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27 Years
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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.”
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