Chambal Fertilizers gains 5% on strong growth in Q1 net profit; check details

In a filing to the stock exchange on Tuesday, June 6, the company said that its revenue from operations declined 11.60% to ₹4,984.38 crore in the June quarter compared to ₹5,598.22 crore in the same period a year ago.

However, the company’s consolidated net profit jumped 32.8% to ₹448.32 crore during the June quarter, compared to ₹338.6 crore in Q1FY24.

The fertiliser and chemicals supplier’s EBITDA (earnings before interest, tax, depreciation and amortisation) increased 29% YoY in Q1FY25 to ₹838 crore compared to ₹648 29 crore in the year-ago period.

The company also informed the stock exchanges that it pre-paid ₹ 1,785 crore towards long-term loans. Thus, it has become a zero-debt firm.

Shares of Chambal Fertilizers and Chemicals rallied more than 5% to hit an intraday high of ₹519.45 apiece on the NSE on Wednesday, recovering from a two-day losing streak. However, the fertiliser stock pared some of the gains to close at ₹518.6 apiece, up 5.41%, on the NSE.

On its future growth plan the company informed the bourses that it has a strong product pipeline of 4 new products during FY25, in addition to the launch of 8 new products in Q1. The company aims to focus on high-value crops like fruits, vegetables, and niche farm products. The company said that hybrid and research variety seeds will be the new focus area.

The company also informed the exchanges about strong growth in the sunrise category of biologicals as well as in revenue and margins of biological products.

The company serves farmers in 10 states, with leading positions in Rajasthan, Madhya Pradesh, Punjab, and Haryana. The company’s marketing network includes 20 regional offices, 4,200 dealers, and 60,000 retailers. The company has three manufacturing sites in Kota, Rajasthan, with a combined production capacity of almost 3.4 million tons. In FY23, these plants had a 98% utilisation rate.