Chambal Fertilizers Share Price

Chambal Fertilisers and Chemicals Limited is a diversified company with business operations in agri products, shipping and textiles segments. The company headquartered in Rajasthan’s Kota is one of the largest players in the agri products sector. It manufactures almost 13% of the total Urea production in India.

Its three hi-tech Urea plants at Gadepan under Kota have an installed annual production capacity of about 3.4 million metric ton – the largest urea manufacturing facility at one place in the country.

Chambal Fertilisers and Chemicals Limited was founded by industrial doyen Krishna Kumar Birla. The Birla family scion entered the fertiliser business in 1967 through his company Zuari Industries Limited by setting up a Urea plant near Village Sancoale in Goa. Zuari Industries Limited promoted Aravali Fertilisers Limited, which was incorporated in 1985. In 1989, the new company was renamed as Chambal Fertilisers and Chemicals Limited (CFCL).

Chambal completed a major land acquisition at Gadepan in 1990 and commissioned its first Urea plant in October 1993. That year itself CFCL came up with its initial public offering (IPO), and the company was listed on the stock exchanges.

Within three years, CFCL made its first overseas investment as it formed a Joint Venture Indo Maroc Phosphore SA in Morocco. The company entered this JV to operate captive sources of Phosphoric Acid, a raw material crucial for making Phosphatic fertilisers, but in short supply in India.

CFCL went on adding to its yield, as the two other urea units in Gadepan started commercial production in 1999 and 2018 respectively.

In 2010, CFCL’s urea production and sales crossed the 2 million tonne mark, as its market stretched to 13 states in India by 2012.

In 2012, the company commissioned a Single Super Phosphate plant at Gadepan.

Chambal Fertilisers’ market capitalisation stood at more than ₹15,500 crore as of December 30, 2023. Chambal Fertilisers share price has gone up over 58% in the last three years.

Chambal Fertilisers and Chemicals business operations

CFCL caters to the requirement of farmers across India and is a major fertiliser supplier in Rajasthan, Punjab, Madhya Pradesh, Haryana, Uttar Pradesh, Chhattisgarh and Bihar. It supplies its products through a large marketing network of 19 regional offices, 2,800 dealers and 50,000 retailers.

Apart from manufacturing Urea through the three Gadepan plants, CFCL also markets Di Ammonium Phosphate, Muriate of Potash, NPK fertilisers, plant nutrients and crop protection chemicals, by sourcing them from leading suppliers in India and abroad. The Gadepan plants also produce Ammonia.

The Gadepan-I Ammonia plant has a Danish design, while the Urea unit has been made using Italian technology. The Gadepan-II Ammonia plant is based on US technology, while the Urea facility has been designed by using Japanese knowhow. The Ammonia plant has a maximum capability of producing 1520 MT per day and that of each Urea plant is 2620 MT per day.

Gadepan III Urea plant uses the latest and sophisticated technology from Japan. The Gadepan-III Ammonia facility has been designed by a US firm.

Financial highlights

• Consolidated revenue from operations increased by 72% to ₹27,772.81 crore in FY23 from ₹ 16,068.83 crore in FY22.
• The company’s profit after tax (PAT) dropped 34% year-on-year to ₹1,033.79 crore in FY23 from ₹1,566.06 crore in FY22.
• Its operating profit margin stood at 6.38% in FY23 as against 12.81% in FY23.
• The company's earnings per share (EPS) decreased 34% to ₹24.85 in FY23 as against ₹37.62 in FY22.
• The company made a total capital expenditure of ₹101.63 crore in FY23.