companies' subsidies also resulted in better working capital

The profitability of fertiliser companies is likely to jump by a staggering 44 per cent in the April-June quarter due to a sharp increase in sales volume driven by expectations of normal monsoon for the second year in a row.

An ICICI Securities study attributes the estimated growth in net profit of non-fertiliser businesses to a lower base in the fertiliser segment of some companies. Increase in working capital of companies because of the government's efforts to help reduce their subsidy outgo has revived operating and net profits.

While Coromandel International is likely to gain from increase in mancozeb (a