Fertilizer:1QCY25E earnings to drop on lower off-take - By Taurus Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We expect Fertilizer players in our universe to witness a decline in profitability (24%YoY) on the back of drastic drop in off-take during 1QCY25 i.e. Urea down 40%YoY and DAP down 50% YoY, attributed to continuous disruption in water supply (Rabi Season 2024-25), lower farm economics, weak outlook for wheat and seasonality effect i.e. Ramazan and Eid Holidays.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">However, EFERT&rsquo;s market share dropped to 23% (down 10pptsYoY) in 1QCY25 owning to higher gas tariffs compared to FFC along with increase in the market share post amalgamation with FFBL during 2HCY24 (up 13pptsYoY in 1QFY25). Further, disparity in gas pricing mechanism has put significant...