Fertilizers company Paradeep Phosphates announced H1FY25 & Q2FY25 results Q2FY25 Financial Highlights: Total Income in Q2FY25 is Rs 3,844 crore, up by 4% YoY. Total production volumes stood at 693,311 MT, reflecting a 5% YoY increase. Total sales volumes of finished fertilizers reached 865,286 MT, marking an 18% year-over-year increase. Sales volumes exceeded production by 25%, re-inforcing the company’s distribution strengths and strong brand equity. EBITDA for Q2FY25 stood at Rs 440 crore, an increase of 65% YoY, while PBT stood at Rs 296 crore, marking an increase of 146% YoY. Net debt to equity improved by nearly 25% to 0.82 in Q2FY25 compared to the start of the year. Key raw material prices witnessed an upward trend from Q1FY25 to Q2FY25. Surplus cash generated from operations stood at Rs 1,238 crore. H1FY25 Financial Highlights: Total Income in H1FY25 is Rs 6,221 crore. Total Production Volumes stood at 1,232,504 MT, while Total Sales Volumes reached 1,419,857 MT. EBITDA for H1FY25 stood at Rs 607 crore, while PBT amounted to Rs 310 crore. New product sales volumes for nano-fertilizers were over 6 Lakh bottles and for TSP were 63,330 MT in H1. With favorable monsoon conditions, healthy reservoir levels, robust crop prices above MSPs, and moderate fertilizer inventory levels in the country, fertilizer demand is projected to remain strong throughout the Rabi season of FY25. S Krishnan, Managing Director & CEO, Paradeep Phosphates said: “In Q2 FY25, we benefited from favorable conditions, including good monsoons, healthy reservoir levels, and robust crop prices. We achieved strong volume growth across our diverse portfolio of NPK fertilizers, further reinforced by the acceptance of our climateand soil-friendly products like nano-fertilizers and TSP. Our strategic approach to raw material sourcing and diligent operational management improved our financial leverage, resulting in a 25% reduction in our net debt-to-equity ratio. The board has also approved plans to increase our phosphoric acid capacity targeting 100% backward integration across all manufacturing sites. These initiatives will enhance our earnings quality and position us for sustainable growth. Looking ahead, I am optimistic about the upcoming Rabi season, which we anticipate will mirror the strong demand seen in Kharif. With our robust supply chain linkages and backward integration capabilities, along with our diverse product offerings and strong channel partnerships, we are well-equipped to serve Indian farmers and soils effectively. We will continue to prioritize our ESG initiatives as a core aspect of our growth strategy. I want to extend my heartfelt gratitude to all stakeholders for their ongoing support in our journey.” Result PDF
Conference Call with Paradeep Phosphates Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Paradeep Phosphates Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.
Fertilizers company Paradeep Phosphates announced Q4FY24 & FY24 results: Total Income from Operations: FY24: Rs 11,575 crore, down by 13% YoY. Q4FY24: Rs 2,243 crore, down by 38% YoY. The reductions are attributable to a decrease in product subsidies. EBITDA: FY24: Rs 717 crore, down by 20% YoY. Q4FY24: Rs 178 crore, up by 11% YoY. Production Volumes: FY24: 2,304,969 MT, up by 13% YoY. Q4FY24: 470,429 MT. Finished Fertilizer Production: Paradeep site: FY24: 1,425,845 MT, up by 10% YoY. Q4FY24: 319,850 MT. Goa site: FY24: 879,124 MT, up by 19% YoY. Q4FY24: 150,579 MT. Total Sales Volume: FY24: 2,527,119 MT, compared to 2,029,287 MT in FY 2022-23. Commenting on the results, N Suresh Krishnan, Managing Director & CEO, PPL said, “The fiscal year 2023-24 brought significant macroeconomic changes. We witnessed global uncertainty, experienced average rainfall, and benefited from the normalization of raw material prices worldwide, although this was accompanied by a decrease in subsidy realizations. Despite these fluctuations, we achieved positive volumes, producing 2.3 million tons of various grades of DAP and NPK fertilizers throughout the year—an increase of 13% compared to last year. Furthermore, our sales reached nearly 2.53 million tons across various states in India, marking a 25% increase from the previous year. We also managed our debt effectively reducing it by 14% YoY. Looking ahead, we are gearing up to introduce innovative grades of soil and crop specific NPK fertilizers. We are also in the process of launching our own researched biogenic nano-urea and nano-DAP fertilizers, which promises a significant value addition to soil nutrition. Our commitment to sustainability has also been recognized, with our first-time entry into the S&P;’s DJSI index. We remain dedicated to advancing our ESG goals and making sustainability a central theme in all our operations. With an expectedly better monsoon season ahead, we are fully prepared to meet the demands of the Kharif season with an optimal product mix, enhanced farmer engagement, and improved operational efficiencies.” Result PDF
Conference Call with Paradeep Phosphates Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Paradeep Phosphates Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Fertilizers company Paradeep Phosphates announced Q1FY24 results: Total Income in Q1FY24 is Rs 3,073 crore, up by 26% YoY. Total production volumes were 6,40,784 MT, up by 126% YoY. Paradeep site produced 3,53,020 MT of finished fertilizers, up by 32 % YoY. Goa site, which was acquired by PPL on June 1, 2023, produced 2,87,764 of finished fertilizers in Q1FY24 respectively. Total sales volumes stood at 6,21,755, up by 81% YoY. The EBIDTA and PBT for Q1FY24 stood at Rs (19) and Rs (159) crore respectively. Q1FY24 EBIDTA and PBT were impacted by the retrospective subsidy adjustment and partly by a carry forward of high-cost raw-material. The net one-time adjustment taken is Rs 305 crore. Sans the adjustment, EBIDTA would be Rs 285 crore. Phosphoric acid expansion from 3 lakh to 5 lakh tons at the Paradeep site is completed. Backward integration benefits to accrue from subsequent quarters. Key raw material prices for the industry have seen a steady decline throughout Q1FY24. The normalization is expected to aid the bottom line in FY24. Given growing food demand and “area under crop cultivation” in the country, supported by good monsoons and high reservoir levels, fertilizer demand is expected to stay firm. Commenting on the results, S Krishnan, Managing Director, Paradeep Phosphates said, “We have recorded strong production and sales volumes in Q1FY24. Both the sites have been produced optimally. The Paradeep site in Q1FY24 has produced 3,53,020 MT of finished fertilizers up by 32% compared to Q1 last year. Our Goa site has operated at close to full utilization levels in Q1 and has produced unique grades like N-19, and N-24 in addition to our core products. We confirm that the expansion in our phosphoric acid capacity to 5 lakh metric tons at our Paradeep site is completed effective 1st August 23 and the benefits of this backward integration are expected to accrue from Q2FY24 onwards. The industry outlook looks good with the recent revival of monsoon, healthy reservoir levels, higher crop prices vis a vis MSPs, and normalization of global commodity prices. With these tailwinds and our robust capabilities across supply-side, manufacturing, and pan-India distribution, we are focussed on capturing the maximum value and translating it for our shareholders in FY24.” Result PDF