Asked two questions in today’s concall - one on the usage of drones and one on Nano Urea, You can listen to the answer from 1:02:15 onwards:
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Fail to understand why Deepak fertilizer is hitting 52 week high but Chambal is going down and down. Ukraine war was supposed to benefit fertilizer companies… no?
This is mainly because of the Government’s hike in its share for subsidy for di-ammonia phosphate (DAP) by 140 per cent.
Very bad results…
Net profit for the period declined 45 percent to Rs 274.27 crore compared to Rs 506 crore during the year-ago quarter.
The drop in net profit is despite sales nearly doubling for the quarter to Rs 8,587 crore.
Chambal Fertilisers said that it suffered a one-time margin loss of Rs 237 crore on phosphatic and potassic (P&K) fertilisers during the quarter due to a substantial increase in prices of imported fertilisers and adverse movement in USD‐INR exchange rate that could not be passed on to the market.
A lag in subsidy payments, leading to working capital pressures, also contributed to the loss.
Operationally, the company’s EBITDA declined 40 percent to Rs 445 crore from Rs 738 crore year-on-year while margin saw erosion of over 11 percentage points to just 5.2 percent from 16.5 percent.
Additionally, the company’s board also approved a revision in the capacity and estimated cost of the company’s Technical Ammonium Nitrate Project.
The capacity of the plant for manufacturing Technical Ammonium Nitrate has now been revised from approximately 2.2 lakh MTPA to 2.4 lakh MTPA. The estimated project cost has also been revised higher from approximately Rs 1,170 crore to Rs 1,645 crore.
The project is estimated to be completed in the next 34 months, with its implementation subject to necessary statutory and other approvals.
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