Nov’22: Urea sales down by 4% YoY

As per the provisional fertilizer offtake data for Nov’22, urea dispatches declined by 4% YoY to 549k tons against 574k tons in SPLY. Urea sales of EFERT plunged by 52% YoY to clock in at 96k tons owed to lower production due to ATA at the company’s base plant. Whereas FFC, FFBL (combined), and FATIMA posted a growth of 3% and 89% YoY, arriving at 273k tons and 142k tons, respectively.

On an MoM basis, urea offtake climbed up by 28% owing to the commencement of the Rabi season. Hence, sales of FFC and FFBL (combined) and FATIMA ascended by 17% and 88% MoM, respectively. However, urea offtake of EFERT dropped by 1% MoM. On a cumulative basis, urea sales depicted an uptick of 2% YoY during 11MCY22 to settle at 5,748k tons. The offtake of FATIMA witnessed a jump of 28% YoY to 944k tons in 11MCY22. Meanwhile, the urea sales of FFC and FFBL (combined) displayed a dip of 2% YoY to 2,668k tons, while EFERT’s sales plummeted by 19% during 11MCY22 to 1,715k tons.

DAP offtake up by 5% YoY in Nov’22

DAP offtake showcased a jump of 5% YoY | 3.2x MoM, to settle at 231k tons during Nov’22 on account of the commencement of the Rabi season, increase in support price of wheat and reduction in DAP prices. Albeit, DAP offtake during 11MCY22 slumped by 41% YoY to 1,043k tons. On a company-specific basis, DAP sales of FFC and FFBL clocked in at 141k tons in Nov’22, recording a jump of 22% YoY | 3.7x MoM. Whereas, FFC and FFBL’s DAP offtake during 11MCY22 arrived at 618k tons, down by 32% YoY. Meanwhile, EFERT’s DAP sales during Nov’22 portrayed a significant growth of 2.3x YoY | 2.6x MoM to 51k tons. With this, EFERT’s DAP offtake in 11MCY22 arrived at 232k tons, down by 19% YoY.

Inventory position

Towards the end of Nov’22, the closing inventory of urea arrived at 356k tons compared to 449k tons in Oct’22. Moreover, the inventory of DAP is 532k tons as of Nov’22.

Courtesy – AHL Research